A Division bench of the High Court of Tripura recently set aside the imposed penalty for expiry of GST E-way bills and observed that the same had expired during transit, and the assessee was unable to renew them with the competent authority.
The petitioner contended that the vehicles carrying taxable goods of the petitioner entered the State of Tripura a few days later than anticipated and during which period, the validity of the GST ‘e-Way bills’ had expired. However, the vehicle was carrying duty-paid goods and there was no attempt to evade duty.
Despite this, the authorities imposed a fresh levy of duty with the penalty.
Somik Deb, assisted by A. Baran, appearing for the petitioner, submitted that the petitioner had purchased 2 lots of Mill Machineries to be delivered in Agartala. For the said purpose, on 02.02.2020, the Goods and Services Tax ‘e-Way bills’ were generated which were valid upto 15.02.2020. But owing to some unforeseen circumstances, the movement of the said vehicles was delayed.
On the ground that GST ‘e-Way bills’ have expired, the Goods and Services Tax authorities have imposed heavy levy on duty with penalty that is grossly irrational and arbitrary, as per the contentions of the petitioner.
He filed appeals before the appellate authority but failed to succeed in making his case, receiving an adverse order.
K. De, Addl. G.A. appearing for the State-respondent submitted that the whole ‘e-Way bills’ system has now gone online and the same could have been extended on time but was not extended.
The Bench of the Acting Chief Justice and Justice Arindam Lodh observed that, “the ‘e-Way bills’ had expired during the transit and the petitioner was not in a position to ask for its renewal to the competent authority when the vehicle entered into the territory of the State of Tripura.
It was thus opined that the order dated passed by the Appellate Authority is not just and proper and the same is liable to be set aside.
The Tripura High Court, allowing the refund remarked that the petitioner was entitled to all consequential reliefs including the refund.
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