2024 (1) TMI 1106 - HC - GST

Levy of penalty - evasion of tax - Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 - HELD THAT - It is found that neither in the show cause notice nor in the order under Section 129(3) there was any allegation that non downloading of E-way Bill-01 was done with intention to evade tax. In spite of the same, the respondent authorities have chosen to impose maximum penalty whereas the law provides for lesser penalty under Section 122 of the Act. No case is made out with regard to evasion of tax - petition allowed.

Summary

Issues involved:
The judgment deals with a writ petition under Article 226 of the Constitution of India challenging orders passed under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017.

Details of the Judgment:

Issue 1: Legality of Impugned Orders
The petitioner challenged orders dated August 30, 2017 and November 22, 2018 passed under Section 129(3) of the Act. The petitioner argued that there were successive changes in notifications during the relevant period, leading to confusion among field authorities. Citing previous judgments, it was highlighted that the authorities failed to track legislative changes, resulting in erroneous imposition of penalties. The Court noted that there was no allegation of tax evasion in the show cause notice or the order under Section 129(3). Relying on Division Bench judgments, the Court found no case of tax evasion and quashed the impugned orders, allowing the writ petition.

Conclusion:
The High Court quashed the impugned orders dated August 30, 2017 and November 22, 2018, as there was no evidence of tax evasion and the penalties imposed were deemed excessive. The Court relied on previous judgments to support its decision and granted consequential reliefs to the petitioner.