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2024 (2) TMI 482 - HC - GSTLevy of penalty u/s 129(3) of the Uttar Pradesh Goods and Service Tax Act, 2017 - Part B of the E-Way Bill was filled up by the petitioner immediately after the interception, that is, much before the order of detention was passed - HELD THAT - In the present factual matrix, it is crystal clear that IGST had already been paid and there was no involvement whatsoever of any mens rea for evasion of tax. Furthermore, the only technical fault was with regard to non filling up of Part B of the E-Way Bill. The impugned orders are not sustainable and the same are required to be set aside - petition allowed.
Issues involved:
The issue involves a writ petition challenging the penalty levied under Section 129(3) of the Uttar Pradesh Goods and Service Tax Act, 2017, and the order of the Appellate Authority under Section 107 of the Act. Judgment Details: Issue 1: Penalty Levied under Section 129(3) of the Act The petitioner was aggrieved by the penalty levied by the Assistant Commissioner, Commercial Tax, Mobile Squad, Unit-I, Ghaziabad under Section 129(3) of the Act. The factual matrix revealed that although there was a technical fault in not filling up Part B of the E-Way Bill at the time of interception, the petitioner promptly rectified this by filling it up before the detention order was passed. Notably, the goods were imported from China, and IGST at 28% was already paid during import. It was emphasized that since IGST had been paid to the customs authorities during import, no further tax was applicable under the Act. The petitioner contended that there was no mens rea for tax evasion, citing precedents where mens rea was deemed essential for imposing penalties. The Court observed that there was no intent to evade tax, and the only issue was the technical non-compliance with Part B of the E-Way Bill. Issue 2: Order of the Appellate Authority under Section 107 of the Act The petitioner also challenged the order of the Appellate Authority passed under Section 107 of the Act. Given that IGST had already been paid during import and there was no mens rea for tax evasion, the Court found the impugned orders unsustainable. Relying on previous judgments emphasizing the necessity of mens rea for imposing penalties, the Court quashed and set aside the orders dated October 25, 2018, and January 27, 2020. The writ petition was allowed, and the respondents were directed to return the security to the petitioner within four weeks from the date of the judgment.
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