2024 (8) TMI 447 - HC - GST

Levy of penalty - intent to evade tax or not - challenge to order passed under Section 129 of the Uttar Pradesh Goods and Service Tax/Central Goods and Service Tax Act, 2017 read with Section 20 of the Integrated Goods and Service Tax Act, 2017 - HELD THAT - In absence of any finding as to evasion of tax, the penalty imposed is argued to be without any authority of law. The law on the above subject is very clear that without there being any intention/ mens rea for evasion of tax, no penalty can be imposed. Furthermore, at the time of seizure all the documents were presented except one document being the e-invoice, which was also downloaded on the very same day. The finding of the authorities with regard to intention to evade tax is not supported by the factual matrix of the case, and accordingly, the impugned order dated July 20, 2024 is quashed and set aside with a direction upon the authority concerned to release the vehicle and goods within a period of two weeks from date - Petition disposed off.

Summary

The High Court of Allahabad quashed an order imposing penalty under GST Acts due to a bona fide mistake without intention to evade tax. The court directed the release of the vehicle and goods within two weeks. Case citation: TMI.