2022 (4) TMI 696 - HC - GST

Principles of parity - mistake while generating E-way bill - intent to evade or not - HELD THAT - The issue in question which is being sought to be raised in the present petition, has already been decided in ROBBINS TUNNELLING AND TRENCHLESS TECHNOLOGY (INDIA) PVT. LTD. VERSUS THE STATE OF M.P. AND OTHERS 2021 (2) TMI 381 - MADHYA PRADESH HIGH COURT by a Coordinate Bench, where it was held that the respondents are not justified in rejecting the appeal of the petitioner on the ground that the mistake committed while generating the E-way bill, was not a clerical error or a small mistake. In view of the above and the mistake in question being bonofide this Court invoking the principle of parity, directs that the impugned orders are quashed. Respondents will be at liberty to consider the case of the petitioner for imposition of a minor penalty, while treating the mistake in question, to be a clerical mistake The writ petition is allowed.

Summary

Issues:
Challenge to orders dated 21.08.2018 and 30.10.2019 under Central Goods and Service Tax Act, 2017 regarding tax liability and penalty imposition due to an error in generating E-way bill.

Detailed Analysis:
The petitioner, a private company dealing in steel and HT wires, entered into an agreement for goods supply with another company. The goods were to be delivered at a specific factory. A consignment was transported by a particular vehicle through a transport company. A tax invoice and E-way bill were generated for the consignment, but the address on the E-way bill did not match the delivery location, leading to proceedings under Section 129 of the CGST Act. This resulted in the imposition of additional tax and penalty on the petitioner, which was upheld in the appeal process.

The petitioner argued that the error in the E-way bill was unintentional and not meant to evade tax liability, especially since the transporting vehicle remained the same. The court considered the issue, noting that a similar matter had been decided previously by both a Coordinate Bench and the present Bench in other cases. Given the bona fide nature of the mistake and invoking the principle of parity, the court decided to quash the orders dated 21.08.2018 and 30.10.2019 passed by the tax authorities.

The court directed that the respondents could consider imposing a minor penalty on the petitioner, treating the error as a clerical mistake as per a Circular issued by the Ministry of Finance, Government of India. As a result, the writ petition was allowed to the extent mentioned, with no order regarding costs.