2024 (2) TMI 1206 - HC - GST

Levy of penalty of 200% u/s 129 of the WBGST Act - penalty levied on the ground that the e-way bill generated by the appellant for transporting the articles for export to Bangladesh had expired and, therefore, on the date and time when the vehicle was intercepted, the vehicle did not have a valid e-way bill - HELD THAT - The authorities found that the e-way bill had expired at 12 midnight on 13.06.2022 and fresh e-way bill has not been generated. Consequently, it was held that the goods were transported without a valid e-way bill. Though the appellant had sought to explain the lapse on the ground that the vehicle met to the accident and there was a settlement made between the owner of the motorcycle and the owner of the truck carrying the goods, this also had added to the delay in the process and in any event on 15.06.2022 the second e-way bill was generated and at the time when the vehicle was intercepted, hardly 24 hours had expired from the time at which the first e-way bill had expired. In similar matters court has taken a view that unless and until it is established by the department that the transporter of the goods or the owner of the goods had an intention to contravene the provisions of the Act, the question of imposing penalty under Section 129 of the Act that too 200% would not be justified. Each case has to be decided on the peculiar facts and circumstances and the court can definitely take into consideration the bona fide of the transaction and in the instant case the delay have been less than 24 hours. It is not a case where penalty can be imposed that too 200%. The other factors which are also to be taken note of that the goods have been transported and the goods in question have been exported to Bangladesh. I the instant case no penalty can be imposed on the appellant - Appeal allowed.

Summary

Issues involved:
The appeal against the order imposing penalty under the WBGST Act due to expired e-way bill for transporting goods for export to Bangladesh.

Summary:
The appellant's intra court appeal challenged the penalty imposed under the WBGST Act for an expired e-way bill when transporting goods for export to Bangladesh. The vehicle was intercepted after the e-way bill had expired, leading to the penalty imposition under Section 129 of the Act. The appellant explained the delay due to a vehicle accident and subsequent settlement, with a new e-way bill generated within 24 hours of the expiration. The court considered the bona fide nature of the transaction and the goods being exported to Bangladesh, concluding that a 200% penalty was not justified in this case. Therefore, the penalty imposed on the appellant was set aside and quashed.

The court heard submissions from both parties, with the appellant and the government counsel presenting their arguments. The goods were transported with an e-way bill valid until midnight on a certain date, but the vehicle was intercepted after the e-way bill had expired. The appellant's explanation for the delay was considered, noting that a new e-way bill was generated within 24 hours of the expiration. The court emphasized that penalty imposition should be based on the specific facts and circumstances of each case, taking into account the intent of contravening the Act.

In the peculiar circumstances of this case, the court found that no penalty should be imposed on the appellant. The court highlighted that the goods were successfully transported and exported to Bangladesh, further supporting the decision to set aside the penalty. As a result, the appeal was allowed, the penalty order was overturned, and the appellant was entitled to apply for a refund of the penalty amount paid during the proceedings, to be processed within six weeks of the court order.