2024 (5) TMI 1399 - HC - GST

Challenge to penalty order passed u/s 129(3) of the UPGST Act, 2017 - expiry of e-way bill - engine of the vehicle got failed and after being repaired, it was moved for its onward journey - intent to evade tax, present or not - HELD THAT - One may take reference to the judgment of this Court in M/s Globe Panel Industries India Pvt. Ltd. v. State of U.P. and others 2024 (2) TMI 363 - ALLAHABAD HIGH COURT passed by this Court, wherein this Court had dealt with the similar issue and held ' Indubitably, there is a technical violation that has been committed by the petitioner. However, the authorities have not been able to indicate in any manner that the E-Way Bill had been used repeatedly nor have they made out any case with regard to an intention to evade tax by the petitioner.' In light of the same, this Court is unable to agree with the findings of the authorities, and accordingly, the impugned orders dated December 9, 2017 and May 8, 2019 are quashed and set aside - petition allowed.

Summary

The High Court of Allahabad quashed penalty orders under Section 129(3) of the UP Goods and Services Tax Act, 2017 due to expired e-way bill without intent to evade tax. The court directed the respondents to refund the tax and penalty to the petitioner within four weeks. The writ petition was allowed with no costs.