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TMI BlogMandatory Compliance of Complete E-Way Bill Under GST: A Judicial Reiteration by Allahabad High CourtX X X X Extracts X X X X X X X X Extracts X X X X ..... Mandatory Compliance of Complete E-Way Bill Under GST: A Judicial Reiteration by Allahabad High Court X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in M/s BM Computers v. Commissioner Commercial Taxes reaffirmed that carrying a complete e-way bill-with both Part A and Part B duly filled-is mandatory for the movement of goods. The judgment clarifies that failure to furnish a valid and complete e-way bill can attract presumptions of tax evasion under the Uttar Pradesh Goods and Services Tax Act, 2017, and Central Goods and Services Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2017. Factual Background M/s BM Computers, a GST-registered firm engaged in trading of computer and hardware materials, dispatched goods valued at Rs.8.45 lakhs and Rs.1.43 lakhs from Agra to Ghaziabad. The transportation was facilitated by M/s Shagun Logistics Cargo Services. However, upon interception by the Mobile Squad at 3:16 AM on 06.03.2023, it was found that: * Only Part A of e-wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y bill no. 4113 1890 1103 was filled. * Part B, which is crucial for transportation details, was not updated until 4:28 AM, after the vehicle had already been detained. * Another invoice, no. ST/OUT/BMC/366, reflected intra-city transport (Agra to Agra), whereas the goods were being transported to Noida-indicative of a mismatch and potential misreporting. The petitioner contested the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition of penalty under Section 129(3) of the GST Acts and the subsequent dismissal of its appeal. It claimed the omission was a human error on the part of the transporter and not a deliberate act. Key Legal Issue Whether carrying a complete e-way bill (both Part A and B) is mandatory for transportation of goods under GST law, and whether non-compliance can be treated as an intention to evade ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x? Court's Observations and Reasoning * Mandatory Nature of Complete E-Way Bill: * The Court emphasized that post the 14th Amendment to the U.P. GST Rules, 2017, effective 01.04.2018, carrying a complete e-way bill is mandatory for any consignment valued over Rs.50,000. * The requirement is enshrined in Rule 138, which clearly stipulates that both Parts A and B of the e-way bill must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be furnished before commencement of movement. * Presumption of Tax Evasion: * Following precedents like M/s Akhilesh Traders Versus State Of U.P. And 3 Others - 2024 (2) TMI 1128 - ALLAHABAD HIGH COURT and M/s Jhansi Enterprises, Nandanpura, Jhansi Versus State of U.P. And Others - 2024 (3) TMI 219 - ALLAHABAD HIGH COURT, the Court reiterated that non-possession of complete e-way bill can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lead to a presumption of intent to evade tax. * Such a presumption is rebuttable, but only with credible and timely evidence-which was absent in the present case. * Post-Interception Compliance Irrelevant: * The fact that Part B was generated after the vehicle was intercepted undermined the petitioner's claim of inadvertent error. * Citing Jhansi Enterprises, the Court held that fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnishing documents after interception does not negate the presumption of evasion. * Conduct and Intent: * The transport of goods from Agra to Noida under the garb of an Agra-to-Agra e-way bill pointed toward deliberate misrepresentation. * The Court viewed this as part of a concerted effort to escape detection, possibly using the same documents for multiple consignments. Conclusion T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Allahabad High Court decisively held that: * The complete e-way bill (Parts A and B) is compulsory for movement of goods. * Non-filing of Part B constitutes a statutory lapse, and a presumption of tax evasion arises. * Human error or post-facto rectification does not exempt the transporter or consignor from penalty under Section 129(3) of the GST Acts. Thus, the writ petition was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed, and the penalty imposed by the department was upheld. Legal Significance This judgment is a crucial addition to GST jurisprudence. It reiterates that: * Compliance under GST is to be meticulous-particularly in procedural aspects like the e-way bill mechanism. * Businesses must ensure real-time compliance, failing which penal consequences will ensue, even if taxes have been othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise paid. Cited Precedents * M/s Akhilesh Traders Versus State Of U.P. And 3 Others - 2024 (2) TMI 1128 - ALLAHABAD HIGH COURT * M/s Jhansi Enterprises, Nandanpura, Jhansi Versus State of U.P. And Others - 2024 (3) TMI 219 - ALLAHABAD HIGH COURT * M/s Falguni Steels Versus State of U.P. And Others - 2024 (1) TMI 1150 - ALLAHABAD HIGH COURT * M/s. Rawal Wasia Yarn Dying Pvt. Ltd. Versus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner Commercial Tax And Another - 2024 (1) TMI 1245 - ALLAHABAD HIGH COURT * M/s Indeutsch Industries Private Limited Versus State Of U.P. And 2 Others - 2024 (2) TMI 1073 - ALLAHABAD HIGH COURT * M/s Varun Beverages Limited Versus State Of U.P. And 2 Others - 2023 (2) TMI 133 - ALLAHABAD HIGH COURT Final Word In light of this judgment, traders and transporters are advised to review ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and tighten their logistics compliance protocols, especially regarding the e-way bill system, to avoid future penal proceedings. X X X X Extracts X X X X X X X X Extracts X X X X
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