Delhi HC: Penalty Can’t be Imposed for Mere Expiry of e-Way Bill

Delhi High Court ruled that the penalty for the expiry of an e-way bill is not justifiable when all required documents are produced except the reason for the delay in the transportation of goods.

The petitioner has challenged the order dated 31st December 2021 passed by the Office of Appellate Authority (Delhi GST). Initially, this order was issued by the Assistant Commissioner, Ward-112, Special Zone, Delhi. The order contained a tax demand of Rs..2,33,100/- and a 100% tax amount has been imposed as a penalty.

It was contended by the respondent counsel that the department had raised the demand as the e-way bill was expired. Also, they mentioned that 

• The goods were being transported from Guwahati to New Delhi.
• The e-way bill was valid till 28th September 2020.
• However, the GST officer intercepted the vehicle on 29th September 2020 at 3:40 AM, when the e-way bill had expired.

The petitioner contended that as the earlier vehicle had broken down, they had to shift the goods to another vehicle to continue the transportation. However, the petitioner failed to file the extension of time for the completion of the transportation.

It was evident that the petitioner was not intended to evade tax. Also, the court opined that the petitioner should be given another chance to establish a reason for goods not reaching the destination before the expiry of the e-way bill. Accordingly, the High Court disposed of the writ petition by setting aside the impugned order.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in