Non-filling of e-Way Bill Part B Technical Mistake: No Penalty when department not able to indicate Fraudulent intention [Read Order]

Facts of the Case:

• The factual matrix indubitably is that the invoices contained the vehicle number in which the goods were being transported;
• Secondly, only part B of the e-way bill could not be generated;
• Thirdly, the department has not been able to indicate any intention of the petitioner to evade tax.
• Furthermore, in the present case, this was not a sale that was being made to a third party, but the goods were transported from one branch of the petitioner to another branch.

Order of the Court:

5. Upon consideration of the arguments made by counsel appearing on behalf the parties and upon perusal of the documents, it is clear that the department has been unable to indicate any intention of the petitioner to evade tax.

6. Furthermore, the judgement relied upon by the petitioner is directly on the point and, accordingly, I see no reason to defer from the same.

7. In the present case also, the defect was of a technical nature only and without any intention to evade tax. Accordingly, the penalty imposed under Section 129(3) of the UPGST Act is unsustainable.

8. In light of the above, the orders dated March 6, 2020 and September 16, 2023, are quashed and set aside. The writ petition is allowed. Consequential reliefs to follow. The respondents are directed to return the security to the petitioner within six weeks.

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