E-Way Bill Generated For Exporting Goods To Bangladesh Expired Due To Accident: Calcutta High Court Quashes 200% Penalty

The Calcutta High Court has quashed the 200% penalty and held that the e-way bill generated for exporting goods to Bangladesh expired due to an accident.

The bench of Chief Justice T. S. Sivagnanam and Justice Supratim Bhattacharya has observed 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 a penalty under Section 129 of the WBGST Act that is too high would not be justified.

The appellant/assessee has filed an intra-court appeal against the order passed by the Single Bench dismissing the writ petition filed by the appellant challenging the order passed by the authorities imposing penalties under the provisions of the WBGST Act. The order was challenged on the ground that the e-way bill generated by the appellant for transporting the articles for export to Bangladesh had expired. Therefore, on the date and time when the vehicle was intercepted, the vehicle did not have a valid e-way bill. Therefore, a penalty in terms of Section 129 of the WBGST Act was imposed.

The goods were transported by the appellant in the vehicle, accompanied by an e-way bill generated on June 11, 2022. The e-way bill was valid up to midnight on June 13, 2202. On June 14, 2022, the vehicle was intercepted at about 5.30 p.m. The department found that the e-way bill had expired at midnight on June 13, 2022, and a fresh e-way bill had not been generated. Consequently, it was held that the goods were transported without a valid e-way bill.

The appellant explained the lapse on the ground that the vehicle met with 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 added to the delay in the process, and in any event, on June 15, 2022, the second e-way bill was generated. 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.

The court noted that it is not a case where a penalty can be imposed that high (200%. The other factors that are also to be taken note of are that the goods have been transported and that the goods in question have been exported to Bangladesh.

Counsel For Appellant: Rituraj Chakraborty

Counsel For Respondent: T.M. siddique

Case Title: M/S Saraf Trexim Limited Vs Deputy Commissioner Of State Tax And Ors.

Case No.: FMA/256/2023 IA NO: CAN/1/2023

Click Here To Read The Order