Clerical Mistake In Address On E-Way Bill: Madhya Pradesh High Court Imposes Minor Penalty

Mariya Paliwala

25 April 2022 11:44 AM IST

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Clerical Mistake In Address On E-Way Bill: Madhya Pradesh High Court Imposes Minor Penalty

The Madhya Pradesh High Court bench of Justice Sheel Nagu and Justice Manindar Bhatti has held that a minor penalty can be imposed for a clerical mistake in the address on an e-way bill.The petitioner/assessee, a private company in the business of steel as well as HT wires, entered into an agreement with Reva Engineering Pvt. Ltd., Jabalpur, for the supply of goods. As per the agreement,...

The Madhya Pradesh High Court bench of Justice Sheel Nagu and Justice Manindar Bhatti has held that a minor penalty can be imposed for a clerical mistake in the address on an e-way bill.

The petitioner/assessee, a private company in the business of steel as well as HT wires, entered into an agreement with Reva Engineering Pvt. Ltd., Jabalpur, for the supply of goods. As per the agreement, the goods had to be delivered to the factory at Rewa. The agreement ultimately resulted in the transportation of a consignment by Aryan Transport Company, Nagpur by vehicle.

A tax invoice was generated which reflected the destination as well as the registration number of the vehicle, which had been brought on record. The petitioner generated an E-way bill which was required to be carried along with the consignment. However, the address on the E-way bill was mentioned at the registered office of the consignee at Jabalpur, instead of Rewa, and thus, the Revenue Authorities initiated proceedings under Section 129 of the Central Goods and Service Tax Act, 2017, which ultimately resulted in the passing of the order by which the liability of additional tax as well as a penalty was imposed against the petitioner and the appeal against the order was also dismissed. The petitioner has challenged the order passed by the original as well as appellate authorities.

The petitioner submitted that the mistake while generating the E-way bill was an inadvertent human error and there was no intention to evade the tax liability, particularly when the vehicle number that was transporting the goods was the same.

The court observed that the department will be at liberty to consider the case of the petitioner for the imposition of a minor penalty, while treating the mistake as a clerical mistake as per Circular dated 14.09.2018 issued by the Ministry of Finance, Government of India.

Case Title: Technosteel Infraprojects Pvt. Ltd Vs The State Of Madhya Pradesh

Clerical Mistake In Address On E-Way Bill: Madhya Pradesh High Court Imposes Minor Penalty

Mariya Paliwala

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