NO Penalty for expiry of e-way bill and not extended due to traffic blockage : Supreme Court

NO Penalty for expiry of e-way bill as goods not delivered in time due to genuine reason

Facts of the case

Whether Order by High Court setting aside tax demand and penalty for expiry of e-way bill when goods could not be delivered within validity period because of traffic blockage is correct ?

Decision of Supreme Court

There is no denial by the GST Department of the traffic blockage at due to the anti CAA and NRC agitation.

Goods in question could not be taken to the destination within time for reasons beyond the control of respondent-taxpayer including traffic blockage due to agitation

State alone remains responsible for not providing smooth passage of traffic  

In our considered opinion, there was no material before GST Officer to come to the conclusion that there was evasion of tax by the petitioner merely on account of lapsing of time mentioned in the e-way bill because even the GST Officer does not say that there was any evidence of attempt to sell the goods to somebody else. On account of non-extension of the validity of the e-way bill by petitioner or the auto trolley driver, no presumption can be drawn that there was an intention to evade tax.

No question of law relating to operation and effect of Section 129 involved.

GST Considering the conduct of GST officer and harassment faced by taxpayer, additional costs of Rs. 59,000 imposed in addition to costs of Rs. 10,000 imposed by High Court