The Delhi High Court said that the penalty for the expiry of an e-way bill is not justifiable if all documents created except the reason for the delay in the transportation of goods are not expressed.
The applicant was represented by Mr Rahul Gupta with Mr Rakesh Kumar and the respondent was represented by. The applicant, Nirmal Kumar Mahaveer Kumar opposed the order on 31.12.2021 issued via respondent no.2/Office of Appellate Authority (Delhi GST) which confirmed the demand raised by respondent no.3/Assistant Commissioner, Ward-112, Special Zone, Delhi, towards tax and penalty.
The amount demanded for the tax was Rs.2,33,100 and an identical amount would ask for the penalty that shows the penalty was levied at a 100% rate.
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Mr Anurag Ojha opposed the same, the counsel appeared for the respondent that the demand was asked with respect to the applicant as the e-way bill made would get lapsed.
The goods were being transported from Guwahati to New Delhi where the e-way bill was valid till 28.09.2020. The goods were caught on the date 29.09.2020 at 3:40 AM, by which time the e-way bill had lapsed.
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The applicant said that before the vehicle gets broken down the other vehicle was called to transport the goods. The applicant is unable to ask for an extension of time for the finish of the journey.
The same was proof that the applicant does not have any intention to evade tax and the court recommended that the applicant requires to be provided with an additional chance to create a reason for the goods that do not reach their assigned designation prior to the expiry of the e-way bill.
Mr Justice Rajiv Shakdher and Ms Justice Tara Vitasta Ganju disposed of the writ plea by setting aside the impugned order.
