Penalty for non-filling Part-B of e-way bill unsustainable as technical glitch and no intent to evade found
{Auto Industries vs. State of Up [2025] 181 taxmann.com 36 (Allahabad}
Facts
Petitioner, a GST-registered manufacturer, was transporting goods with proper tax invoices and other documents. However, Part-B of the e-way bill could not be updated due to a technical glitch. The goods were detained, and penalty was imposed under Section 129 even though all documents were in order and there was no allegation of intent to evade tax.
Issue
Whether penalty under Section 129 can be sustained when non-updation of Part-B of the e-way bill occurred solely due to a technical error and there was no mens rea or attempt to evade tax.
Held
The Court held that in the absence of any intention to evade tax and where the lapse was purely a technical glitch, imposition of penalty was unjustified. Since all documents were valid and the error was undisputedly technical, the penalty was unsustainable. The impugned orders were therefore quashed.
