Judicial Corner: Penalty under GST can’t be imposed just for technical breach of not extending time period of E-way bill (20.06.2024)

Penalty under GST can’t be imposed just for technical breach of not extending time period of E-way bill 

  • Goods were accompanied by a tax invoice and an e-way bill that had expired due to a vehicle breakdown
  • Authorities imposed tax and penalty under Section 129(3) of the UP GST Act due to the expired e-way bill.
  • The court held that a mere technical breach of not extending the e-way bill validity is insufficient for penalty if there is no intent to evade tax.
  • The imposed orders were quashed, and the tax/penalty was directed to be refunded due to the lack of intent to evade tax.

Allahabad HC in Prahlad Rai Vijay Kumar v. State of U.P. [WRIT TAX NO. 587 OF 2022]

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