In MAT/1011/2023 -CAL HC- Calcutta High Court sets aside 200% penalty imposed on Bitumix India LLP for e-way bill violation
Chief Justice T.S. Sivagnanam & Justice Uday Kumar [16-06-2023]

Read Order: M/s Bitumix India LLP and Anr V. Deputy Commissioner of Revenue, State Tax and Ors

Chahat Varma

New Delhi, July 13, 2023: The Calcutta High Court has provided relief to Bitumix India LLP and others (appellants) by setting aside the penalty imposed by the adjudicating and appellate authorities. The penalty was modified to a fine of Rs. 50,000, inclusive of CGST and WBGST, instead of the originally imposed 200% penalty.

Briefly stated, the appellants in the case were transporting goods to Assam and had an e-way bill valid until March 18, 2022. However, due to a vehicle breakdown, the goods remained in West Bengal at Dankuni on that date. During this time, the consignee sold the goods to another purchaser in Assam, and a new e-way bill was generated on March 22, 2022, for further transportation. The vehicle was detained on March 25, 2022, and a penalty was imposed due to the appellants' failure to renew or extend the initial e-way bill from March 18. Consequently, the appellants faced charges under Section 129 of the Central Goods and Services Tax Act and West Bengal Goods and Services Tax Act, resulting in the imposition of a 200% penalty.

The division bench of Chief Justice T.S. Sivagnanam and Justice Uday Kumar acknowledged that the appellants' only mistake was the failure to renew the e-way bill, despite the goods being sold in transit. While the violation was recognized, the court deemed it not severe enough to warrant a 200% penalty. As the goods were covered by a valid e-way bill at the time of interception, satisfying the requirements of Section 129 of the Act, the court concluded that the appellants should be put on terms.