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Madras High Court

In this case Madras High Court imposes minor penalty by quashing the petitioner plea and said that the expiration of E-Way Bill does not create the scope of tax evasion. Even if the Bill got expired you can’t escape of tax. The case was Tvl. Thiruvannamalaiyar Transport V/S The Deputy State Tax Officer W.P.No.32960 of 2022. The case was presided by Mr. Justice M. Sunder.  

Facts of the case

1. The petitioner filed the petition to issue a writ under Article 226 of the constitiution.
2. A truck was carrying a consignment which was described as ‘Angles’ from Gummidipoondi to Ranipet was intercepted in wee hours i.e., at around 4 in morning at Walaja toll. The decision was made to detain the truck, following the interception.
3. The only ground on which the truck was detained was the expiry of E-Way Bill. The petitioner said that the truck which was transporting the consignment breakdown, which was requiring repair and causing delay. The portal was blocked without the excess of renew of E-way Bill, though there were 4 more Hours available to do so at the time truck interception.
4. The truck driver of at the time interception doesn’t mention about the breakdown and repairing so the department issued the order. There was also no mention of the portal being blocked, it has been mentioned that no steps were taken to extend the the E-way Bill.
5. As per the circular dated 31/05/2019, where the movement of the goods is accompanied by any one of the basic documents such as an invoice, a bill of supply, a delivery challan, or an E-way bill, and in such cases where at least one of the basic documents, manifestly showing the sufferings of the tax in particular transcation, is available, a penalty of up to Rs.5,000per act shall be imposed to deter the reoccurence of the offence.

Judgment

The court quashed the petition of the petitioner and directed the writ petitioner should pay the penalty of Rs.5,000.The court noted that there would have been no revenue loss to the respondent or state if the truck had reached its destination without being intercepted. He also said that expiry of the E-way Bill does not create any scope for tax evasion.

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JUDGEMENT REVIEWED BY NAMRATA SINGH

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