{"id":3283,"date":"2025-04-01T19:49:33","date_gmt":"2025-04-01T14:19:33","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3283"},"modified":"2025-04-01T19:49:33","modified_gmt":"2025-04-01T14:19:33","slug":"no-penalty-for-expired-e-way-bill-if-there-was-no-finding-regarding-intent-to-evade-tax-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-penalty-for-expired-e-way-bill-if-there-was-no-finding-regarding-intent-to-evade-tax-hc","title":{"rendered":"No Penalty for Expired E-Way Bill if There Was No Finding Regarding Intent to Evade Tax | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000390809\/no-penalty-for-expired-e-way-bill-if-there-was-no-finding-regarding-intent-to-evade-tax-hc\">Saahaj Milk Producer Company Ltd. Versus State of U.P. (2025) 28 Centax 233 (All.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Piyush Agrawal<\/strong>, J.<\/li>\n<li><strong>Shri Puneet Arun<\/strong>, for the Petitioner.<\/li>\n<li><strong>Shri Ravi Shanker Pandey<\/strong>, ACSC, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner-assessee, engaged in manufacturing and retailing milk products, generated e-way bills for an intra-state stock transfer. Due to an unforeseen personal emergency, the driver diverted the vehicle, leading to the expiry of the e-way bill. The department intercepted the vehicle and imposed a penalty despite the petitioner\u2019s explanation that the delay was unintentional. The appellate authority upheld the penalty, leading the petitioner to seek judicial relief, emphasizing that the expiry did not indicate an intent to evade tax.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court held that, as per established precedents, penalty and seizure under Section 129 of the CGST Act, 2017, are unjustified in the absence of intent to evade tax. Since the expired e-way bill pertained to an intra-state stock transfer and not a taxable sale, and no finding suggested tax evasion, the penalty proceedings were vitiated. The court quashed the impugned orders as legally untenable.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Assistant Commissioner (ST) v. Satyam Shivam Papers Private Limited \u2014 [SLP \u00a9 No. 21132\/21 decided on 12.1.2022] \u2014 Followed [Para 14]<\/li>\n<li>Same Deutz Fahr India Pvt. Ltd v. State of Telangana \u2014 Writ Petition No. 13392 of 2020 \u2014 Referred [Para 7]<\/li>\n<li>Shyam Sel and Power Ltd. v. State of UP \u2014 [Neutral Citation No. 2023: AHC: 191074] \u2014 Followed [Para 13]<\/li>\n<li>Vacmet India Ltd. v. Additional Commissioner, Grade 2 Appeal \u2014 [Neutral Citation No. 2023: AHC: 200160] \u2014 Followed [Para 15]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Saahaj Milk Producer Company Ltd. Versus State of U.P. (2025)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3293,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-3283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Penalty for Expired E-Way Bill if There Was No Finding Regarding Intent to Evade Tax | HC<\/title>\n<meta name=\"description\" content=\"Penalty for expired e-way bill during intra-state stock transfer was quashed by the High Court due to lack of intent to evade tax.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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