{"id":3376,"date":"2025-04-10T11:30:01","date_gmt":"2025-04-10T06:00:01","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3376"},"modified":"2025-04-10T11:30:01","modified_gmt":"2025-04-10T06:00:01","slug":"seizure-and-penalty-unjustified-due-to-technical-error-in-shipping-address-on-auto-populated-e-way-bill-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/seizure-and-penalty-unjustified-due-to-technical-error-in-shipping-address-on-auto-populated-e-way-bill-hc","title":{"rendered":"Seizure and Penalty Unjustified Due to Technical Error in Shipping Address on Auto-Populated E-Way Bill | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000391136\/seizure-and-penalty-unjustified-due-to-technical-error-in-shipping-address-on-auto-populated-e-way-bill-hc\">Zhuzoor Infratech Pvt. Ltd. Versus Additional Commissioner Grade 2 (2025) 28 Centax 386 (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 Nitin Kumar Kesarwani<\/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 assessee, a registered supplier, procured 16mm TMT bars with instructions for invoicing in its name and delivery to New Delhi. Upon generation of the e-tax invoice, the GST portal auto-populated the e-way bill, erroneously reflecting the shipping address as West Bengal. During transit, the consignment was intercepted due to this mismatch. No discrepancy was found in the quantity or quality of goods, and the e-way bill remained valid. Penalty proceedings under Section 129 of the CGST Act and Uttar Pradesh GST Act were initiated. The assessee filed a writ petition before the Hon\u2019ble High Court, asserting that the error was technical and system-generated, with no intent to evade tax, and relied on Section 37 to establish proper reporting of outward supplies.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court held that a technical error in the auto-populated shipping address, absent any discrepancy in goods or intent to evade tax, does not justify seizure or penalty. It emphasized that the e-way bill\u2019s purpose is to track movement of goods, not to penalize inadvertent system errors. Penal provisions apply only where deliberate contravention is evident. The penalty orders were accordingly quashed.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Sun Flag Iron and Steel Company Limited v. State of UP \u2014 Neutral Citation No.: 2023:AHC:215906 \u2014 Followed [Para 13]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Zhuzoor Infratech Pvt. Ltd. Versus Additional Commissioner Grade 2 (2025)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3385,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-3376","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>Seizure and Penalty Unjustified Due to Technical Error in Shipping Address on Auto-Populated E-Way Bill | HC<\/title>\n<meta name=\"description\" content=\"The High Court quashed the penalty, holding that a system-generated error in the e-way bill\u2019s shipping address without tax evasion intent does not warrant seizure or penalty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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