{"id":9781,"date":"2026-06-25T18:53:49","date_gmt":"2026-06-25T13:23:49","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=9781"},"modified":"2026-06-25T18:53:49","modified_gmt":"2026-06-25T13:23:49","slug":"gst-penalty-quashed-for-brief-e-way-bill-expiry-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/gst-penalty-quashed-for-brief-e-way-bill-expiry-hc","title":{"rendered":"200% GST Penalty Quashed for Brief e-Way Bill Expiry | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000421607\/200-penalty-for-brief-e-way-bill-expiry-held-disproportionate-as-no-evasion-existed-token-fine-imposed-hc\">Industrial Pumps &amp; Motors Agencies vs. State of West Bengal (2026) 43 Centax 198 (Cal.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Kausik Chanda<\/strong>, J.<\/li>\n<li><strong>Shri Bijay Kumar Sharma<\/strong>, for the Petitioner.<\/li>\n<li><strong>S\/Shri Tanoy Chakraborty<\/strong> &amp; <strong>Saptak Sanyal<\/strong>, for the Respondent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioners, retail traders of pumps and parts, supplied goods to Durgapur Steel Plant and generated an e-way bill for transportation of the goods. The e-way bill expired at 11:59 PM, and the vehicle was intercepted at about 8:50 AM the next day, around 10 kilometres from the destination. Apart from the expiry of the e-way bill, no discrepancy was alleged. The delay in extending the validity of the e-way bill was stated to be about 50 minutes beyond the permissible eight-hour window due to a technical snag. Proceedings under Section 129 of the CGST Act were initiated, and a penalty equal to 200% of the tax was imposed, which was subsequently affirmed in appeal. The matter was placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that imposition of a penalty equal to 200% of the tax was harsh and disproportionate in the facts of the case. The e-way bill had expired only about 50 minutes earlier, the vehicle was intercepted about 10 km from the destination, there was no discrepancy in the goods or documents, and no allegation of intention to evade tax. The delay in extending the validity of the e-way bill was attributed to a technical snag. In these circumstances, the orders imposing and affirming the penalty were set aside. The Court directed that only a token fine of Rs. 10,000 be retained and the balance penalty be refunded.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2018%20Centax%20303%20(Cal.)&amp;itemType=AP\">Ashish Kumar Sharma v. Deputy Commissioner, State Tax<\/a> \u2014 (2024) 18 Centax 303 (Cal.) = 2024 (86) G.S.T.L. 414 (Cal.) \u2014 Referred [Para 13]<\/li>\n<li>Hindusthan Biri Leaves v. Asstt. Commissioner of State Tax, Bureau of Investigation \u2014 MAT No. 1847 of 2024, dated 9-9-2025 \u2014 Referred [Para 6]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2023)%208%20Centax%2072%20(Cal.)&amp;itemType=AP\">Progressive Metals Pvt. Ltd. v. Deputy Commissioner, State Tax<\/a> \u2014 (2023) 8 Centax 72 (Cal.) \u2014 Referred [Para 6]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Industrial Pumps &amp; Motors Agencies vs. State of West Bengal&hellip;<\/p>\n","protected":false},"author":19,"featured_media":9792,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-9781","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>200% GST Penalty Quashed for Brief e-Way Bill Expiry | HC<\/title>\n<meta name=\"description\" content=\"HC set aside a 200% GST penalty for a brief e-way bill expiry, holding it disproportionate where there was no intent to evade 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