Home GST Penalty U/S 129 of GST Act Can’t Be Imposed If Truck Moving Slowly Due to Technical Fault

Penalty U/S 129 of GST Act Can’t Be Imposed If Truck Moving Slowly Due to Technical Fault

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Penalty U/S 129 of GST Act Can’t Be Imposed If Truck Moving Slowly Due to Technical Fault

Allahabad HC's Order for M/S Riadi Steels Llp

Allahabad Excessive Court docket, when the GPS monitoring system shows the gradual motion of the truck as a result of mechanical issues within the engine then the penalty beneath Part 129 of the Items and Service Tax Act, 2017 can not have been levied for not extending the interval within the e-way invoice. The Court docket held that not extending time for these issues was a technical violation.

Throughout the interception of products by the applicant, the GST e-way invoice lapsed for 4 days. Petitioner’s counsel claimed that as of overheating of the engine of the truck, the driving force was driving slowly and intermittently stopping. On the GPS of the truck, reliance was positioned to point out that it was travelling on the unique route.

Respondent’s counsel requested that as there was a breach of guidelines for the e-way invoice, the penalty was accountable to be levied on the applicant.

Laying on its former selections in M/s Hindustan Natural Cosmetics v. State of U.P. and Others and M/s Falguni Steels v. State of U.P. and Others, the Court docket said that intent to evade tax is required for levying the penalty beneath Part 129 of the GST Act. as there was no intent to evade tax, the Court docket said that penalty might be sustained on this matter.

“The products have been accompanied by the related paperwork and the reason of the petitioner with regard to the gradual motion of the products coupled with the GPS monitoring system clearly signifies that the truck was shifting slowly as a result of mechanical fault within the engine of the

car. This factual facet ought to be thought-about by the authorities beneath. The breach dedicated by the petitioner with respect to not extending time interval of the e-way invoice is simply a technical breach and it can’t be the only real floor for a penalty order being handed beneath Part 129(3) of Act,” Justice Shekhar B. Saraf stated.

Consequently, the writ petition was permitted.

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