GST / Indirect Tax : High Court Directs Department to Refund the Penalty Amount under SGST Act, 2017

GST / Indirect Tax : High Court Directs Department to Refund the Penalty Amount under SGST Act, 2017

In a recent judgment, High Court has quashed the Tax Department's order and issued directions to refund the amount. 

In this case, the goods were intercepted and seized by Department and penalty was imposed by Department. Issue centred around filling part of E-way Bill.

Penalty under S.129 (3) of GST Act, 2017

The issue involved in the present case is with regard to penalty under section 129(3) of the UPGST Act, 2017 on the basis of non-filling of Part -B of the e-way bill. The record shows that the stand of the petitioner was that due to technical glitch, Part - B of the e-way fill could not be filled, but there was no intention to evade payment of tax as well as none of the authorities below has recorded any finding with regard to intention to evade payment of tax. The Division Bench of Court in M/s Tata Hitachi Construction Machinery Company Private Limited has categorically held that non-filling of e-way bill will not attract penalty under section 129(3) of the GST Act. The same view has been reiterated by Court in M/s Citykart Retail Private Limited (supra) and M/s Roli Enterprises (supra). Further, the record revealed that due to technical error, Part - B of the e-way bill could not be filled, which has not been disputed at any stage.

Intention to Evade Tax

There was no intention to evade payment of tax, which would amount to levy of penalty under section 129(3) of the GST Act. Consequently, Order of penalty was quashed. 

For more details refer Archana Plasmould v. State of UP [2025] GCtR 1705 (Allahabad).