GSTAT Lucknow quashed a penalty for expired e-way bill, ruling that absence of tax evasion intent must be proven; mere document lapse is insufficient.
E-Way Bill Expiry Not Proof of Tax Evasion: GSTAT
The Goods and Services Tax Appellate Tribunal (GSTAT) in Lucknow allowed an appeal against a ₹1.57 lakh penalty imposed solely for e-way bill expiry. The Tribunal held that an expired e-way bill, without any additional evidence of tax evasion or misdeclaration, cannot justify penalties under Section 129 or Section 130 of the CGST Act.
The department had detained goods on the grounds of non-compliance, alleging intent to evade tax. The Tribunal noted that the taxpayer had filed GSTR-1 and GSTR-3B, paid applicable taxes, and the e-way bill lapse was procedural.
No mens rea or suppression was established, it observed, distinguishing between genuine administrative errors and deliberate evasion.
This decision offers relief to taxpayers facing confiscation or penalties for technical lapses. Authorities must now assess the broader compliance record before invoking stringent enforcement measures. Practitioners should highlight full tax compliance history when defending similar cases.
Citations
- CGST Act, 2017, Sections 129, 130
