Legal provisions involved: Section 129 of the CGST Act, 2017 and GST rules relating to e-way bills.
Judgement by: Karnataka High Court.
Judge/Bench: Justice S.R.Krishna Kumar.
Facts
Goods being transported were stopped by GST officers because the vehicle number was not filled in Part-B of the e-way bill. Even though all other documents were proper and tax was not disputed, the authorities detained the goods and imposed a penalty. The transporter approached the High Court stating that the mistake was purely clerical and not done to evade tax.
Key legal provisions
Issues raised
Whether not mentioning the vehicle number in Part-B of the e-way bill is a serious violation attracting penalty or a mistake that can be corrected?
Arguments of the case
The transporter argued that the omission was accidental and caused no loss to revenue. The GST department argued that filling Part-B is mandatory and non-compliance justifies penalty.
Judgement
The Karnataka High Court ruled that missing vehicle details in Part-B is a curable defect. It held that minor mistakes without intent to evade tax should not lead to detention or penalties. The Court stressed that GST law should promote ease of doing business and not punish genuine traders for small errors.
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