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TaxReply India Pvt Ltd
17 Sep, 2025 11:24 AM   9.52k

Expired E-way Bill Alone Insufficient To Justify 200% Penalty: High Court

Sole Ground of Expired E-way Bill Without Any Other Allegation Does Not Justify 200% Penalty: Rules High Court

Case Summary:

The Court allowed the intra-Court appeal and writ petition, holding that the sole grievance - an expired e-way bill - did not justify a mechanical 200% penalty. Finding the delay resulted from traffic blockage, with no evidence of intent to evade tax and noting statutory provision allowing an 8 hour extension, the Court concluded the penalty was excessive. Orders of the assessing and appellate authorities were set aside. The Department was directed to refund the penalty upon receipt of an application within eight weeks. No costs were awarded, and an urgent certified copy of the order was to be provided on compliance with formalities.

The appellants had ordered Biri leaves from a supplier in Chhattisgarh, and an e-way bill was generated for the transport of the goods to West Bengal. However, the goods were intercepted after the e-way bill expired, leading to the imposition of a 200% penalty on the appellants on the basis of the expired e-way bill alone, without any additional discrepancies being noted by the Department.

Key aspects discussed in the Judgment include:


(Watch in Hindi)

1. Challenge to Penalty: The appellants challenged the penalty order as being unjust, based on the sole ground of expiry of the e-way bill. The appellants argued the delay occurred due to a traffic blockage, and thus, there was no intent to evade tax.

2. Legal Precedents: The appellants cited previous decisions, including once case of Supreme Court, which underscored the inequity of penalties solely based on expired e-way bills when delays occur due to unforeseen circumstances.

3. Rule 138: As per Rule 138, transporters are allowed an 8-hour grace period to extend an e-way bill. Considering this, the actual delay by the appellants’ transporter was calculat.......

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Author's Details:
Author

CA Mohit Jain

Qualification Chartered Accountant, M.Com
Experience 15+ Years Experience in Taxation
Mobile (+91) 8383842726
Email mohit@taxreply.com
Published on 17 Sep, 2025
Last Edited on 17 Sep, 2025 11:24:33 AM
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Comments


Good judgement, ensures Bonafide Right to fairness and justice.
By: Pawan Chaudhary
Sep 18, 2025
Those trucks are running with valid e-way bill, why sum officer's block those trucks and hearess driver's or owner's and telling for verification, without any idea of mejarment, and how any cost fine the vehicle. I am very sad for this bad system.
By: Kousick Sana
Sep 18, 2025


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