Mistake in part of Registration Number of Vehicle in e-way bill is a human error and it should not invoke penalty: High Court

Facts:

The petitioner dealer was making a stock transfer from its unit at Greater NOIDA depot to a sale depot at Agra.

The goods were being shifted through Truck No. HR-73/6755 which was accompanying delivery challan, e-way bill and bilty.

The mobile squad intercepted the goods and detained the vehicle in question along with the goods on the premise that in the e-way bill the vehicle number has been mentioned as UP-13T/6755.

Thereafter, a penalty order under Section 129(3) of the GST Act was passed. Against the said order, an appeal under Section 107 of the Act was preferred by the dealer. The said appeal was dismissed. Hence, the present writ petition.

Petitioner:

Learned counsel for the petitioner submitted that it was a case of stock transfer by the dealer from its unit at Gautam Buddha Nagar to sale depot at Agra. The goods which were in transit were accompanied by necessary documents and the e-way bill. The only mistake on the part of the person in-charge who had downloaded the e-way bill was wrong entry of the Vehicle No. UP-13T in place of HR-73. Except this fact the goods were being transported along with all the necessary documents. According to learned counsel, there was no intention to evade the tax on behalf of dealer.

Revenue:

Per contra, learned Standing Counsel submitted that the circular of the year 2018 issued by the Commissioner provides that in case of any mistake in entering details of the transporter in the e-way bill, one or two digit can be ignored by the taxing authorities, but where the entire digit as has been entered in the e-way bill is not matching with the vehicle in transit, the explanation afforded by the dealer cannot be accepted. He further contends that the registration number of vehicle through which the goods were in transit was HR-73/6755, while the number entered in the e-way bill was UP-13T/6755.

Held:

The sole controversy engaging the attention of the Court is as to whether the wrong mention of number of Vehicle No. HR- 73/6755 through which the goods were in transit and detained by the taxing authorities would be considered as a human error and will be covered under the circular No. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018, as the number mentioned in the e-way bill was UP-13T/6755 and the mistake is of only of HR-73 in place of U.P.-13T.

:

E-way Bill

:

Detention of Vehicle and Goods

:

E-way Bill

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