The Calcutta High Court in the case Ishaan Plastics Pvt. Ltd. & Anr. Vs The Deputy Commissioner of State Tax Bureau of Investigation (South Bengal) Durgapur Zone & Ors observed and has directed the refund of the penalty in the case where there being the 9-hour time gap between the expiry of the e-way bill and the interception of the vehicle.
The bench headed by Justice Md. Nizamuddin in the case observed and has stated that there was no such intention of the petitioner to evade the payment of tax.
In the present case, the petitioner or assessee challenged the order of the appellate authority under the WBGST Act confirming the order of the adjudicating authority while imposing the penalty for transporting the vehicle in question after the expiry of the e-way bill.
However, the court observed that the e-way bill expired on 27.12.2022 at 11.59 p.m., and the vehicle in question was intercepted at 8.37 a.m. on 28.12.2022. thus, there being the time gap between the expiry of the bill and the interception of the vehicle in question of about 9 hours.
The court noted that it was less than a day, and the writ petitioner submits that there was no intention of any evasion of tax on the part of the petitioner.
The court while considering the facts and circumstances if the case observed and has disposed of the writ plea by setting aside the order of the appellate authority and adjudicating authority, and as a consequence.
Further, the court stated that the petitioner will be entitled to a refund of the penalty in question, subject to compliance with legal formalities.
Accordingly, the court disposed of the plea.
The counsel, Advocates, Ankit Kanodia, Megha Agarwal, Jitesh Sah appeared for the petitioner.
The counsel, Advocates, A. Ray, T. M. Siddiqui, T. Chakraborty represented the respondent.