Penalty Imposed for Non-Availability of Delivery Challans was Disproportionate As There Was No Tax Evasion | HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 8 December, 2023
Latest from Taxmann
Case Details: Prestress Steel LLP v. Commissioner, Uttarakhand State GST - [2023] 157 taxmann.com 112 (Uttarakhand)
Judiciary and Counsel Details
- Ravindra Maithani, J.
- Harshit Sanwal, Adv. for the Petitioner.
- Mohit Molekhi for the Respondent.
Facts of the Case
The assessee was engaged in business of manufacturing PC wires. It transported consignments using two vehicles and vehicles were intercepted by Revenue Authorities. It was found that the required delivery challans were not available and penalties were imposed. It filed writ petition and contended that the imposed penalties were illegal and disproportionate, as non-availability of delivery challans with vehicles was a procedural impropriety and did not involve tax evasion.
The Revenue Authority contended that procedural requirements could not be condoned as they are necessary to prevent fraud, escape, leakage, and administrative inconveniences.
High Court Held
The Honorable High Court noted that at the time of interception, the in-charge vehicles were not carrying delivery challans but the petitioner had generated e-way bills pertaining to both the vehicles. The Court further noted that it was not a case that the delivery challan was not taken with the intention to evade the tax.
Therefore, the Court held that the penalties imposed on assessee were disproportionate and could be rectified as an error as there was no evasion of tax and the Authorities should have proceeded under Section 122 instead of proceeding under Section 129 of GST Act, 2017.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
