No penalty u/s 129(3) of GST Act for non-filling of Part -B of the e-way bill due to technical glitch when there was no intention to evade payment of tax
In a recent judgment, Allahabad High Court has held that penalty under section 129(3) of the GST Act can not be levied for non-filling of Part -B of the e-way bill due to technical glitch when there was no intention to evade payment of tax.
ABCAUS Case Law Citation:
4848 (2025) (11) abcaus.in HC
In the instant case, the assessee had filed a Writ Petition challenging the penalty order under section 129(3) of the GST Act 2017.
The Petitioner was a proprietorship firm registered under the GST Act having a GSTIN and involved in the business of manufacturing and supply of goods. The goods in question were intercepted and seized by the GST Authorities only on the ground that Part B of the Eway bill accompanying with the goods was not generated thereafter the impugned penalty order was passed against which the petitioner.
The Petitioner submitted that at the time of interception of the vehicle in question, all the requisite documents were produced and the goods were found as per the description mention in the tax invoice.
It was further submitted that while passing the penalty order under section 129(3) of the GST Act, no reason has been assigned. He further submitted that Part – B of the e-way bill could not be filled due to some technical glitch. It was also stated that there was no intention to evade payment of tax. All other documents were duly filled, except Part – B of the e-way bill and the authorities had not whispered a word indicating intention of the petitioner to evade payment of tax.
In support of his submissions, the Petitioner placed reliance on the judgements of the Court.
The Hon’ble High Court observed that the stand of the petitioner was that due to technical glitch, Part – B of the e-way fill could not be filled, but there was no intention to evade payment of tax as well as none of the authorities below has recorded any finding with regard to intention to evade payment of tax.
The Hon’ble High Court noted that the Division Bench of the High Court had categorically held that non-filling of e-way bill will not attract penalty under section 129(3) of the GST Act. The same view had been reiterated in further decision. Further, the record revealed that due to technical error, Part – B of the e-way bill could not be filled, which had not been disputed at any stage.
The High Court held that there was no intention of the petitioner o evade payment of tax, which would amount to levy of penalty under section 129(3) of the GST Act.
Accordingly, the writ petition was allowed.
Download Full Judgment Click Here >>
- CCI inviting applications for engagement of Young Professionals (YPs)
- Penalty u/s 271D deleted as cash deposited belonged to father who had no bank account
- No penalty under GST Act for non-filling Part -B of e-way bill due to technical glitch
- Tax Authorities should charge legitimate taxes instead of punishing bonafide mistakes
- SEBI cautions public regarding dealing in ‘Digital Gold’ or ‘E-Gold’
