CA Aman Rajput
Quick Summary
Introduction In a significant decision, the Allahabad High Court, in the case of Vacmet India Ltd. v. Additional Commissioner Grade-2 (Appeal), delivered a judgment on October 17, 2023, challenging the imposition of a penalty on the petitioner-assessee for a technical breach related to an E-way b
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FAQ :
The main issue was the imposition of a penalty on Vacmet India Ltd. for a technical breach in their E-way bill, specifically the omission of Part-B.
The Allahabad High Court quashed the penalty order, stating that penalties should not be imposed when there is no intention to evade tax and the breach is promptly rectified.
The E-way bill was missing Part-B, which was a procedural error attributed to the transporter, and was promptly updated by the petitioner.
The judgment signifies that mere technical breaches in E-way bills, particularly those that are promptly corrected and lack intent to evade tax, should not result in penalties.
Yes, the court noted that the goods were raw materials being sent as a stock transfer between units, and questioned the tax liability for such intra-state transfers without intent to evade tax.
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