Abhishek Raja
Navigating the intricacies of the E-Way Bill (EWB) mandate can be tricky, especially when it comes to the often-confusing Part B. But fear not, dear reader! This guide unpacks the essential details of Part B and offers insightful case studies to help you avoid the dreaded penalty under Section 129(3) for non-filing.
In the Indian Goods and Services Tax (GST) system, the E-Way Bill (EWB) serves as a document accompanying the movement of goods exceeding ₹50,000 in value between states. For Intra-State movement, limit varies with state. This document is divided into two parts: Part A and Part B.
Part-B of the E-Way Bill focuses on the transportation details
- Transporter Information: This section requires details like the transporter's name, GST identification number (GSTIN), vehicle type, and vehicle registration number.
- Consignment Movement Details: This includes the expected time of departure, route details, and distance covered.
- Document Reference: This section allows referencing invoices, purchase orders, or other relevant documents associated with the goods.
- Additional Information: This section can be used for any additional details relevant to the transportation, such as reasons for delay or specific instructions for the transporter.
Filling Part-B is mandatory for
- Inter-state movement of goods: For the value of the goods exceeding Rs. 50,000/-, Part-B needs to be filled for any movement between states.
Exceptions to filling Part-B
- Short distance movement: If the distance between the consignor or consignee and the transporter is less than 50 kilometers within the same state, Part-B is not mandatory.
- Specific categories of goods: Certain categories of goods like handicrafts, exempted agricultural products, and newspapers may have specific rules regarding Part-B filling, depending on the state and value of the goods.
Importance of Part-B
- Tracking and verification: Part-B data allows authorities to track the movement of goods and verify compliance with GST regulations.
- Dispute resolution: In case of any discrepancies or disputes during transportation, Part-B information helps in verifying the details and resolving the issue.
- Data accuracy: Maintaining accurate information in Part-B ensures smooth transportation and avoids delays or disruptions due to inconsistencies.
The GST Department tries to levy penalties under section 129 (3) of GST Laws whenever they find any violation in Part-B of EWB but the Courts have held that every violation is not with intention to evade tax and should not lead towards penalty.
Here are few cases which would help you:
We find no ill intention at the hands of the Petitioner nor the Petitioner was supposed to fill up Part-B, giving all the details including the vehicle number before the goods are loaded in a vehicle, which is meant for transportation of the same to it end destination. Merely non-mentioning of vehicle number in Part-B cannot be a ground for seizure. Allahabad High Court in VSL Alloys (India) Pvt. Ltd. [(2018) 67 NTN 1]
The only allegation levelled against the petitioner leading to seizure of the goods was that Part-B of the e-way bill was not filled up. There is no allegation that the goods being transported were being transported without payment of tax. The explanation offered by the petitioner for not filling the Part-B of e-way bill, is clearly supported by the Circulars issued by the Ministry of Finance wherein the problem arising in filling the part-B of e-way bill was noticed and advisories were issued. In the present case, prima-facie no intent to evade the duty can be ascertained, only on the allegation that Part-B of the e-way bill was not filled. The writ petition is allowed with direction to the respondents to refund the amount collected and paid by the petitioner in pursuance to the impugned order. Allahabad High Court in City Retail Pvt. Ltd. vs The Commissioner Commercial Tax, UP [2022-VIL-628-ALH]
Non-filling up of Part 'B' of the e-Way Bill by itself without any intention to evade tax cannot lead to imposition of penalty U/s 129(3). When the Invoice itself contained the details of the truck and the error committed by the petitioner was of a technical nature only and without any intention to evade tax, there was no requirement to levy penalty U/s 129(3) of the Act. Allahabad High Court in Rawal Wasia Yarn Dying Pvt. Ltd. vs Commissioner Commercial Tax [2024:AHC:7493]
I hope you will find this write-up useful while contesting against penalty order under section 129 (3).
CAclubindia
