E WAY BILL VALIDITY

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An e-way bill expired due to a vehicle service delay, leading to penalties from GST officials. The client paid the penalty and is seeking to appeal for a refund. Recent Supreme Court rulings suggest that proving intent to evade tax is necessary for penalties, implying that bonafide lapses without such intent might be grounds for a refund, though litigation is likely.

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)

13 May 2022 One of our client logistic operator picked goods from Destination on Sunday morning. The dealer generated Eway bill on Saturday night 9 PM. The validity of the eway bill is 24 hours. Due to vehicle service the driver moved the goods after service. The Eway bill validity expired. The GST officials verified on the way and imposed penalty two times of the tax dues. The delivery company also holiday on sunday. The operator paid the entire penalty. Can we file appeal for refund. Please let me know the any case reference in favour of assessee.
Regards
SR

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

13 May 2022 This matter belongs to Expiry of the e-waybill, you must update Revalidation of said e-waybill.
must see detention order In the case of Ram Charitra Ram Harihar Prasad Vs State of Bihar (Patna High Court) WP No.11221 of 2019

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)

13 May 2022 The validity time also expired while the GST officials verification. The driver not aware in this regard.

Lekhraj sood

Lekhraj sood (Expert)

14 May 2022 It will depend on the facts of the case. In case recently, Hon'ble SC has held that the intention to evade tax has to be proved for levying penalty where the validity of ewaybill had expired.
This appears a bonafide lapse without any wrong intentions, so you can file the refund but it will go into litigation and you should consider this.

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