Expiration of e-way bill and minor negligence will not amount to tax evasion

Last updated: 12 September 2022
Quick Summary
The Madhya Pradesh High Court has ruled that a minor delay in the expiry of an e-way bill, by a few hours, does not constitute tax evasion. The court ordered a refund of the penalty imposed on a contractor, stating that the delay was bonafide and lacked fraudulent intent or gross negligence. This decision highlights the importance of principles of natural justice and proportionality, as enshrined in Section 126 of the CGST Act, which advises against penalties for minor, easily rectifiable procedural errors.

Court :
Madhya Pradesh High Court

Brief :
The Hon'ble Madhya Pradesh High Court in M/S Daya Shanker Singh v. State of Madhya Pradesh [Writ Petition No. 12324 of 2022, dated August 10, 2022] directed the assessing authority to refund back the penalty charged from the assessee because of the mere expiration of the e-way bill just by few hours as it did not amount to tax evasion, fraudulent intent or gross negligence.�

Citation :
Writ Petition No. 12324 of 2022, dated August 10, 2022

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Bimal Jain
Published in GST
Views : 783
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