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

Last updated: 12 September 2022

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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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1999

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3499

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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