Mere Expiry of E-Way Bill Without Intent to Evade Tax Cannot Justify 200% Penalty

Last updated: 29 July 2026

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The Calcutta High Court has ruled that a hefty 200% penalty cannot be imposed simply because an e-way bill expired during transit. The court emphasised that for such a penalty to be justified under Section 129 of the WBGST Act, there must be clear evidence of an intention to evade tax. In this case, the goods were genuinely being transported, and the delay was minimal, leading the court to deem the penalty disproportionate and order a refund of the excess amount paid.

Court :
Calcutta High Court

Brief :
The Hon’ble Calcutta High Court in the case of Industrial Pumps & Motors Agencies & Anr. vs. The State of West Bengal & Ors. [WPA 28356 of 2024, order dated April 16, 2026] held that mere expiry of e-way bill, in absence of any intention to evade tax and where transportation documents were otherwise genuine, cannot justify imposition of harsh penalty under Section 129 of the WBGST Act, 2017.

Citation :
WPA 28356 of 2024, order dated April 16, 2026

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_6049_industrial_pumps_motors_agencies_anr.pdf

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Judgement posted by

Bimal Jain

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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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