No tax evasion can be presumed on mere non-extension of validity of e-way bill due to traffic blockage

Last updated: 08 December 2023

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Quick Summary

The Supreme Court has ruled that a business cannot be presumed to have evaded tax simply because an e-way bill's validity expired due to traffic blockages. The court found no intention to evade tax when goods were delayed for reasons beyond the assessee's control, such as traffic congestion caused by agitations. The Revenue Department was criticised for detaining goods and was ordered to pay significant costs to the assessee.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court of India in Assistant Commissioner ST & Ors. v. Satyam Shivam Papers Pvt. Ltd. [Special Leave to Appeal (C) No(s). 21132/2021 dated January 12, 2022] affirmed the judgment passed by the Hon'ble Telangana High Court and held that, tax evasion cannot be presumed on mere non-extension of validity of e-way bill by the assessee due to traffic blockage and agitation, for which the Revenue Authority is responsible for not providing smooth passage of traffic. Further, imposed a sum of INR 69,000/- on the Revenue Department towards the cost payable to the assessee, and to be recovered, directly from the persons responsible.

Citation :
Special Leave to Appeal (C) No(s). 21132/2021 dated January 12, 2022

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