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

Last updated: 24 January 2022

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Quick Summary

The Supreme Court has ruled that a business cannot be presumed to be evading tax simply because the validity of their e-way bill expired due to traffic blockages or agitations. The court found that the responsibility lay with the revenue authority to ensure smooth passage of traffic. Consequently, the court upheld a High Court decision, ordered the refund of collected amounts with interest, and imposed costs on the revenue department for the unnecessary litigation.

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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