Tax demand order alleging e-way bill reuse quashed by HC and termed it as perverse and erroneous

Last updated: 31 March 2021

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Quick Summary

The Allahabad High Court has quashed a tax and penalty demand order against M/s. Anandeshwar Traders, which was based on allegations of reusing e-way bills. The court found the order to be perverse and erroneous because the revenue authorities failed to provide any evidence or reasons to establish tax evasion or the reuse of e-way bills. The court clarified that not cancelling an e-way bill within 24 hours of generation does not automatically imply reuse or lead to penalties.

Court :
Allahabad High Court

Brief :
The Hon'ble Allahabad High Court in M/s. Anandeshwar Traders v. State of UP [Writ Tax No. 503 of 2020 decided on January 18, 2021] held that the order demanding tax and penalty passed by Revenue under Section 129(3) of the Central Goods and Services Tax Act, 2017('CGST Act') is contrary to the provisions of the law and is perverse and erroneous on the basis that the Revenue had not recorded any reason to establish evasion of tax or attempt to evade tax or reuse of the e-way bill.

Citation :
Writ Tax No. 503 of 2020 decided on January 18, 2021

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