E-WAY BILL- Beneficial Provision of Reduced Penalty

E-WAY BILL- Beneficial Provision of Reduced Penalty

E-Way Bill is the short form of Electronic Way Bill. It is a unique document/bill, which is electronically generated for the specific consignment/movement of goods from one place to another, either inter-state or intra-state and of value more than INR 50,000, required under the current GST regime.

As per para 10 of circular 10 dt 31.05.2019 – where the movement of goods is accompanied by anyone of the basic document such as invoice/bill of supply/delivery challan etc indicating clearly tax related to particular transaction, a penalty up to Rs 5000/- shall be levied so as to deter the recurrence of offence.

An e-way bill had been generated on 12.01.2020 at 7:23 p.m., valid till 16.01.2020. However, the lorry had broken down on 13.01.2020 with major gearbox damage near Vellore and was thus lying in the garage. The lorry was intercepted at Vellore and detained for non-possession of valid e-way bill.

CGST Act, where any person transports any goods in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods.

 On payment of an amount equal to two per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty.

On payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent.

The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty

Some discussions took place on the phrase owner of the goods coming forward/not coming forward to pay tax and penalty and whether the phrase come forward could include an offer by the consignor to make the payment.

The petitioner submitted that the offence, in this case, is only the lapsing of the e-way bill, and that too for bonafide reasons, and this offence may not be viewed very harshly