📰 𝗖𝗮𝗹𝗰𝘂𝘁𝘁𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗡𝗼 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗼𝗻 𝗘𝘅𝗽𝗶𝗿𝗲𝗱 𝗲-𝗪𝗮𝘆 𝗕𝗶𝗹𝗹 𝗶𝗻 𝘁𝗵𝗲 𝗖𝗮𝘀𝗲 𝗼𝗳 𝗨𝘀𝗵𝗮 𝗠𝗮𝗿𝘁𝗶𝗻 𝗟𝘁𝗱. 📢 The court held, "Intentions matter more than actions, especially in cases of procedural lapses without tax evasion intent." 🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Usha Martin Limited vs The Deputy Commissioner of State Tax, Durgapur Range • 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀: MAT/1034/2023 and IA NO: CAN/1/2023, CAN/2/2023 • 𝗖𝗼𝘂𝗿𝘁: Calcutta High Court • 𝗗𝗮𝘁𝗲: 16-Jun-2023 𝗜𝘀𝘀𝘂𝗲: Usha Martin Ltd., a manufacturer and exporter, faced detention and a 100% tax penalty for transporting goods under an expired e-Way Bill. The goods were damaged during loading and returned to the factory for repairs, with a valid e-Way Bill indicating that no tax was due. However, the e-Way Bill expired in transit, leading the authorities to intercept the goods and impose a full tax and penalty. The appellant argued that this was an unintentional procedural lapse and appealed, ultimately challenging the levy in court when the expected GST Tribunal was not established.

𝗖𝗼𝘂𝗿𝘁’𝘀 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: The Calcutta High Court reviewed the circumstances and intent behind the expired e-Way Bill, emphasizing that there was no evidence of tax evasion. The court found that Usha Martin Ltd. acted in good faith, citing similar precedents where penalties were waived in cases of procedural delays without the intent to evade taxes.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The court set aside the 100% tax and penalty order, ruling that a genuine intent to follow tax procedures should be weighed against procedural lapses. Both the intra-court appeal and writ petition were allowed, with prior orders nullified.

📜 This judgment reinforces the principle that intent is essential in assessing penalties for procedural violations. It upholds taxpayer rights against disproportionate penalties in cases without intent to evade, providing clarity on handling expired e-Way Bills and similar lapses. Team GSTpanacea 7503031378