Penalty Order was Overturned by the High Court Because the Vehicle Number was Updated in Part B of the GST e-way bill, but not in the Bilty.
The Allahabad High Court, in case of Abhishek Sales vs State of UP [Writ Tax No. 7/2020], made a significant ruling regarding penalty for vehicle number change in e-way bill when goods in transit, stating that the vehicle number on the bilty (consignment note) cannot be changed when there is a vehicle breakdown.
The penalty order was overturned by the high court because the vehicle number was updated in Part B of the GST e-way bill, but not in the bilty.
The petitioner’s goods were intercepted, leading to a penalty under section 129(3) of the Uttar Pradesh Goods and Services Tax Act.
The court clarified that when a vehicle breaks down and is replaced, the vehicle number cannot be altered on the bilty. Therefore, the penalty was deemed unjust since the updated vehicle number was correctly reflected in Part B of the e-way bill.
The petitioner’s counsel argued that the goods were transferred to a new vehicle due to the breakdown, and the updated vehicle number was duly revised by the transporter in Part B of the GST e-way bill.
The high court also noted that there was no discrepancy between the goods and the e-way bill, as the necessary updates were made to reflect the change in the vehicle.
Upon reviewing the documents, it was evident that Part B of the e-way bill was amended due to the vehicle replacement. The court emphasized that when a vehicle is changed, the vehicle number on the bilty cannot be altered, especially when the goods are in transit.
Justice Shekhar B. Saraf ruled that the initial penalty order was unfounded and dismissed the case.
This ruling by the Allahabad High Court sets an important precedent for cases involving vehicle breakdowns during the transportation of goods, clarifying the procedure for updating vehicle information on e-way bills and not in the bilty in such situations.
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