Case Title: Balaji Steel Rolling Mills Ltd. v. State of Tripura
Court Name: High Court of Tripura
Petition Number: WP(C) No. 548 of 2021
Category of Dispute: E-Way Bill Expiry – Penalty and Levy
Date of Judgement: 3 January 2023
Relevant Sections: Section 129 of the CGST Act, 2017
Type: Refund and Penalty Dispute
Facts of the Case
[Para 1] The petitioner, Balaji Steel Rolling Mills Ltd., had imported two lots of mill machinery using two trucks. The ‘e-Way bills’ for the movement were generated on 2-2-2020 and valid until 15-2-2020. Due to unforeseen delays, the trucks reached Churaibari check-post on 17-2-2020, by which time the e-Way bills had expired. Despite no evidence of tax evasion and goods being duty-paid, the authorities detained the goods and imposed tax and penalty.
[Para 1] A prior writ petition filed in 2020 was disposed of with directions for release upon partial deposit (25%) and bond submission, and extension of limitation period for appeal.
[Para 2] The petitioner then filed appeals before the Additional Commissioner of State Tax which were dismissed on 16-4-2021.
[Para 3-4] Aggrieved, the petitioner challenged the dismissal order in this writ petition claiming the penalty was arbitrary and unjustified since there was no intent to evade tax.
Question(s) in Consideration
[Para 3] Whether the penalty and tax levied under Section 129 of CGST Act for mere expiry of e-Way bill, despite no intent to evade tax, was legal and justified?
Observation of the Court
[Para 6] The High Court noted that the e-Way bills had expired during the transit, and the petitioner was unable to renew them due to the vehicle already entering the State of Tripura.
[Para 6] The Court observed that the imposition of duty and penalty solely due to expiration, without considering the absence of intent to evade tax, was not in the interest of justice.
Judgement of the Court
The writ petition was allowed.
The impugned appellate order dated 16-4-2021 was set aside.
The petitioner was declared entitled to all consequential benefits, including refund.[Para 7]
The matter was disposed of accordingly. [Para 8]
Between Fine Lines
The High Court reaffirmed that procedural lapses like delay in transit causing expiry of e-Way bill, without any intent to evade tax, should not attract harsh penalties. It ruled in favour of a just and equitable application of tax law, granting refund and setting aside arbitrary levy.
Summary of Referred Cases
| Case Name | Citation | Summary | Verdict |
| Balaji Steel Rolling Mills Ltd. v. State of Tripura (2020) | [2021] 123 taxmann.com 368 (Tripura) | Interim relief granted allowing release of goods upon 25% deposit and bond execution | Interim relief granted |
Takeaway:
“Expired e-Way Bill ≠ Tax Evasion: Substance Over Form in Transit Compliance”
