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2024 (5) TMI 920 - ALLAHABAD HIGH COURTImposition of tax and penalty u/s 129(3) of the Uttar Pradesh Goods and Services Act, 2017 - expired e-way bill - e-way bill had expired nine hours and thirty minutes prior to interception - sufficient reason for delay in extending time period of the e-way bill - mens rea to evade tax or not - HELD THAT:- This Court in M/S. HINDUSTAN HERBAL COSMETICS VERSUS STATE OF U.P. AND 2 OTHERS [2024 (1) TMI 282 - ALLAHABAD HIGH COURT] and M/S FALGUNI STEELS VERSUS STATE OF U.P. AND OTHERS [2024 (1) TMI 1150 - ALLAHABAD HIGH COURT] held that mens rea to evade tax is essential for imposition of penalty. The factual aspect in the present case clearly does not indicate any mens rea whatsoever for evasion of tax. The goods were accompanied by the relevant documents and the explanation of the petitioner with regard to slow movement of the goods clearly indicate that the truck had broken down resulting in delay. This factual aspect should have been considered by the authorities below. The breach committed by the petitioner with respect to not extending time period of the e-way bill is only a technical breach and it cannot be the sole ground for penalty order being passed under Section 129(3) of Act. The finding of the authorities with regard to intention to evade tax is not supported by the factual matrix of the case, and accordingly, the impugned order dated February 27, 2020 passed by the Assistant Commissioner and the order dated November 27, 2020 passed by the Additional Commissioner are quashed and set aside. Petition is allowed.
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