2025 (5) TMI 304 - HC - GST

Imposition of penalty under Section 129(3) of the U.P. GST Act 2017 - Non-filling of part-B of the e-way bill - tax evasion - violation of provisions of Rule 138 of the G.S.T. Rules 2017 - HELD THAT - A perusal of the order impugned passed by State Tax Officer Ghaziabad would reveal that except for noticing violation of provisions of Rule 138 on account of non-filling up of part-B of eway bill not a word has been indicated pertaining to any attempt to evade tax. In view of the series of orders passed by this Court laying down that unless an attempt is made to evade tax and a finding in this regard is recorded mere non-filling of part-B of e-way bill would not attract penalty under Section 129 of the Act the order impugned passed by the respondents cannot be sustained. Consequently the petition is allowed . The order dated 20.01.2025 passed by the State Tax Officer Ghaziabad is set aside.

Summary

The Allahabad High Court, in a writ petition challenging the penalty imposed under Section 129(3) of the U.P. GST Act, 2017, held that mere non-filling of part-B of the e-way bill constitutes only a "technical breach" and does not, by itself, justify penalty absent a recorded finding of "intention to evade tax." The Court relied on its precedent in *M/s Precision Tools India vs. State of U.P.*, Writ-Tax No. 415 of 2023, emphasizing that "unless an attempt is made to evade tax and a finding in this regard is recorded, mere non-filling of part-B of e-way bill would not attract penalty under Section 129 of the Act." Noting that the impugned order did not indicate any tax evasion attempt, the Court set aside the penalty order dated 20.01.2025 and directed refund of the penalty deposited under protest within three weeks.