EWB CLERICAL ERROR WE GOT NOTICE ISSUE IN STATE

[MUTHUKUMARAN K]

FY 2020-2021 Importer raised two E-Way bill wrongly mention transporter name instead of supplier name in PART-A. Now December 2024 Transporter got a Show Case Notice from State Commercial Tax Office for different on turnover between EWB and GSRT-1. Transporter clearly explain and submit EWB and Bill of Entry with duty payment challan. But they issued order under section 73. Transporter submit all documents through application for rectification of order but they can't accept and reject. Now they told apply appeal with 10% pre deposit Aprox Rs.100000/- .

Any body pls advise how to solve this issue.

K.MuthuKumaran

Chennai.

[Sadanand Bulbule]

While concluding adjudication under Section 73, there is no provision to levy penalty for defective E-way bills. Find out under what section such penalty is levied. In terms of Section 161, you may apply for rectification of error apparent on the impugned order. However you have to establish the error properly and file application within three months from the date of communication of the order issued under Section 73.

[MUTHUKUMARAN K]

Sir thanks for your reply.

we got notice section 61, 73 and 50 of the TNGST Act 2017.

as per your advise file the application means Appeal or Rectification of Order.

K.Muthu Kumaran

Chennai

[Sadanand Bulbule]

Application for rectification of error, if any, under Section 161 is to be filed within three months from the date of communication of order. Otherwise appeal is to be filed under Section 107 within three months and additional one month with condonation of delay

[Sadanand Bulbule]

Is penalty levied under Section 122 for defective E-Way Bills along with adjudication order under Section 73?

[YAGAY andSUN]

Legal Advisory Note on E-Way Bill Error and Adjudication under Section 73 of the TNGST Act, 2017

Factual Background:

1. An importer during FY 2020–21 had generated two E-Way Bills wherein, by inadvertent error, the name of the transporter was wrongly mentioned in Part-A in place of the supplier's name.
2. In December 2024, the said transporter received a Show Cause Notice (SCN) from the State Commercial Taxes Department alleging a discrepancy in turnover between the E-Way Bill (EWB) data and the GSTR-1 returns filed.
3. The transporter duly submitted a reply along with supporting documents including:
   • The erroneously generated E-Way Bills.
   • Bill of Entry evidencing the import.
   • Duty payment challans.
4. Notwithstanding the above, the Department proceeded to pass an order under Section 73 of the TNGST Act, 2017, allegedly confirming demand and imposing penalty.
5. The transporter then filed an application for rectification under Section 161 on the grounds of an error apparent on the face of record, which was summarily rejected.
6. The Department advised filing an appeal under Section 107 with a mandatory pre-deposit of 10% of the disputed amount, approximately ₹1,00,000.

Legal Position and Relevant Provisions:

1. Section 73 – Determination of Tax Not Paid or Short Paid Without Fraud, etc.:
   • This section pertains to tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, for any reason other than fraud or willful misstatement or suppression of facts.
   • It does not provide for imposition of penalty in cases of technical or clerical errors in E-Way Bills unless such errors result in tax evasion or suppression of turnover.
2. Penalty for Defective E-Way Bills – Section 122 of the TNGST Act, 2017:
   • Any person who transports goods without proper documents, including defective or incomplete E-Way Bills, may be penalized under Section 122(1)(xiv).
   • However, this applies only when there is intent to evade tax or transport without authorization/documentation.
   • Mere incorrect mention of a transporter in Part-A of the EWB, when duty-paid import documents and genuine supplier information are on record, does not constitute an offence under Section 122.
3. Section 161 – Rectification of Errors Apparent on the Face of Record:
   • Permits correction of any error apparent on the face of the record by the adjudicating authority within 3 months from the date of communication of the order.
   • An "error apparent" refers to a clerical or arithmetical mistake, or an undisputed factual error, not requiring elaborate arguments or re-appreciation of evidence.
   • Given the clerical error in the EWB and availability of conclusive documentary evidence (Bill of Entry, challans), Section 161 rectification ought to have been entertained.
4. Section 107 – Appeals to Appellate Authority:
   • If rectification under Section 161 is rejected, the aggrieved person can file an appeal under Section 107 within:
     • 3 months from the date of communication of order.
     • 1 additional month with condonation of delay (if sufficient cause shown).
   • A pre-deposit of 10% of the disputed amount is mandatory for admission of appeal.

Conclusion and Recommendation:

• No Penalty under Section 73 can be levied merely due to clerical errors in E-Way Bills where no suppression, fraud, or evasion is involved.
• Section 122(1)(xiv) may be invoked only where the movement of goods was without documents or with intent to evade tax, which is not applicable in the present facts.
• The order passed appears to be perverse and in violation of principles of natural justice, especially when all documentary evidence was produced.
• Since the application under Section 161 was rejected, the only remedy now available is to prefer an appeal under Section 107 of the TNGST Act, 2017.
• Ensure that the appeal is filed within the prescribed period, along with the statutory pre-deposit of 10%.
• In the appeal grounds, clearly plead:
  • Clerical nature of the E-Way Bill error.
  • Production of valid import documents and tax payment evidence.
  • Misapplication of Section 73 and 122, if invoked.
  • Denial of rectification despite being a clear error apparent.

Suggested Action Plan:

1. File a formal appeal under Section 107 along with Form GST APL-01.
2. Deposit 10% of the disputed amount under protest.
3. Attach all supporting documents:
   • Copy of the impugned order.
   • Rejected rectification application.
   • Bill of Entry, duty challans, copy of correct EWB, and a comparative table.
4. Plead for setting aside the order and seek refund of the pre-deposit upon favorable disposal.

***

[KASTURI SETHI]

Dear Querist,

                      Are you  fully sure that it is a clerical error or typographical error? SCN has been issued to the transporter.  The possibility of involvement of some other factors cannot be ruled out. 

               Now the best option is to file   appeal with pre-deposit.  In case the transaction is genuine,  avail the opportunity of defending yourself with all documentary evidences in your support  before the Appellate Authority.  

[Shilpi Jain]

Should proceed for the appeal with proper documents to prove that no supply has been made by the transporter.

Approaching HC may be chosen considering the cost involved, in such case there would be no requirement to pay any pre-deposit.

[Shilpi Jain]

One must also consult a professional to check if this is a fit case to approach HC before taking this decision. This will depend on the facts of the case and the documents at hand.

[MUTHUKUMARAN K]

Thanks for your valuable support.

Order issued date is 24/02/2025

4. Details of demand :- (Amount in Rs.)
Sr. No	Tax Rate (%)	Turnover	Tax Period		Act	POS (Place of Supply)	Tax	Interest	Penalty	Fee	Others	Total
			From	To
1	2	3	4	5	6	7	8	9	10	11	12	13
1	0	0.00	APR 2020	MAR 2021	CGST	NA	2,59,963.00	1,94,353.00	25,996.00	1,350.00	0.00	4,81,662.00
2	0	0.00	APR 2020	MAR 2021	SGST	NA	2,59,963.00	1,94,353.00	25,996.00	1,350.00	0.00	4,81,662.00
Total							5,19,926.00	3,88,706.00	51,992.00	2,700.00	0.00	9,63,324.00

how to calculate 10% on pre deposit with interest and penalty ?

also guied the process of appeal and how to claim refund the pre deposit.

with regards

K.Muthu Kumaran

[YAGAY andSUN]

As per Section 107(6) of the Central Goods and Services Tax Act, 2017, any taxpayer intending to file an appeal against an adjudication order before the Appellate Authority is required to make a mandatory pre-deposit. This pre-deposit consists of two components: first, 100% of the admitted tax liability (if any), and second, 10% of the disputed tax amount. It is important to note that this 10% pre-deposit applies only to the disputed tax component and not to the interest, penalty, late fees, or any other charges included in the order. Furthermore, the maximum limit of the 10% pre-deposit under each Act (CGST/SGST) is Rs. 25 crore.

In your case, the order dated 24/02/2025 relates to the tax period from April 2020 to March 2021, and the demand raised includes CGST and SGST tax amounts of Rs. 2,59,963 each, totaling Rs. 5,19,926 as the disputed tax. Along with this, interest of Rs. 3,88,706, penalty of Rs. 51,992, and a fee of Rs. 2,700 have also been levied, bringing the total demand to Rs. 9,63,324. However, for the purpose of filing an appeal, the relevant pre-deposit is limited to 10% of the disputed tax component, which amounts to Rs. 51,993 (10% of Rs. 5,19,926, rounded up). No pre-deposit is required for the interest, penalty, or fee amounts.

To file the appeal, you must log in to the GST portal and navigate to “My Applications” under the “User Services” section. There, you should select the application type “Appeal to Appellate Authority (Form GST APL-01)” and proceed to fill in the necessary details, including the reference number of the demand order and the grounds of appeal. You must upload a self-certified copy of the order (if not already uploaded by the tax officer) and the proof of payment of the 10% pre-deposit, which should be made via challan in Form GST PMT-06. The appeal must be filed within three months from the date of the order (i.e., by 24/05/2025), with a possible extension of one additional month at the discretion of the Appellate Authority.

In the event that the appeal is decided in your favour and the tax demand is either fully or partially quashed, you are entitled to claim a refund of the pre-deposit amount. This can be done by filing Form GST RFD-01 through the GST portal, selecting the refund category “Excess payment of tax – Others.” Supporting documents such as the appellate order copy, proof of pre-deposit payment, and a declaration regarding non-passing of tax incidence (to meet the test of unjust enrichment) must be submitted along with the refund application. The department is required to process and issue the refund within 60 days of submission of a complete application.

Should you require assistance in drafting the grounds of appeal or preparing the appeal and refund documents, professional help is recommended to ensure procedural compliance and accuracy.

[MUTHUKUMARAN K]

Yes i need a help for appel and get refund process. How much of cost for inform to our owner and confirm.

with regards

K.Muthu Kumaran

[YAGAY andSUN]

Provide your e-mail through Personal Message or contact us on yagayandsun@gmail.com, we will send the quote for filing of an Appeal.

[MUTHUKUMARAN K]

Dear Sir / Madam,

14.06.2025 we submited form of Appeal. What next process.. pls advise