Calcutta High Court Quash Penalty for Minor E-Way Bill Delay for Plastic Firm


Calcutta High Court Quash Penalty for Minor E-Way Bill Delay for Plastic Firm
Oct, 2023


"Landmark Ruling Provides Relief for Businesses Over Trivial Compliance Issues.."

Calcutta, India The Calcutta High Court has made a landmark ruling that relieves businesses struggling with tax regulations. M/s Ishaan Plastics, a company that faced a penalty due to a minor delay in an e-way bill that expired 9 hours earlier, has been significantly relieved. The eWay Bill expired on December 27, 2022, at 11:59 p.m., and the vehicle in question was intercepted at 8:37 a.m. on December 28, 2022. There was a time gap of less than a day between the bill's expiration and the vehicle's interception. The company asserts that they had no intention of evading tax. Justice Md. Nizamuddin's bench also noted that the petitioner had no intention of evading tax. Therefore, the incident was a minor hiccup rather than an attempt at tax evasion.


GST maven CA Vikash Dhanania affirmed the ruling, stating that it is a groundbreaking judgment that indicates that the judiciary acknowledges the difference between an honest delay and a willful violation. The message is clear that while rules are essential, genuine errors made without any intent of tax evasion should not be met with undue penalty. He added that this compassionate approach is essential for fostering a positive business environment. It assures entrepreneurs that the legal framework is not just a punitive machine but also a system that understands and recognizes sincerity and honest endeavours.

Following this progressive ruling, the business community looks forward to a more practical, empathetic approach to minor compliance infractions. It reinforces the idea that while adherence to regulations is paramount, the Department Officer should be willing to consider the circumstances and intentions behind the violations.


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