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MOHAMMAD SHAMASHER VERSUS THE STATE OF WEST BENGAL & ORS.

Issue  The case involved the detention of an escalator machine (JCB), with a penalty of 200% of the GST tax payable.

The details stated in the e-way bill did not align with those on the delivery challan. Specifically, the name and address of the individual releasing the goods did not match the information provided in the e-way bill.Due to these discrepancies in the documents, the respondent authorities concluded that the petitioner transported the machine, thereby contravening legal provision

Decision Upon review, the Court found that, there was a valid e-way bill supporting the transportation. Recognizing the necessity of possessing all required documents is the requirement of law, the Court also noted the absence of any intention to evade taxes.

As a result, the imposition of such a high penalty was deemed disproportionate and contrary to legal provisions. The High Court has instructed the adjudicating authority to reassess the issue.

2024 (2) TMI 288 – CALCUTTA HIGH COURThttps://www.taxmanagementindia.com/visitor/Detail_Case_Laws.asp?ID=449137