Introduction:

In a significant ruling, the Calcutta High Court, presided over by Chief Justice T. S. Sivagnanam and Justice Supratim Bhattacharya, addressed the imposition of a 200% penalty under Section 129 of the WBGST Act in the case of expired e-way bills for goods destined for Bangladesh. The appellant contested penalties imposed by authorities, arguing that the e-way bill expired due to unforeseen circumstances, specifically a vehicle accident. The court delved into the intention behind the lapse and considered the export nature of the goods.

Arguments:

The appellant, represented by Rituraj Chakraborty, asserted that the accident caused a delay in generating a fresh e-way bill, emphasizing the subsequent issuance on June 15, 2022. The appellant highlighted the timely export to Bangladesh and contended that the penalty was excessively high. On the other hand, counsel for the respondent, T.M. Siddique, argued for the justification of penalties, citing the expired e-way bill as a violation of Section 129.

Court’s Judgement:

The court, acknowledging the accident and settlement, emphasized the absence of intent to contravene the Act. It deemed the 200% penalty unjustified, considering the lapse duration and the ultimate export of goods. The court’s ruling establishes that penalties should align with the gravity of violations and necessitates a departmental showing of intent for penalty imposition.