In a recent judgment, the Allahabad High Court ruled that it is compulsory for businesses to fill Part B of the E-Way Bill for transactions taking place after April 2018.
The case involved M/s B M Computers, a GST-registered dealer engaged in selling computers and hardware. The company transferred goods from its Agra headquarters to its Ghaziabad branch, issuing two invoices and generating corresponding E-Way Bills. However, during transit, their vehicle was intercepted at Greater Noida, and authorities found that Part B of the E-Way Bill was not filled properly.
Following the interception, a show-cause notice was issued. Although the petitioner responded, the Assistant Commissioner passed a penalty order under Section 129(3) of the U.P. and Central Goods and Services Tax Acts, 2017. The petitioner paid the penalty to get their vehicle released but later challenged the penalty order and the appellate order that confirmed it.
The petitioner's counsel argued that all necessary documents were present except for Part B of the E-Way Bill, claiming it was a human error by the transporter. They relied on earlier judgments, like M/s. Varun Beverages Ltd. and M/s. Falguni Steels, where the Court had ruled in favor of businesses even if Part B wasn’t filled, emphasizing no intention to evade tax.
However, the State's counsel opposed this, pointing out serious issues:
- One E-Way Bill showed the goods were traveling from Agra to Agra, while in reality, they were moving from Agra to Noida.
- Part B was generated after the vehicle was caught, suggesting an intention to manipulate records.
The Court noted:
"It is mandatory on the part of the seller to download the complete E-Way Bill once the goods are put in transit. Only downloading Part A and not filling Part B would not absolve liability under the Act."
Justice Rohit Ranjan Agarwal, relying on previous judgments like M/s. Akhilesh Traders and M/s. Jhansi Enterprises, emphasized that after the 14th Amendment to the GST Rules (effective from April 1, 2018), filling the complete E-Way Bill became compulsory. Courts have also recognized that post-April 2018, technological hurdles in generating E-Way Bills were resolved.
The Court highlighted:
"Mere furnishing of documents after interception cannot justify the absence of intention to evade tax."
Furthermore, the Court cited Rule 138 of the GST Rules, which requires that both Part A and Part B of the E-Way Bill must be completed before goods move.
Given the facts that the petitioner generated Part B only after interception and also misrepresented the transportation details, the Court concluded that there was a clear intention to evade tax. Consequently, the writ petition was dismissed.
Case Title: M/S B M Computers v. Commissioner Commercial Taxes And 2 Others [WRIT TAX No. - 1559 of 2024 ]
