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Case Details: Amit Mines (P.) Ltd. vs. Assistant Commissioner of State Tax - [2025] 177 taxmann.com 422 (Calcutta)

Judiciary and Counsel Details

Raja Basu Chowdhury, J.
Somnath Roy Chowdhury, Ms Sanjana Jha, Ms Sukanya Dutta, Avinash K. Jha & Partha Sathi Das for the Petitioner
Tanoy Chakraborty, Saptak Sanyal & Debraj Sahu for the Respondent

Facts of the Case

The assessee was engaged in the business of iron and steel. It had dispatched a consignment of sponge iron for delivery to the consignee. While in transit, the validity of the e-way bill expired, and the vehicle along with the goods was intercepted. The assessee obtained the release of goods upon payment of penalty as provided under section 129(1)(a). Aggrieved by the order, the assessee preferred an appeal to the appellate authority. However, the appeal was dismissed, and the penalty was upheld. The matter then reached the Calcutta High Court.

High Court Held

The High Court held that there was no allegation or material on record to show that the assessee was involved in willful misconduct while transporting goods. The penalty was imposed on the assessee despite the fact that the vehicle had suffered a breakdown. The appellate authority had brushed aside such contention by recording that the assessee had failed to file any supporting documents. Having regard to the case made out by the assessee in relation to the breakdown and attempts made to repair the same en route by a mechanic, ordinarily, documents may not be available. Further, taking note of the fact that there had been only a 15-hour delay, it was held that the penalty ought not to have been imposed.