HIGH COURT OF MADHYA PRADESH : BENCH AT INDORE
M/s Gati Kintetsu Express Pvt. Ltd. Vs Commissioner, Commercial Tax of MP & others
Gati, a Private Limited company engaged in the business of multi model transportation of shipments, supply chain management and other allied services, undertook a shipment from Pune (Wadki) to Noida via Indore. The conveyance was moved without updating the Part B of E Way Bill as required under Rule 138(5) of the M. P. Goods and Service Tax Rules, 2017.
As per Rule 138 of the Rules of 2017, any registered person who causes movement of goods or assignment valuation exceeding Rs.50,000/- must upload the information in a shape of e-way bill containing Part-A and Part-B. Sub-clause 5 of Rule 138 provides for updating the Part-B which contains the details about the vehicle and transporter.
M/S Gati claimed that due to technical error, Part-B of the e-way bill cannot be updated. Authority did not accept their contention. Further, authority stated that Portal provides for an option of grievance in case the Gati was having any problem in updating the Part-B of the e-way bill. No such proof of grievances is available with Gati. The learned council also stated that Gati is a national level courier company and engages the employees who are expert in uploading e-way bills. Moreover, this cannot be taken as minor mistake since the value of the goods is more than Rs. 1 Cr. The minor penalty can only be levied in cases where the tax is upto Rs.5,000/-.
The court finds that M/s Gati, admittedly violated the provisions of the Rules and Act and, learned Authority rightly imposed the penalty and directed Gati to pay the same.