- Goods were transported for export under a Letter of Undertaking, making it a zero-rated supply.
- Delay and e-way bill expiry were due to vehicle breakdown and Diwali festival, with all proper documentation available.
- Penalty was imposed solely because the e-way bill expired, ignoring the export nature and zero tax liability.
- Penalty computation depends on tax payable, and no tax was payable in this zero-rated case.
- Court reduced the penalty to Rs. 25,000, emphasizing that procedural lapses without revenue loss should not incur harsh penalties.
- Case: Gujarat HC – Marcowagon Retail P. Ltd. v. Union of India.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
