Technical E-Way Bill Error in Bill-To-Ship-To scenario is Not Grounds for Penalty ~ Allahabad High Court
Zhuzoor Infratech Private Limited vs Additional Commissioner Grade 2
[WRIT TAX No. - 830 of 2024; 14-Feb-2025 :: 2025:AHC:21395]
Facts of the Case:
• Assessee (a registered dealer) had received an order for TMT Bars from a Delhi entity.
• The Assessee placed an order on a Jharkhand-based manufacturer with instructions that the goods invoice be in Assessee’s name but the shipment be delivered to Delhi.
• On 14.12.2022, an e-tax invoice and automatically populated e-way bill were generated, valid until 16.12.2022.
• The goods were intercepted en route for showing West Bengal as the “shipping address” in the e-way bill, whereas the tax invoice reflected New Delhi.
Issue
• Whether the discrepancy in the e-way bill shipping address (a “technical error”) justifies seizure and penalty under “the Act.”
Assessee’s Ground of Appeal
• The difference in shipping address was a mere technical glitch because the e-way bill had been auto-populated, and no mismatch existed in the goods’ quantity or tax invoice details.
• Court JudgmentReasoning: The Court observes that e-way bills are generated to track movement of goods so that no tax liabilities escape. A mere discrepancy in the “shipping address” that arises from auto-population does not invalidate the transaction if quantity/quality match and there is no attempt to evade.
Conclusion:
• Seizure and penalty are quashed, and any deposited amount is to be refunded.
• This judgment reinforces that minor technical discrepancies in e-way bills do not attract penal actions where genuine transactions are evident.