Rejection of Appeal is invalid if vehicle breaks down and new e-way bill prepared post interception

The Hon'ble Calcutta High Court in M/s OFB Tech Private Limited v. State of West Bengal & Ors. [WPA 1271 of 2023 dated January 24, 2023] has set aside the order passed by the Appellate Authority and remanded back the matter to Appellate Authority to pass a fresh speaking order after giving petitioners an opportunity of being heard, as the assessee had duly prepared the e-way bill within 3 minutes of the interception of the vehicle.

Facts

M/s OFB Tech Pvt. Ltd ("the Petitioner") has challenged the Order dated September 12, 2022 ("the Impugned Order") of the Appellate Authority under the provisions of the West Bengal Goods and Services Tax Act, 2017 ("the WBGST Act") wherein the order in original dated December 17,2021 was confirmed imposing penalty and tax under the WBGST Act. 

The Petitioner was carrying the goods and was having a valid e-way bill of the vehicle.  The e-way bill was generated on December 07, 2021 and was valid till December 10, 2021. The aforementioned vehicle experienced a breakdown prior to the e-way bill's expiration. Further, arrangement was made for another vehicle in which the same goods was shifted. The Petitioner generated a fresh e-way bill within three minutes after interception of the second vehicle.

Issue

Whether the rejection of appeal by the Appellate Authority, after generation of a new e-way Bill due to breakdown of vehicle within three minutes of interception, is valid or not?

Held

The Hon'ble Calcutta High Court in WPA 1271 of 2023 held as under:

• Observed that, the Appellate Authority failed to properly take into account the petitioner's argument regarding the breakdown of the first vehicle and the generation of a fresh e-way bill for the same goods within three minutes after the second vehicle was intercepted. 
• Further observed that, the rejection and dismissal of the appeal on this ground is overly technical in this particular situation.
• Held that, the Impugned Order should be set aside and the matter should be brought back to the Appellate Authority to pass a fresh speaking order after giving an opportunity of hearing to the petitioner or its authorised representative.