Issue: Whether mere failure of the transporter to update the e-way bill with the substituted vehicle number, when goods and invoices fully matched, justified seizure, penalty, and denial of refund.

Held that: The High Court observed that goods were accompanied by valid tax invoices mentioning serial numbers of electronic items, and no discrepancy was found during verification.

The change of vehicle due to non-availability was explained from the beginning in petitioner’s reply.  Failure of the transporter to update the e-way bill was a technical lapse. There is no intent to evade tax could be inferred when goods and documents matched.

The authorities erred in ignoring the petitioner’s explanation and in treating a procedural lapse as evidence of tax evasion.

Accordingly, the impugned orders were quashed. Writ petition allowed; the amount deposited was directed to be refunded.

Case Name: M/s Rakesh Plastic Furniture And Crockery Emporium Tehsil Road Aliganj Versus State of U.P. And 2 Others dated 01.09.2025

To read the complete judgment 2025 Taxo.online 2186