No need to Generate E-way Bill when Consignment Value does not Exceed Rs. 50,000/-: Calcutta HC sets aside GST Penalty

The Calcutta High Court has set aside a penalty imposed under the Central Goods and Service Tax (CGST) Act, 2017, ruling that there is no need to generate an e-way bill if the consignment value does not exceed Rs. 50,000. The case involved Gopal Nondy, proprietor of Arpan Enterprise, who challenged an appellate authority's order that had confirmed a penalty for not producing an e-way bill during the transportation of goods valued at Rs. 5,92,623.20. The consignment was detained due to the absence of an e-way bill, despite each shipment's value being below the Rs. 50,000 threshold that necessitates an e-way bill under Rule 138 of the CGST/WBGST Rules 2017.\r

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Justice Raja Basu Chowdhury remanded the matter back to the appellate authority, instructing them to reassess the issue with proper consideration of all relevant documents. The court emphasized that the petitioner must disclose all documents related to the job work to help the proper officer determine the transaction value of the goods. If the petitioner fails to provide the necessary documents within the specified time, the appellate authority will dispose of the appeal on its merits in accordance with the law. The court's decision acknowledges the need for appropriate documentation and transparency in assessing consignment values.