Expired E-Way Bill Due to Traffic Restrictions, Sunday and National Holiday: Penalty Refunded — Calcutta HC Follows Division Bench’s Hindusthan Biri Leaves, Holds 200% Penalty Unsustainable

The Calcutta High Court has directed refund of penalty of Rs. 12,77,812 imposed under Section 129(1)(a) at 200% for transportation of goods with an expired e-way bill, holding that the delay was attributable to traffic restrictions imposed by the Deputy Commissioner of Police, followed by a Sunday and a national holiday, and that the Revenue had not demonstrated lack of bona fides on the part of the petitioners. The ruling by Justice Smita Das De in WPA 24249/2024 (Ratnaka Enterprises, decided 10.09.2026) follows the Division Bench’s judgment in Hindusthan Biri Leaves & Anr. v. Assistant Commissioner of State Tax, which held that even where the transporter seeks extension of the e-way bill beyond the statutory period, such extension shall be allowed by condoning the delay.

The court noted that the petitioners had maintained all documents in order and the expiry occurred solely due to circumstances beyond their control. The 200% penalty for failure to reach the destination within the validity period, in the absence of any evidence of intent to evade tax, was held to be in violation of the principles of natural justice.

- 2026-juristway.com-2733-HC(Calcutta)-GST  |  High Court of Calcutta  |  WPA 24249 of 2024  |  10.09.2026