Evidentiary Value Of E-Way Bills In Commercial Disputes

Commercial transactions in India underwent significant changes after the introduction of the Goods and Services Tax (hereinafter referred as 'GST'). One such major change was the introduction of E-Way Bill System. In simple terms, an E-Way Bill records movement of goods exceeding Rs. 50,000/- in a digital form. E-Way Bills are governed by Rule 138 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred as 'CGST Rules'). As per Rule 138 (11) and (12), the details of an E-Way Bill is made available to the supplier as well as the recipient on a common portal, wherein they shall, communicate their acceptance or rejection of the consignment, within seventy two hours or at the time of delivery of goods, whichever is earlier, failing which the said consignment is deemed to be accepted.Over the passage of time, E-Way Bills have become a crucial piece of evidence often relied upon in commercial litigation. It is often seen, parties file their Ledger Account/Books of Account, along with Invoices and E-Way Bills to prove the supply and delivery of goods. The law with respect to evidentiary value of books of accounts is already well settled and is governed by Section 34 of the Indian Evidence Act, 1872/Section 28 of the Bhartiya Sakshya Adhiniyam, 2023. As per the said provision, books of accounts kept in the ordinary course of business are alone, not considered as sufficient evidence to fasten liability on a person. This is for the reason that it is often considered that ledger accounts and invoices can be self-serving documents and be prepared unilaterally. It is in this backdrop, that the Courts have now started to assess the evidentiary value attached to the E-Way Bills in commercial disputes. Judicial Trend:Time and again, Courts have now held that E-Way bills without corroborative evidence cannot alone establish delivery and supply of goods. Further evidence like GST Returns, Bank Statements, Delivery Challans, Acknowledgments, Transporter Details, Income Tax Returns, Daily Cash Books, Balance Sheets, Vouchers. is required to conclusively establish the delivery and supply of goods. Needless to say, the said documents also have to be proved, in accordance with law. The Delhi High Court in Sanjana Agarwal v. Namoshivai Apparels Private Limited; 2024: DHC: 10119-DB, while dealing with an Appeal challenging the judgment wherein the counter claim of the Respondent/Defendant was allowed, relied on Rule 138 of the CGST Rules and noted that acceptance/rejection of the goods was not made within seventy-two hours duly and that the Claim of the Respondent/Defendant was duly supported with GST Returns, WhatsApp Chats and testimonies of the Inspector from the Customs and Excise Department, along with the driver of the vehicle which supplied the goods. The Court held that the Respondent/Defendant had duly proved the supply and delivery of goods. Hence, the appeal was dismissed.Recently, in Mohinder Kumar Gandhi v. Praveen Kumar; 2025: DHC:8843-DB, the Delhi High Court while dealing with an Appeal wherein the suit of the Appellant/Plaintiff was dismissed on the ground that the Appellant had failed to discharge his onus of proof in respect of supply of goods, has categorically held that the presumption under Rule 138(12) of the CGST Rules, 2017 creates a presumption only for taxation purposes and the same does not discharge the burden of proof in a claim of delivery in civil suits, and there ought to be cogent and independent evidence proving the delivery goods. The Court specifically dealt with Sanjana (Supra) and held that the E-Way Bills in that particular case were also supported by additional evidence, like the GST returns, WhatsApp Chats, testimonies of the Bank officials. The Court specifically noted that the entries in the books of account alone cannot fasten liability in terms of Section 34 of the Indian Evidence Act and that the Appellant had failed to place on record any other supporting document like, vouchers, income tax returns, cash books, balance sheets, delivery challans. Hence, the Appeal was dismissed and the order dismissing the suit of the Appellant/Plaintiff was upheld.In view of the above, it can safely be concluded that, at present, E-Way Bills, alone cannot be considered as conclusive proof of delivery/supply of goods. The same ought to be substantiated and corroborated with independent and cogent evidence. Best Practices:The following best practices can be derived from the above decisions which may be considered while filing a Commercial Suit:Along with Ledgers, Invoices, E-Way Bills, always place on record other supporting documents like vouchers, bank account statements, balance sheets, account registers, cash books, GST Returns. Always place on record communications showing periodic demand for payment.Always place on record delivery challans bearing signature or acknowledgment of the recipient of the goods.Always place on record communications/correspondences showing that orders have...

Evidentiary Value Of E-Way Bills In Commercial Disputes

Sakshi Singh & Tushar Batra

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