Penalty proceedings are not attracted where non-mention of the transporter’s name in the e-way bill is a mere technical lapse without any intent to evade tax.

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Facts of the Case:

Goods were being transported from Delhi to Delhi accompanied by tax invoice, e-way bill, and bilty.
The name of the transporter was not mentioned in the e-way bill.
Truck number and all other relevant details were mentioned correctly.
The goods were detained and seized under Section 129(3) of the CGST/UPGST Act,
The adjudicating authority imposed penalty; appellate authority upheld it.

Petitioner's Arguments:

Movement was Delhi to Delhi; diversion to Ghaziabad was only for logistical purposes.
Invoice, GR, and e-way bill mentioned correct destination.
Non-mention of transporter's name in the e-way bill is only a technical breach.
No intent to evade tax.
Respondent's Arguments:
Name of transporter was never disclosed at any stage.
Driver's statement about Ghaziabad destination justified proceedings.
Authorities acted within law.

Court's Observations:

All essential documents (invoice, e-way bill, etc.) were in place except transporter's
No finding on intention to evade tax was recorded by lower authorities.
Statement of driver alone insufficient to prove evasion.
The appellate grounds specifically stating goods were moved for full truck load to godown were never denied by the department.

As per precedents:

Varun Beverages Ltd. v. State of U.P. (Allahabad HC)
Asst. Commissioner (ST) v. Satyam Shivam Papers (P.) Ltd. (Supreme Court)- penalty under Section 129 is not justified for mere technical lapses without intention to evade tax.

Decision:

Penalty proceedings under Section 129 are not attracted without intention to evade./ Both the order dated 30.04.2021 (original authority) and the appellate order dated 23.10.2021 are quashed.
Writ petition allowed in favour of the assessee.

GST Case Law Shakuntalam Associates v. Additional Commissioner Grade-2 (Appeal)-V

Citation-2025 TAXONATION 1946 (ALLAHABAD)(Click here to read full case law)

CA Naredra Gupta

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