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GST - Expiry of e-way bill, Intra-State stock transfer, Penalty and seizure proceedings, Intent to evade tax – Petitioner is engaged in the business of manufacture and retail of milk and milk products, had transferred some stock from its business premises - Petitioner issued stock transfer challans and generated e-way bills. However, during the transit, the driver of the vehicle had to divert the route due to a personal emergency, resulting in the expiry of the e-way bill - The vehicle was intercepted by the authorities on the ground of the expired e-way bill, and penalty and seizure proceedings were initiated - Whether penalty and seizure proceedings can be initiated against the petitioner in the absence of any finding regarding the intent to evade payment of tax – HELD - For initiating proceedings under Section 129(3) of the CGST Act, 2017 the intent to evade payment of tax is a mandatory requirement as per Section 130 of the CGST Act. In the present case, the authorities have not recorded any finding with regard to the intent of the petitioner to avoid the payment of legitimate tax. In the absence of such a finding, the penalty as well as the seizure cannot be justified in the eyes of law - in the absence of any finding regarding the intent to evade payment of tax, the proceedings under Section 129 of the CGST Act cannot be initiated and the authorities should have initiated proceedings under Section 122 of the CGST Act instead - Court relied on the judgment of the Supreme Court in the case of Assistant Commissioner (ST) & others v. M/s Satyam Shivam Papers Private Limited, where it was held that if there is no intent on the part of the petitioner to evade tax and the goods could not be taken to the destination within time for reasons beyond the control of the petitioner, the proceedings under Section 129 of the CGST Act cannot be justified – The impugned order is quashed and the writ petition is allowed
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