2026-VIL-64-GSTAT-LCK
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SGST Tribunal

GST - Return of own machinery from project site, Movement of goods without e-Way Bill – Violation of Rule 138 of CGST Rules, 2017 - The Appellant claimed that an excavator was being returned from a project work site to its registered place of business with a Delivery Challan and that the movement was not a taxable supply as it was return of own machinery used for job work - Department treated the transportation of goods without valid e-Way Bill as a violation of Rule 138 and imposed penalty under Section 129 - Whether movement of machinery without e-Way Bill, when claimed to be return of own goods from job work site with only a Delivery Challan, constitutes a violation of Rule 138 warranting penalty under Section 129(3) of the CGST Act, 2017 - HELD - The machinery belonging to the appellant and being returned from the project site does not by itself exempt the appellant from complying with statutory requirements relating to transportation of goods under Rule 138. Under Section 68 of the CGST Act read with Rule 138 of the CGST Rules, the prescribed documents including e-Way Bill are required for movement of goods including movement for reasons other than supply, subject to specified exemptions - The Appellant has failed to satisfactorily establish the tax treatment of consideration received for use of the machinery at the project site and though stated to be operated on hourly basis, no sufficient evidence regarding hours of operation, consideration charged and corresponding discharge of GST has been produced. The contention regarding alleged 20-kilometre exemption cannot be accepted in the absence of satisfactory evidence establishing that the present movement was specifically covered by applicable statutory exemption under Rule 138(14) or any relevant notification - The absence of e-Way Bill coupled with non-disclosure of tax treatment of consideration gives rise to reasonable inference of intention to evade tax and cannot be treated as a mere technical lapse - The judicial precedents relied upon are distinguishable on facts and circumstances. The appeal is rejected and the orders of both the original adjudicating authority and First Appellate Authority are upheld – The appeal is dismissed
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