2026-VIL-143-GSTAT-LCK
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SGST Tribunal

GST - Penalty under Section 129(3) of CGST Act, 2017 for transportation of goods without e-invoice generated under Rule 48(4) before commencement of movement – Appellant despatched goods under tax invoice, E-Way Bill and LR/Bilty - The vehicle was intercepted and detained on the ground that the invoice did not contain QR Code/IRN - E-invoice was generated two days after interception, before the order imposing penalty - First Appellate Authority upheld the penalty ex-parte - Whether penalty under Section 129(3) can be sustained for failure to generate e-invoice before commencement of transportation where there is no finding of intention to evade tax - HELD - The Department established an initial violation of the prescribed e-invoicing procedure. Subsequent generation of e-invoice does not obliterate the initial lapse but is relevant to decide whether the case involves deliberate suppression of the transaction - The movement was not undocumented, as the tax invoice, E-Way Bill and LR were available, the consignor, consignee, description and value of goods were identifiable, and the e-invoice was subsequently generated with specific IRN and acknowledgement number. The department did not allege that the invoice was fabricated, that the E-Way Bill was fake, that the goods differed from the documents or that the consignee was fictitious - Mere establishment of a procedural irregularity does not dispense with determining whether the facts justify the consequence under Section 129. Proceedings under Section 129 may legitimately be attracted where non-compliance is accompanied by substantive discrepancies, none of which was established - Payment made during detention proceedings cannot be treated as a voluntary admission of intention to evade tax. In the absence of any finding of mens rea or intention to evade tax penalty under Section 129 is not justified - The impugned order of the First Appellate Authority is set aside and the appeal is allowed
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