2026-VIL-140-GSTAT-BLR
  1. Home
  2. 2026-VIL-140-GSTAT-BLR

SGST Tribunal

GST - Penalty under Section 129(3) for un-updated Part-B of e-way bill - Appellant's consignment was intercepted in transit accompanied by a tax invoice disclosing the correct vehicle number, delivery challans and an active Part-A e-way bill, but Part-B was un-updated - The appellate authority confirmed the penalty on the ground that failure to generate Part-B before transit of a high-value consignment is a serious violation - Whether a technical omission of updating Part-B, alongside a genuine tax invoice, valid purchase order and active Part-A can justify penalty under Section 129(3) in the absence of mens rea or intent to evade tax - HELD - Reliance on legacy rulings on entry tax and physical check-post systems, where everything relied on manual paper declarations, is misconceived, as the GST system is an integrated destination-based electronic network built for digital transparency - Section 129 is meant to catch persons actively trying to cheat the system and not honest clerical mistakes where the transaction is fully accounted for - Where goods moved under a valid tax invoice and Part-A and reached the destination, technical tracking errors or minor procedural omissions must be evaluated using a reasonableness test, and procedural transit glitches do not automatically raise a presumption of tax evasion without proof of a guilty mind - Non-filling of Part-B alone cannot attract Section 129 penalty without independent recorded findings on an attempt to evade tax; each case has to pass the test of intention to evade tax, the burden of which rests on the tax authorities - The appellate authority sustained the penalty without establishing the essential ingredient of intent to evade tax, making the penalty arbitrary and unsustainable - The order of the appellate authority and the penalty order are quashed and set aside - The appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?