2026-VIL-154-GSTAT-GZB
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SGST Tribunal

GST - Penalty under Section 129(3) for address discrepancy in tax invoices and e-way bills - Appellant dispatched goods in an inter-State supply accompanied by tax invoices, e-way bills and transporter's bilty, with IGST charged - Two tax invoices and the corresponding e-way bills showed the buyer's former VAT address instead of the updated GST-registered address. Proceedings under Section 129(3) were initiated and a penalty was imposed - Whether the use of the consignee's former address in two invoices and the corresponding e-way bills justifies penalty under Section 129 of the CGST Act, 2017 - HELD - Section 129 does not expressly require fraudulent intent in every case. The statutory conditions for a penalty must still be proved, and a documentary defect cannot be presumed to establish tax evasion without examining the explanation and evidence - The First Appellate Authority confused the rule about intent with the need to prove a breach that attracts the particular penalty. Tax invoices, e-way bills and bilty documents accompanied the goods, and physical verification showed that the goods matched - The explanation connecting the disputed entry to the buyer's former VAT address and old customer details retained in the ERP system was supported by the record. The Department did not identify a different purchaser, a fictitious transaction, any actual diversion of the goods, clandestine unloading or suppression of taxable value. The address mismatch alone cannot take the place of such evidence - Repetition of the same error in both invoices and e-way bills can be explained by use of the same customer data - A deliberate change of destination, an unidentified consignee or a material gap in the supporting documents may justify a different result - The error was bona fide and without any intention to evade tax. The penalty under Section 129 therefore cannot be sustained - The Order-in-Appeal and the Order-in-Original are set aside to the extent of the penalty, and any amount deposited towards it is to be refunded with interest wherever legally payable - The appeal is allowed
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