2026-VIL-158-GSTAT-VRN
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SGST Tribunal

GST - Penalty under Section 129(3) of the CGST Act, 2017 for transporting goods without tax invoice and e-way bill - Generation of documents after interception - Vehicle loaded with taxable goods was intercepted in transit and the driver had no bill, bilty or e-way bill, an order of detention under Section 129(1) was issued, and the Appellant's authorised person produced a tax invoice and e-way bill generated several hours after the interception, whereafter the penalty was paid for release of the goods - Appellant contended that the lapse was procedural, that the invoice and e-way bill pertained to the same date and were produced before the penalty order, that the goods matched the invoice - Revenue contended that the documents were generated after interception, that the Appellant's statements were contradictory, and that the Appellant had repeated the wrong - Whether preparation or generation of invoice and e-way bill after the interception of the vehicle validated the illegal act of the Appellant - HELD - Rule 138 of the CGST Rules, 2017 requires information to be furnished before commencement of movement of goods, and the word "and" in Rule 138A(1) makes both the carrying of the invoice and the e-way bill mandatory, which is strengthened by Rule 138B, so that an e-way bill and tax invoice are mandatory to be carried along with the consignment - Section 129 starts with a non-obstante clause and gets triggered at the very moment the conveyance leaves with the consignment in contravention of the Act and Rules. The e-way bill mechanism was introduced to track movement of goods and check tax evasion, and compliance is to be done before the goods are moved and not after interception. Where goods are not accompanied by the invoice and e-way bill, a presumption of intention to evade tax may be raised, which is rebuttable by a proper and reasonable explanation, and mere furnishing of documents subsequent to the interception is not a valid ground to show absence of such intention - The decisions relied upon by the Appellant were distinguished on facts, as the Appellant had again supplied goods and generated fresh documents after interception, and the explanation of a family function appeared to be a novel story set up to justify the illegal act - The Appellant failed to rebut the presumption, the penalty is sustained, and the appeal is dismissed
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