2026-VIL-159-GSTAT-VRN
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SGST Tribunal

GST - Penalty under Section 129 for transporting goods contrary to description in invoice and e-way bill - Intention to evade tax - Vehicle was intercepted and goods of higher quantity and value, kept in bags and covered with loose goods of lesser quantity and value, were found contrary to the description mentioned in the invoice and e-way bill, and the goods and vehicle were taken into custody - Appellant contended that the goods were loaded by labourers due to bonafide mistake and relied on High Court decisions holding that penalty cannot be imposed for classification disputes or minor typographical errors, while the Revenue contended that the Appellant was a habitual evader since a connected appeal showed documents generated after interception - Whether the Appellant transported the goods placed in bags and covered with loose goods, contrary to the description in the invoice and e-way bill, with intention to evade tax - HELD - The decisions relied upon by the Appellant have no application, as the question of classification of goods or typographical error is not involved. The goods of much higher quantity and value had been concealed in the vehicle by covering them with goods of lesser quantity and value, both were separately identifiable, and no question of classification was involved. In the garb of invoice and e-way bill prepared for only the lesser valued goods, the Appellant tried to transport goods of much higher value, which clearly establishes intention to evade tax, as held in the High Court decisions where misdescription in transport papers permitted an entirely different and higher value commodity and in the decision where mixed scrap was transported without valid documents. Civil matters are decided on preponderance of probabilities, and repetition of such conduct as in the connected appeal enhances the degree of probability of dishonest and fraudulent intention. The version of confusion in the mind of labourers appears illusory - The appellant is liable to pay tax and penalty - The appeal is dismissed - Generation of fresh invoice and e-way bill after interception of vehicle - Whether preparation of fresh invoice and generation of e-way bill after interception of the vehicle converted the illegality caused by the Appellant into legality - Appellant submitted a fresh tax invoice and e-way bill after the interception and expressed willingness to deposit the tax and penalty, and the adjudicating authority imposed tax and penalty, which was upheld by the first appellate authority - HELD - Under the GST law, an illegal act cannot be validated at a subsequent stage. Generating documents after interception or detention is a post detection remedy that cannot cure earlier non-compliance, and in absence of statutory provision the subsequent preparation of documents to convert illegality into legality is impermissible. Goods must be supplied only with valid invoice and e-way bill, and where goods are not accompanied by proper documents a presumption of intention to evade tax may be raised, which the Appellant failed to rebut - The impugned orders are lawful and justified, the statute does not permit such rectification, and the appeal is dismissed.
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