GSTAT Order
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SGST Tribunal

GST - Stock Transfer without e-way Bill - Penalty under Section 129 absent Supply - Registered person dealing in steel goods transported steel goods under Delivery Challan from its own registered premises to its own registered godown as stock transfer. The vehicle was intercepted and detained by Mobile Squad on the ground that no e-way bill accompanied the movement. Penalty was imposed under Section 129(3) of the CGST Act 2017 - Whether penalty under Section 129 is leviable on goods transported as stock transfer where no tax is payable – HELD - The phrase tax payable in Section 129(1) would contemplate that the transaction is liable for tax and on which the tax becomes payable. A stock transfer between locations of the same registered person does not constitute a supply as defined under Section 7 of the CGST Act because it lacks two distinct entities and consideration. Section 7 requires the transaction to be between more than one person or entity, illustrative expressions such as sale, transfer, barter, exchange fortifying the requirement of existence of more than one person, and the supply must be for consideration as defined in the Act. Where a transaction does not fall within the definition of supply under Section 7, the charging Section 9 does not get attracted and hence no tax is payable - Penalty under Section 129 which is quantified with reference to tax payable on such goods cannot be imposed where no tax is payable. The contention that the phrase tax payable is only a measure for quantifying penalty without requiring proof of actual supply was rejected. The finding that the transaction was not genuine merely on the ground that e-way bill was not available lacked evidentiary basis and in the absence of any allegation or evidence regarding non-genuineness of the transaction, such finding was unsustainable - Penalty under section 129 of CGST Act is not leviable on the registered person, for transport of goods without e-way bill, when such transport was undertaken on account of stock transfer - The impugned Order-in-Appeal is set aside and the appeals are allowed
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