2026-VIL-296-GSTAT-LCK
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SGST Tribunal

GST - Maintainability of Revenue appeal - Monetary limit under the litigation policy Circular No. 207/01/2024-GST - Revenue preferred an appeal against the order of the FAA quashing the penalty imposed under Section 129(3). The Respondent contended that the penalty was below the monetary threshold prescribed for departmental appeals - Whether the appeal is maintainable despite the penalty being below the monetary limit - HELD - Paragraph 4 of the Circular provides that the monetary limits shall not apply where the matter relates to any other issue which is recurring in nature or involves interpretation of the provisions of the Act or Rules, and the decision to file appeal is to be taken on merits - The dispute involves a legal question of a recurring nature affecting the enforcement jurisdiction of the mobile squad. Since the issue arises repeatedly in transportation checks, it falls within the exclusions of the litigation policy - The preliminary objection is overruled and the Revenue appeal is held to be maintainable - Penalty under Section 129(3) of CGST Act for non-updation of Part-B of e-way bill - The mobile squad intercepted a vehicle carrying goods with valid tax invoices and Part-A of the e-way bills, while Part-B was not filled - Penalty was imposed under Section 129(1)(a) and paid under protest. FAA order quashed the penalty - Revenue contended that the exemption of fifty kilometers did not apply as the final destination was in another district - Whether movement of goods from the consignor to the transporter's depot within a short distance without a vehicle number in Part-B violates Section 68 read with Rule 138 or is protected by the fifty kilometers exemption - HELD - The third proviso to Rule 138(3) waives the requirement to furnish conveyance details in Part-B where the goods are transported for a distance of up to fifty kilometers within the State from the place of business of the consignor to the place of business of the transporter for further transportation. The movement was limited to about five kilometers to the depot of the declared transporter for onward carriage, and the e-invoices were generated before the shipment departed. An automated system stamp on the portal cannot override the Rules, and under Explanation 2 to Rule 138(3) the e-way bill remains valid without Part-B details if the movement fits within the third proviso. The goods matched the invoices, the physical verification report showed no variance, and the transaction was fully transparent. A minor procedural omission, decoupled from an intent to evade tax, cannot sustain the penal mechanism under Section 129(3). A mere deviation in the transit path cannot be equated with an intention to evade tax, as the burden of proof is on the Revenue to produce concrete evidence. The driver's statement contained no admission of any route manipulation, and the detention documents were silent on route discrepancy. The theory of route divergence was therefore an afterthought raised at the SCN stage - The order of the FAA is upheld and the appeal of the Revenue is dismissed
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