2026-VIL-294-GSTAT-CHD
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SGST Tribunal

GST - Demand on the basis of e-way bill data - Section 73 of CGST Act – Issue of SCN on the basis of a report of the Directorate General of Analytics and Risk Management showing that the tax liability in GSTR-3B was less than the tax liability computed on the value of e-way bills. The demand with interest and penalty was confirmed under Section 73 on the grounds that the Appellant did not produce work orders or delivery challans of the principal and that the mismatch established outward movement of goods - The Appellant contended that the e-way bills were generated by the principal manufacturers for goods sent for job work and that it had invoiced and paid tax only on job work charges. Whether tax can be demanded merely on the value of goods covered by e-way bills as supply by the Appellant, along with interest and penalty - HELD - There is no evidence in the SCN that the goods covered by the e-way bills were supplied by the Appellant. The SCN was issued only on the basis of information showing a difference in value and was not the outcome of any investigation that the goods constituted a taxable supply - The Appellant established with documents for a sample case that the e-way bills were generated for movement of goods sent by the principal manufacturer for job work and for their return after job work. The trail consisted of a delivery challan marked for job work only, an e-way bill with the reason as outward job work, a consignment note, an invoice for job work charges and an e-way bill for job work returns - In the absence of any other evidence which clearly establishes evasion or non-payment of tax, there is no legal basis for demanding tax merely on the basis of the value of goods declared in the e-way bills - The demand of tax, interest and penalty is set aside and the appeal is allowed - Generation of e-way bill for job work - Rule 138 of CGST Rules - The FAA held that the e-way bill for movement of goods for job work has to be generated by the job worker if registered and that the e-way bills were generated by the Appellant - Whether an e-way bill for movement of goods for job work can be generated only by the registered job worker - HELD - Under Rule 138, the e-way bill has to be generated by a registered person who causes movement of goods where the value of goods exceeds the prescribed limit. In case of inter-state movement, it has to be generated irrespective of value either by the principal manufacturer or by the registered job worker. An unregistered person cannot generate the e-way bill. In case of movement of goods for job work, there is no bar to generating the e-way bill either by the principal manufacturer or by the job worker, as the phrase causes movement of goods provides that flexibility. It makes no difference who generates the e-way bill so long as the details of the consignor and the consignee are correctly declared. The conclusion of the FAA that the e-way bills were generated by the Appellant is factually incorrect, as is evident from the documents submitted by the Appellant - The view taken by the FAA is not correct and it is of little relevance who generated the e-way bills.
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