2026-VIL-161-GSTAT-BLR
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SGST Tribunal

GST - Detention of goods and levy of penalty under Section 129 at the consignee's premises for non-updation of Part-B of e-way bill - Part-B containing the vehicle number was left unpopulated due to an inadvertent oversight - The Respondent inspected the stationary vehicle, recorded the driver's statement at the Appellant's unit and detained the goods under Section 129(1) for want of Part-B update. The Appellant updated Part-B promptly on being notified and deposited the disputed tax and penalty under protest to secure release of the goods - Whether the detention of goods and levy of penalty under Section 129 at the doorstep of the consignee's premises solely due to an un-updated Part-B, subsequently cured, is legally sustainable - HELD - Section 129 contemplates detention of goods in transit. The vehicle had already completed its inter-state journey and was stationary at the Appellant's registered gate, as corroborated by the driver's statement - Intercepting a vehicle that has finished its transit at the delivery address to invoke transit-detention provisions is a misapplication of the statute. Section 126 provides that no penalty shall be imposed for minor breaches that are easily rectifiable and involve no revenue loss – Further, the omission of Part-B was a clerical slip committed in the early weeks of the e-way bill mechanism. Tax on the underlying supply stood paid through valid tax invoices, and Part-A was generated - Section 129 is not a strict liability provision. Penalty cannot be sustained in the absence of intention to evade tax, and the Revenue cannot substitute a missing Part-B field with a presumption of tax evasion - Circular No. 64/38/2018-GST directs that minor discrepancies where primary documents exist should not attract proceedings under Section 129. Transforming a rectifiable paperwork delay into a penalty at the consignee's doorstep violates the doctrine of proportionality and reasonableness - The Order-in-Appeal is set aside and the appeal is allowed
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