2026-VIL-174-GSTAT-AGR
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SGST Tribunal

GST - Parallel proceedings under Section 129 and adjudication for the same cause of action - The Appellant was found unloading goods from a vehicle during a search without any legal documents. Proceedings under Section 129 of the CGST Act were initiated for release of the goods and tax and penalty were collected, while a show cause notice was also issued and tax and penalty were imposed in adjudication - While FAA reduced the liability by the amount levied and collected in the Section 129 proceedings, the Revenue neither filed an appeal nor a memorandum of cross objection against that finding - Whether the First Appellate Authority legally reduced the liability on account of the parallel proceedings - HELD - On allegation of the goods which were being unloaded from tempo, parallel proceedings u/s 129 of was initiated against taxpayer and for releasing the goods tax and as penalty were levied and collected from taxpayer. That amount was reduced by FAA from the total amount levied by ld. adjudicating officer. Revenue has not challenged that finding recorded either by filling appeal or memorandum of cross objection. Therefore, the Tribunal of the view that ld. FAA has legally reduced the tax liability on taxpayer as for the same cause of action and two parallel proceedings cannot be allowed to be initiated against taxpayer under the same legislation – Ordered accordingly - Rejection of belatedly produced manual invoices for goods found without documents in transit - The Appellant failed to produce the invoice, e-way bill and transporter's bilty at the time of search, and explained that the transporter had mistakenly left the papers at its office. No valid paper was submitted even with the reply to the show cause notice. Two manual invoices were produced before the adjudicating officer after more than three months - Whether the authorities rightly discarded the tax invoices, bilty, bank statement and e-way bill filed by the Appellant in respect of the goods unloaded at the time of search - HELD - Section 68 read with Rules 138 and 138A mandates that the person in charge of a vehicle carrying goods above the prescribed value must carry the prescribed documents including the tax invoice and a valid e-way bill - Generation of an e-way bill prior to commencement of movement is a strict statutory requirement. A manual invoice produced three months after interception, without electronic upload on the GST portal, has no evidentiary credibility. Post-interception generation or manual creation of transit documents is a procedural afterthought which cannot retrospectively validate illegal transportation or cure a substantive breach - The goods were sensitive and high value commodities susceptible to tax evasion through unrecorded parallel trade, which creates a strong presumption of intention to evade tax that the taxpayer failed to rebut by relevant and reliable evidence - The concurrent findings discarding the manual invoices are well reasoned and upheld - The second appeal is dismissed
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