2026-VIL-240-GSTAT-RPR
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  2. 2026-VIL-240-GSTAT-RPR

SGST Tribunal

GST - Penalty under Section 129(1)(a) of the CGST Act, 2017 for goods transported after expiry of e-way bill - The vehicle was intercepted about three days after the e-way bills had expired and a notice in FORM GST MOV-09 was issued - Penalty equal to twice the amount of tax was imposed - The Appellant contended that the documents were produced, the vehicle was only about four kilometres short of the destination and there was no evidence of intent to evade tax - Whether penalty under Section 129(1)(a) is not attracted in absence of intent to evade tax - HELD - A taxing statute is to be construed strictly and its intention is gathered from the words used. Section 129(1) does not provide that intent to evade tax is mandatory for invoking the provision or imposing penalty, unlike Section 130 of the Act. Mens rea is an essential element only for criminal offences and is not an essential element for imposing penalty for breach of civil obligations or liabilities - Proceedings under Section 129 are adjudicatory in nature and determine a civil liability. The Circular No. 64 dated 14.09.2018 does not provide that no proceeding under Section 129 be initiated where the e-way bill has expired, and the case of the Appellant does not fall in any of its exceptions - For invoking the of provision of section 129(1) or/and imposing penalty under this section the proof or facts, circumstances or material on record which shows intent to evade tax are not required – Ordered accordingly - Movement of goods after expiry of e-way bill on plea of vehicle breakdown - Rule 138(10) of the CGST Rules, 2017 - Evidentiary value of GPS report, repair bills and FORM GST DRC-03 - The Appellant contended that the e-way bills expired because the vehicle broke down on three occasions and relied on GPS records, vehicle repair bills and a mention of breakdown in FORM GST DRC-03 - Whether the Appellant established a genuine circumstance justifying movement of goods after expiry of the e-way bill - HELD - Documents were produced at the time of inspection and there was no discrepancy in description, quantity, value or names of the parties. The Appellant did not amend or extend the validity of the e-way bill, which under the third proviso to Rule 138(10) may be extended within eight hours from the time of its expiry. The disclaimer in the GPS report was not a correct reason for disbelieving it. However, the GPS report did not pertain to the vehicle involved and was generated after the interception, so it was not relevant - The Tribunal, being the final authority of fact finding, examined the repair bills. Some were estimates and not cash memos, one was a credit memo without signature of an authorised person and one was a simple paper. These bills have no evidentiary value. The breakdown was first mentioned in FORM GST DRC-03 nine days after interception, without mentioning three breakdowns, and no explanation was given for the silence. The Appellant could have obtained the statement of the driver under the RTI Act, 2005 or filed an affidavit of the driver, but did not - The plea of breakdown is not established and the order of the FAA is upheld - The appeal is disallowed
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