2024 (11) TMI 1072 - HC - GST

Quashing of impugned order under Section 129 of the GST Act - E-Way Bill was not properly filled - intent to evade tax or not - HELD THAT - Upon inspection of the goods no discrepancy of physically able goods with the goods disclosed in the E-Way Bill. The assessee on show cause resisted the proceedings - According to the assessee there was no intent to evade the tax. The goods in the vehicle were fully reconciled with details stated in the E-Way bill. Non filling of the part of E-Way Bill would not trigger the proceedings under Section 129 of the GST Act. The facts which are admitted and disclosed from the records are these. There was no discrepancy in the goods which were physically found at the time of inspection and details of goods recorded in the E-Way Bill available with the driver of the vehicle. The authorities below have not found any intent to evade tax. This Court has set its face against initiation of proceedings under Section 129 of GST Act in the wake of mere technical breaches. When substantial compliance of the provisions is disclosed and when the physcial inspection of goods tallies with the goods declared in the E Way Bill and no intent of tax evasion is made out, proceedings under Section 129 of GST Act become vitiated. The impugned order dated 24.06.2024 passed by the respondent no. 1, Additional Commissioner, Grade-2 (Appeal), State Tax, Judicial Division, Etawah is unsustainable and is quashed - Petition allowed.

Summary

The High Court quashed the impugned order under Section 129 of the GST Act due to technical breaches when goods matched E-Way Bill details and no intent to evade tax was found. The judgment cited VSL Alloys case, stating seizure was illegal without proper reasoning. The order dated 24.06.2024 was unsustainable and the petition was allowed.