E-way Bill compliance barred GST seizure where goods were in order and the missing declaration form was inapplicable.

A consignment accompanied by a valid E-way Bill, with all required particulars in order and no irregularity found on physical verification, could not be seized merely because the Transaction Declaration Form was not attached. The prior Division Bench view that the notification requiring that form was inapplicable after the E-way Bill regime applied, so the absence of the form did not justify seizure or penalty proceedings under GST law. The seizure order and consequential notice were therefore quashed.

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Issues: Whether seizure of goods and vehicle, and the consequential notice, were sustainable merely because the Transaction Declaration Form was not attached when the consignment was otherwise accompanied by an E-way Bill and the goods were found in order on physical verification.

Analysis: The consignment was accompanied by an E-way Bill containing the relevant particulars of the consignor, consignee, challan number and other required documents, and the vehicle was intercepted while passing through the State. Physical verification did not reveal any irregularity. In the circumstances, and in view of the earlier Division Bench view that the relevant notification requiring the Transaction Declaration Form was inapplicable after the E-way Bill regime came into force, the mere absence of the Transaction Declaration Form did not justify seizure or the initiation of penalty proceedings under the GST law.

Conclusion: The seizure order and the consequential notice were illegal and were quashed. The assessee succeeded.

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