Inter-State goods transport without e-way bill despite valid invoices and GR; detention and GST s.129 penalty set aside

Detention and penalty under s.129 GST Act for non-carriage of an e-way bill was held unsustainable where the goods originated and were destined within another State, the tax invoices and GR were admitted genuine, and a State notification exempted items other than specified goods from the e-way bill requirement. The HC found the authorities themselves accepted there was no intention to unload in the taxing State or evade tax, and no discrepancy in accompanying documents; a mere technical lapse could not justify penalty. The impugned detention/penalty orders were set aside and any amount deposited was directed to be refunded within the stipulated time.

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Issues involved: Entertaining writ petition due to absence of GST Tribunal in U.P., challenge to orders imposing penalty under GST Act for not carrying e-way bill during transit in U.P.

Summary:
- The petitioner, a registered company engaged in manufacturing and sale of goods, challenged orders imposing penalty for not carrying e-way bill during transit in U.P. despite goods originating from and destined for Madhya Pradesh.
- Petitioner argued goods were exempt from e-way bill requirement in Madhya Pradesh as per notification, and all necessary documents were present during transit.
- Respondent contended e-way bill was mandatory for goods in transport, and the relevant notification applied to Madhya Pradesh, not U.P.
- Court acknowledged goods' origin and destination in Madhya Pradesh, genuine documents, and exemption from e-way bill requirement in Madhya Pradesh.
- Noted goods had to briefly pass through U.P. on route from Gwalior to Panna, Madhya Pradesh.
- Emphasized that penalty was unjustified as goods were not intended for unloading in U.P., and technical fault of missing e-way bill should not lead to penalty when no discrepancies were found in accompanying documents.
- Consequently, the writ petition was allowed, impugned orders were set aside, and any deposited amount during litigation was to be refunded within 20 days.

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