Mandatory transport documents for goods in transit are essential; mismatched later-produced e-way bills did not defeat detention and penalty.

Goods intercepted in transit without the mandatory transport documents under the Kerala Goods and Services Tax Act, 2017 were lawfully subjected to detention, tax and penalty under section 129 read with rule 138. The absence of valid documents at the time of interception was determinative, and the later production of e-way bills did not cure the defect because the vehicle particulars in those documents did not match the vehicle actually used. The subsequent explanation therefore failed to displace the statutory basis for the action, and the challenge to the tax and penalty order was rejected.

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Issues: Whether the penalty and tax imposed on goods intercepted without the prescribed transport documents under the Kerala Goods and Services Tax Act, 2017 were liable to be interfered with.

Analysis: The consignment was intercepted in transit without the statutory documents required for transportation of goods. The person in charge of the goods also stated that no valid documents were available at the time of inspection. Although the dealer later produced e-way bills and sought to explain the discrepancy, the vehicle particulars in those documents did not tally with the vehicle actually used for transport. In proceedings under section 129 read with rule 138, the absence of accompanying documents at the time of interception justified detention and imposition of tax and penalty, and the subsequent explanation did not satisfactorily dispel the discrepancy.

Conclusion: The challenge to the penalty and tax order failed and the impugned order was upheld.

Ratio Decidendi: Where goods are intercepted in transit without the mandatory transport documents, later-produced documents that do not match the intercepted vehicle do not negate liability under section 129 of the Kerala Goods and Services Tax Act, 2017.

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