GST interception without invoice and e-way bill can trigger presumption of evasion; later production may not cure the defect.

Absence of an invoice and e-way bill at the time goods were intercepted under the Uttar Pradesh GST regime was treated as a substantive contravention, not a mere technical lapse. On that basis, a presumption of intention to evade tax arose, shifting the burden to the owner or transporter to produce satisfactory material rebutting evasion. Subsequent production of the invoice and e-way bill after interception did not cure the default where the reason for their earlier absence was not established. The penalty under Section 129(3) was therefore justified, as the presumption of evasion remained unrebutted.

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Issues: Whether penalty under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 was sustainable where the goods were intercepted without invoice and e-way bill, but the documents were produced later.

Analysis: The undisputed position was that neither the invoice nor the e-way bill accompanied the goods at the time of interception. Such a failure was treated as a substantive contravention and not a mere technical lapse. In such circumstances, a presumption of intention to evade tax arises, and the burden shifts to the owner or transporter to rebut that presumption by satisfactory material. Production of the documents after interception did not remove the liability where the explanation for their absence at the relevant time was not established.

Conclusion: The penalty was held to be justified and the petitioner failed to rebut the presumption of evasion.

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