No intention to evade tax means seizure and penalty under GST detention provisions cannot survive.

Goods detained under the Uttar Pradesh GST framework were found unsustainable where the invoice reflected the project site as the delivery address and that factual position was undisputed. In the absence of any material showing mens rea or an intention to evade tax, the seizure, show cause notice and penalty under Section 129 lacked legal basis. The detention and penalty were therefore quashed, and refund of the penalty amount was directed.

---

---

Issues: Whether seizure of goods, the show cause notice issued under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017, and the consequential penalty were sustainable in the absence of material showing an intention to evade tax.

Analysis: The address mentioned in the invoice was the project site where the petitioner was carrying on work, and that factual position was not disputed. The record did not disclose any mens rea or material indicating evasion of tax. In such circumstances, detention of the goods and the consequential penalty lacked legal under Section 129.

Conclusion: The seizure, the show cause notice, and the penalty were held unsustainable and were quashed, and refund of the penalty amount was directed.

---