Expired e-way bill alone cannot justify GST penalty without proof of deliberate evasion or lack of bona fides.

Penalty for transport of goods with an expired e-way bill cannot be sustained on a mere technical lapse where the transaction is otherwise duly documented and reflected in returns, with no discrepancy, diversion, or evidence of tax evasion. The Court treated GST penalty as requiring a contextual assessment and held that, absent a recorded finding of mala fide intention, wilful evasion, or lack of bona fides, detention and penalty are unwarranted. The penalty orders were therefore set aside and relief granted to the assessee.

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Issues: Whether penalty could be sustained for transport of goods after expiry of the e-way bill when there was no finding of tax evasion or deliberate wrongdoing.

Analysis: The dispute turned on whether an expired e-way bill, by itself, justified detention and penalty. The record showed that the transaction was duly documented, reflected in the returns and tax records, and no discrepancy or attempt to divert the goods was found. In such circumstances, procedural requirements under the GST regime must be applied in a contextual manner, and penalty cannot be upheld merely on a technical lapse absent evidence of mala fide intention, wilful evasion, or lack of bona fides. The cited authority on penalty under the GST framework was applied to hold that a definite finding of deliberate evasion is necessary before invoking penal consequences.

Conclusion: The penalty was not sustainable and the orders of the adjudicating and appellate authorities were set aside.

Final Conclusion: Relief was granted to the assessee because the detention and penalty were found to be unwarranted on the facts, the compliance record, and the absence of any intent to evade tax.

Ratio Decidendi: Penalty under the GST regime for an expired e-way bill cannot be sustained unless the authority records a finding of deliberate tax evasion or absence of bona fides; a mere procedural lapse is insufficient.

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