GST detention requires tax-evasion intent; invoice and e-way bill matched, so penalty under Section 129(3) failed.

Detention of goods under the GST regime requires a tax-evasion element when penalty is imposed under Section 129(3) of the Central Goods and Services Tax Act, 2017. Where the invoice and e-way bill accompany the goods, no discrepancy is established, and only a minor weight difference is shown and accepted, the absence of specific material indicating an intention to evade tax defeats the detention and penalty proceedings. On these facts, the detention and penalty orders were treated as arbitrary and invalid in law, and the impugned orders were quashed.

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Issues: Whether detention of goods and the penalty order under Section 129 of the Central Goods and Services Tax Act, 2017 were sustainable in the absence of any intention to evade tax.

Analysis: The photocopy of the invoice and the e-way bill were found to be present with the goods, and no discrepancy between them was established. The explanation regarding the minor weight difference was accepted by the authorities, and no specific material was shown to indicate an intention to evade tax. Penalty under Section 129(3) requires a tax-evasion element, and on the facts found, that requirement was not satisfied.

Conclusion: The detention proceedings and the penalty order under Section 129(3) of the Central Goods and Services Tax Act, 2017 were held to be arbitrary and invalid in law, and the impugned orders were quashed.

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