E-way bill Part-B non-filling alone does not sustain penalty absent a recorded intent to evade tax.

Penalty under Section 129(3) of the U.P. GST Act could not be sustained where the order relied only on non-filling of Part-B of the e-way bill under Rule 138 of the GST Rules and recorded no finding of intent to evade tax. Mere procedural lapse in completing Part-B, without a recorded evasive intent, was held insufficient to justify penalty. The penalty order was therefore set aside in favour of the assessee.

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Issues: Whether penalty under Section 129(3) of the U.P. G.S.T. Act, 2017 could be sustained for non-filling of Part-B of the e-way bill in the absence of any recorded finding of intent to evade tax.

Analysis: The impugned order rested only on the violation of Rule 138 of the G.S.T. Rules, 2017 for non-filling of Part-B of the e-way bill. It did not record any finding that the movement of goods involved an attempt to evade tax. In view of the consistent view that mere non-filling of Part-B, by itself, does not attract penalty unless an intention to evade tax is found and recorded, the penalty order could not be sustained.

Conclusion: The penalty imposed under Section 129(3) was unsustainable and was set aside in favour of the assessee.

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