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of <h1>GST penalty upheld for not uploading Part B of E-Way bill under Section 129 and Rule 138</h1> <h3>M/s VISHALFAB (INDIA) PVT. LTD UNIT 2 Versus THE STATE OF MADHYA PRADESH AND OTHERS</h3> M/s VISHALFAB (INDIA) PVT. LTD UNIT 2 Versus THE STATE OF MADHYA PRADESH AND OTHERS - 2025:MPHC - IND:18103 ISSUES: Whether failure to generate and upload Part B of the E-Way bill, specifically the vehicle details, constitutes a contravention under Section 129 of the GST Act justifying detention and penalty.Whether the omission to fill Part B of the E-Way bill can be considered a minor or technical breach under Section 126 of the GST Act warranting waiver or reduction of penalty.Who is responsible for generating Part B of the E-Way bill under Rule 138 of the MP GST Rules, 2017-the registered person or the transporter.Whether prior payment of IGST and generation of Part A of the E-Way bill absolves liability for penalty when Part B is not generated. RULINGS / HOLDINGS: Failure to generate and upload Part B of the E-Way bill, which includes the vehicle number, renders the E-Way bill incomplete and invalid, thereby constituting a contravention under Section 129 of the GST Act justifying detention and penalty.The omission to fill Part B of the E-Way bill is not a 'minor breach' or 'technical error' under Section 126 of the GST Act, as it is not 'easily rectifiable' and is a mandatory statutory requirement; hence, penalty is justified.Under Rule 138(2) of the MP GST Rules, 2017, the primary duty to generate Part B of the E-Way bill lies on the registered person causing the movement of goods, not the transporter.Advance payment of IGST and generation of Part A of the E-Way bill does not exempt the registered person from the obligation to generate Part B; non-compliance results in valid penalty under Section 129. RATIONALE: The Court applied Section 129 of the Madhya Pradesh Goods and Service Tax Act, 2017, which mandates detention or seizure of goods transported in contravention of the Act or rules, with penalty equal to 100% of tax payable.Section 126 of the GST Act distinguishes between minor breaches and serious contraventions; omissions or mistakes that are 'easily rectifiable' and without fraudulent intent may attract lesser penalties, but failure to generate Part B is not such a minor breach.Rule 138 of the MP GST Rules, 2017, as amended, explicitly requires the registered person to furnish information in both Part A and Part B of FORM GST EWB-01 electronically before commencement of movement; Part B includes vehicle details critical for validating the E-Way bill.Precedents cited by the petitioner involving quashing of penalties for minor or technical errors were distinguished on facts, as the present case involves non-generation of a mandatory part of the E-Way bill, which is not a minor or technical lapse.The Court reaffirmed the holding of a Division Bench that an E-Way bill without Part B is 'not genuine/valid' and that this is not a minor mistake but a substantive non-compliance.No dissenting or concurring opinions were recorded; the Court upheld the impugned order dismissing the appeal and confirming the penalty.
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