E-way bill non-compliance: penalty had to be assessed under the correct GST provision where goods were covered by invoice.

Where goods were accompanied by a tax invoice identifying the owner as a registered dealer, the alleged contravention was limited to absence of the e-way bill. In that situation, penalty had to be computed under Section 129(1)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017, rather than Section 129(1)(b). The order applying Section 129(1)(b) was unsustainable and was set aside to that extent, with recomputation directed under Section 129(1)(a) in favour of the assessee.

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Issues: Whether, on the facts of the case, the penalty for movement of goods without the e-way bill was to be determined under Section 129(1)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017, instead of Section 129(1)(b) of that Act.

Analysis: The goods were accompanied by a tax invoice showing the particulars of the owner, who was a registered dealer. On that factual premise, the alleged infraction was confined to the absence of the e-way bill accompanying the goods. The proper statutory consequence, therefore, was to compute penalty under Section 129(1)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017. The order adopting Section 129(1)(b) was not sustainable and required interference.

Conclusion: The penalty was required to be recomputed under Section 129(1)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017, and the impugned order was set aside to that extent, in favour of the assessee.

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