E-way bill omission with tax invoice attracts penalty under the correct GST clause, not the higher violation provision.

Where goods were intercepted while carrying a tax invoice showing the registered dealer's particulars, and the only alleged default was absence of the e-way bill, the penalty was to be computed under Section 129(1)(a) of the U.P. GST Act, 2017 for movement without proper documents. The higher measure under Section 129(1)(b) was inapplicable because that clause addressed a different violation. The detention penalty order was therefore interfered with, the penalty was directed to be recomputed under the correct provision, and consequential relief was available for release of the goods upon deposit in accordance with law.

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Issues: Whether, on the facts of interception of goods accompanied by a tax invoice showing the registered dealer's particulars, the penalty was liable to be determined under Section 129(1)(a) of the U.P. Goods and Services Tax Act, 2017 instead of Section 129(1)(b) of that Act.

Analysis: The goods were found carrying a tax invoice disclosing the owner's particulars, and the only alleged infraction was the absence of the e-way bill accompanying the goods. On that footing, the applicable consequence was penalty for movement of goods without proper documents under Section 129(1)(a), not the higher measure under Section 129(1)(b). The impugned order therefore required interference and the authorities were directed to recompute the penalty under the correct clause.

Conclusion: The penalty had to be determined under Section 129(1)(a) and not under Section 129(1)(b), and the assessee succeeded on this issue.

Final Conclusion: The detention penalty order was set aside and the matter was confined to fresh quantification of penalty under the correct statutory provision, with consequential relief regarding release of goods upon deposit in accordance with law.

Ratio Decidendi: Where goods are accompanied by a tax invoice and the only default is non-accompaniment of the e-way bill, the penalty must be computed under the provision applicable to that infraction and not under the provision prescribing a higher consequence for a different violation.

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