E-way bill expiry from technical error does not justify seizure or penalty absent any intent to evade tax.

Expiry of an e-way bill, by itself, does not justify seizure or penalty under Section 129(3) where the lapse results from a technical or clerical error in auto-populated distance details and the record otherwise shows proper transport documentation. The goods were supported by invoice, temporary registration, trade certificate and a fresh e-way bill, and the authorities were aware of the destination, nature of goods and movement on the GST portal. In the absence of any other discrepancy or material indicating an intent to evade tax, seizure proceedings were held unwarranted and the penal order was quashed.

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Issues: Whether seizure and penalty under Section 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 were justified where the e-way bill expired because the distance was wrongly auto-populated and the consignment was otherwise supported by invoice, temporary registration, trade certificate and a subsequent fresh e-way bill.

Analysis: The goods were motor vehicle chassis and were accompanied by the relevant transport and registration documents. The place of delivery, the nature of the goods and the movement under the GST portal were all known to the authorities. The expiry of the e-way bill arose from a wrongly reflected distance in the auto-generated particulars, which could not be amended by the assessee, and the case was treated as one of technical glitch rather than deliberate non-compliance. In the absence of any other discrepancy or material suggesting an intent to evade tax, seizure proceedings were held to be unwarranted.

Conclusion: The seizure, penalty and appellate order were not sustainable.

Final Conclusion: The writ petition succeeded and the impugned order was quashed, with the goods being held not liable to penal consequences on the facts found.

Ratio Decidendi: Expiry of an e-way bill, by itself, does not justify action under Section 129(3) when the lapse is attributable to a technical or clerical error and the record does not disclose an intention to evade tax.

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