Non-generation of part B

[Vikram shah]

We are based in UP and purchase scaffolding material from Ludhiana in Punjab. Last week, our supplier generated E-invoice and part A of e-way bill but did not generate part B, assuming that the transporter will generate it. The transporter also did not generate it and the goods were intercepted around 300 kms in transit (in UP) and penalty of 200% was imposed. The supplier paid the penalty and released the goods. My question is

- what appeal options does he have and will appeal be heard online or physical

- is the case strong as tax invoice was generated and we had paid the full amount including GST. So there was no intention of tax evasion

- how long will the appeal process take? is there any time-barring?

- The penalty has been paid under IGST? can that be set off against the CGST/SGST that is payable on the goods when monthly GST return has to be filed?

AI Summary

Non-generation of e way bill Part B can attract penalty under transit provisions, appealable online and penalty not adjustable.
Non-generation of e way bill Part B during transit constitutes a procedural contravention permitting seizure and penalty even where an e invoice was issued and GST paid. Documentary proof of bona fide compliance may favour the appellant. Appeals are to be filed online before the first appellate authority (with optional physical copy for records) within the prescribed period; disposal times vary. Penalties paid cannot be set off against CGST/SGST tax liabilities in returns.