Non Generation of E-Invoice

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients has taken steel structural work contracts from other states. While dispatching partial goods to the customer site through transport, only a delivery challan and an e-way bill were accompanied, as the value could not be determined until the contracts are completed. However, the roving squad officer intercepted the vehicle and imposed a penalty of 200% under Section 129(3) of the GST Act for the non-generation of an e-invoice. We explained the situation to him, but he did not agree. He insisted that the penalty be paid online before releasing the goods. To avoid delays in delivery, my client remitted the penalty of 200%. Now, my client wishes to challenge the order.

Thanks in advance.

[Sadanand Bulbule]

Dear querist

There is a provision to file an appeal under Section 107 before the FAA within the prescribed time. Ensure that the facts and grounds of appeal are proper and effective. There are bundle of judicial rulings including Apex Court that, unless there is an attempt to evade tax, penalty under Section 129[3] of the CGST Act cannot be levied for technical mistakes.

[Shilpi Jain]

Do file an appeal. These EWB are a big strain for a genuine businessman.

[Shilpi Jain]

*issues

[KASTURI SETHI]

The chances of winning an appeal on such a minor procedural error are very much bright. There is a large number of judgments in favour of the tax payers. Must go ahead with an appeal.

AI Summary

Steel Contractor Penalized 200% Under GST Act Section 129(3) for Missing E-Invoice Plans to Appeal Penalty A client involved in steel structural work contracts was penalized 200% under Section 129(3) of the GST Act for not generating an e-invoice during goods transport, despite having a delivery challan and e-way bill. The penalty was paid to avoid delivery delays, but the client intends to challenge the decision. Experts advised filing an appeal under Section 107, citing judicial precedents that penalties for technical errors without tax evasion attempts are often overturned. The consensus is that the appeal has a strong chance of success due to favorable judgments for taxpayers in similar cases.