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

Non-generation of e-invoice prompts penalty; appeal arguing absence of tax evasion and procedural error advised. Non-generation of an electronic invoice for interstate dispatches accompanied only by a delivery challan and e-way bill led to imposition and payment of a doubled penalty to release goods; the principal legal recourse is an appeal to the First Appellate Authority, arguing the omission was a procedural or valuation issue and that authoritative case law limits levy of the penalty to situations involving an attempt to evade tax.