TaxTMI 
TaxTMI 
No Penalty on Delayed e-way bill generation without intent to evade tax
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....o Penalty on Delayed e-way bill generation without intent to evade tax<br>By: - Bimal jain<br>Goods and Services Tax - GST<br>Dated:- 15-7-2025<br>The Hon'ble Allahabad High Court in M/s T.K. Printers Versus Additional Commissioner Grade 2 And Another - 2025 (6) TMI 737 - ALLAHABAD HIGH COURT held that tax and penalty under Section 129 of the CGST/UPGST Act cannot be imposed in absence of intent t....
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....o evade tax, where e-way bill was generated before detention and the goods were part of a stock transfer, not meant for sale. Facts: T.K. Printers ("the Petitioner") is an authorised vendor of Bharat Petroleum Corporation Ltd. ("BPCL") with a valid GSTIN. BPCL instructed the Petitioner to transport four MPD machines (Petrol and Diesel dispensing units) from Kanpur to its petrol pump in Atarra, D....
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....istrict Banda. The goods were loaded onto a vehicle, but due to a technical glitch at BPCL's office, the e-way bill could not be generated at that moment. On January 28, 2021, the vehicle was intercepted by the authorities, and a physical inspection revealed no discrepancy in the consignment. However, the goods were detained on January 29, 2021, on the ground that documents were allegedly post-fa....
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....cto. A show cause notice in Form GST MOV-07 was issued and replied to by the Petitioner along with the subsequently generated e-way bill, but the same was rejected, and an order in Form GST MOV-09 was passed on February 4, 2021, imposing tax and penalty. The appeal against the said order was also dismissed. The Petitioner contended that the e-way bill was generated before the detention order was....
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.... passed, that the goods were not for sale but for installation at BPCL's petrol pump, and that no tax evasion was involved. The Petitioner relied on High Court judgments in M/s Vacmet India Ltd. Versus Additional Commissioner Grade -2 (Appeal) And Another - 2023 (10) TMI 863 - ALLAHABAD HIGH COURT and M/s Goverdhan Oil Mill Versus Additional Commissioner And Another - 2024 (4) TMI 1271 - ALLAHABAD....
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.... HIGH COURT, asserting that the transaction was a stock transfer and not liable to tax under the given circumstances. Issue: Whether tax and penalty under Section 129 of the CGST//UPGST Act could be imposed where, the e-way bill was generated prior to detention, and the transaction involved stock transfer of goods not meant for sale? Held: The Hon'ble Allahabad High Court in M/s T.K. Printers ....
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....Versus Additional Commissioner Grade 2 And Another - 2025 (6) TMI 737 - ALLAHABAD HIGH COURT held as under: * Observed that, the four MPD machines were not intended for sale but for installation at a BPCL petrol pump. A certificate to that effect was on record, and the price of the goods was indeterminable. * Noted that, the goods were detained only on the ground of non-accompaniment of e-way ....
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....bill and delivery challan, but the e-way bill had been generated and was submitted before the detention order. * Held that, none of the authorities below recorded any finding of tax evasion, which is essential for invoking Section 129. * Observed that, the case was covered by prior rulings in Vacmet India Ltd. and Goverdhan Oil Mill, where similar facts led to quashing of detention orders. *....
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.... Held that, the impugned orders dated July 10, 2023, and January 29, 2021, were unsustainable and quashed them accordingly. (Author can be reached at [email protected])<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....