2026 (8) TMI 1489

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....) were being transported without E-way Bill, which is mandatory under Rule 138(1). Therefore, we find the matter should be heard in Division Bench. 2. Brief Facts The records reveal that on dated 08.03.2018, vehicle No. UP-25 CT-8554, carrying iron scrap, was intercepted by the Mobile Squad Unit III, Barielly. Though the goods accompanied by a tax invoice and other documents, weighing 55.55 Kg. and valued at Rs. 83,323/- but were not accompanied by a E-Way Bill, as mandated under Rule 138(I) of the UPGST Rules. Accordingly, proceedings under Section 129 were initiated, resulting in the order dated 09.03.2018 confirming tax of Rs. 15,000/- and penalty of Rs. 15,000/-, aggregating to Rs. 30,000/-. The First Appellate Authority, howev....

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....ine process, whereas the tax-invoice is issued manually by the taxpayer.If the trader generated the E-way bill online, it would have appeared in his outward supply records preventing him from manipulating his books of accounts at his convenience. This fact established the trader's intention to evade tax. • The loading of goods is shown at Baheri, Barielly (Uttar Pradesh) and the delivery is shown at Kichha (Uttarakhand). Baheri is situated near Uttarakhand, the distance from Baheri to Kichha is approximately 25 km. Since the Transportation of sensitive goods such as iron scrap without E-way bill, further highlights the trader's intent to evade tax. 4. Submissions of Respondent - The respondent, despite being afforded adeq....

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....dents in his order to support his stand, as follows- In case of Singh Tyre v. State of U.P. (2018) 98 Taxmann.com 388, before the hon'ble Allahabad High Court "If the goods are being accompanied with proper documents and E-way Bill has been produced along with the reply to notice then the seizure cannot take place" The Hon'ble Allahabad High Court order in case of M/s Harle Foods Products Pvt. Ltd. v. State of U.P. and others (2018) 37 V.L.J. -16 "U.P. Goods and Services Tax Act, 2017 section 129(I) and 164 e-Way bill 01 not produced at the time of interception of goods along with other documents-Goods-seized presumption-intention of evade tax all the requisite documents including e-Way bill were with the goods intention to evade tax ....

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....evade tax". The Hon'ble Allahabad High Court order in case of M/s Rai Prexim India Private Limited Vs. State of Kerala 2019 NTN (Vol.70) -29 "If a human error which can be seen on naked eye is detected, such human error cannot be capitalized for penalization." We have gone through above all precedents thoroughly. We find that the contents of those judicial pronouncements are not similar to the present case because we find in the present case E-way bill generation is an online process where as the tax invoice issued manually by the tax payer, preventing generation of E-way bill leads to manipulation in his books of accounts at his convenience. Therefore, we are of the opinion that, in such circumstances conducting a transaction without....