TaxTMI 
TaxTMI 
2026 (8) TMI 1488
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 129(3) of the CGST/UPGST Act, 2017 and the consequential order passed by the First Appellate Authority in Appeal No. AD0905250107428/2025. By the impugned order, penalty of Rs.2,63,330/-, comprising CGST Rs. 1,31,665/- and SGST Rs. 1,31,665/-, was imposed upon the appellant. The said amount was admittedly deposited by the appellant. The appeal record reflects the aforesaid penalty and payment particulars. Question of law involved. Since the goods (Scrap) 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. BRIEF FACTS The appellant, M/s Lucknow Automotives, is a registered proprietorship concern engaged in the business of purchase a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....goods. The goods were motorcycles identifiable by engine and chassis numbers. The transaction was duly recorded in the books of account, no discrepancy in quantity, value or classification was found, no loss of revenue, the supporting documentary evidence was not properly appreciated. The penalty was excessive and disproportionate. The proceedings were initiated without establishing any intention to evade tax. The following precedents were referred by the appellant- 3.1 M/s Uttam Electric Store In M/s Uttam Electric Store v. State of U.P. & 2 Others, Writ Tax No. 153 of 2021, decided on 26.07.2024, the Hon'ble Allahabad High Court recognized that where an E-Way Bill lapse is attributable to bona fide human error and there is no mat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... quantity, undervaluation, wrong classification, fake consignee, suppression of transaction, unaccounted goods and loss of revenue. It is submitted that motorcycles are highly identifiable goods having engine and chassis numbers as well as are subject to R.T.O. registration, making the transaction completely traceable. The Appellant relied upon some further more judgments which are as under: Himachal Pradesh High Court held Section 129 penalty requires intent to evade tax; quashed penalty for technical e-way bill lapse and ordered release of bank guarantee with interest - Kunal Aluminum Company v. State of Himachal Pradesh, (2025) 16 GSTJ Online 373 (HP) : (2025) 55 GSTJ 587. The Allahabad High Court quashed Section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the material on record. It is undisputed that the E-Way Bill was generated approximately nine minutes after interception. Thus, there was a procedural lapse at the time of interception. The goods were motorcycles, fully identifiable through their invoice particulars and engine and chassis numbers as well as subject to R.T.O Registration. The transaction was supported by purchase and sale invoices, challans, ledger accounts and bank records. No discrepancy in quantity, value or classification has been found, and there is no material on record indicating suppression, undervaluation, fake documentation, unaccounted goods or any intention to evade tax. 7. FINDING After considering the entire material, we record the following findings:....