2026 (8) TMI 1743

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.....1 Since the goods (Scrap) were being transported without E-way Bill, which is a mandatory under Rule 138(1). Therefore, we find the matter should be heard in Division Bench. The present second appeal arises from proceedings under Section 129(3) of the U.P. GST Act, 2017 regarding detention of goods for non-availability of the E-Way Bill at the time of interception. 1.2 The appellant, M/s Islam Trading Company, Baheri, Bareilly, was transporting 132.90 cubic feet of iron goods under Tax Invoice No. 29 dated 26.03.2018. On 27.03.2018, the vehicle was intercepted by the Mobile Squad, Bareilly. As the E-Way Bill was not available with the driver at that time, tax of Rs. 47,844/- and an equal penalty of Rs. 47,844/- were imposed under Sectio....

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.... at his convenience. This fact established the trader's intention to evade tax. 3.2 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. 3.3 The impugned order fails to consider the cumulative effect of the absence of the E-Way Bill, interception of the vehicle, nature of the goods, intension to evade tax and subsequent production of documents, and is therefore liable to be set aside. 4. None appeared on behalf of the Respondent. ....

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.... has held "the order of Section 129(3) as unreasonable by accepting the writ on the ground that the e-way bill was subsequently downloaded and submitted before the Mobile Dal Unit." In the case of Shri KL Industries v. State of U.P. "the order of Section 129(1) and Section 129(3) was quashed by the Hon'ble High Court. Ultimately, it was requested that the appeal be allowed and that the order passed be quashed and the disputed amount be liquidated." The Hon'ble High Court in the case of Sarv Shri Harley Foods Products Pvt Ltd. V. State of U.P. & 3 others (2018) 37 VLI-UP. "Goods and Services Tax Act, 2017 Section 129(1) and 164 e-way bill 01 not produced at the time of interception of goods along with other documents-Goods Seiz....

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.... shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of Form GST EWB -01, the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal" Thus E-Way Bill is an integral part of the statutory mechanism for monitoring movement of taxable goods. 6.2 We have carefully examined the aforesaid judicial precedents and find that the facts and circumstances considered therein are distinguishable from those of the present case. In the present case, the generation of an E-Way Bill is an online process, whereas the tax invoice is issued manually by the taxpayer. 6.3 The non-generation of an E-W....