The Lucknow Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 28 September held that the penalty is not levied u/s 129 of the Central Goods and Services Tax Act, 2017, only for a procedural lapse in generating an e-invoice without material showing tax evasion.
A Bench, Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar, permitted the appeal of the VLM Null Group against the order of the Additional Commissioner, Grade-II, State Tax, Kanpur, levying a penalty of Rs. 63.72 lakh. The Tribunal said that-
“The mere establishment of a procedural irregularity does not dispense with the requirement of determining whether the particular facts justify the consequence imposed under Section 129.”
VLM Null Group was transporting four FFS machines and parts from Bhiwandi, Maharashtra, to Barabanki, Uttar Pradesh. With a tax invoice, E-Way Bill, and LR, the consignment was detained on 6 October 2024.
The officer discovered that the invoice did not include the required Invoice Reference Number and detained the goods. The officer levied a penalty of Rs 63.72 lakh, representing 200% of the IGST.
The Tribunal observed that the e-invoice was generated on 8 October 2024, before the seizure proceedings were completed. During seizure, the tax invoice, E-Way Bill, and transport documents were available, and the transaction was identifiable and matched the generated e-invoice. No evidence was found to prove tax evasion or to indicate that the transaction was fictitious.
Therefore, the GSTAT quashed the order and permitted the appeal with consequential relief.
| Case Title | VLM Null Group vs. The Additional Commissioner |
| Case No. | APL/98/LCK/2026 |
| For Petitioner | Shri Hari Om Porwal |
| For Respondent | Mr Mahendra Pratap Singh |
| GSTAT Lucknow | Read Order |
