Index of Relevent Files CGST rule 138

PORTAL RELATED UPDATES

Date	Subject
16.06.2025	Introduction of Enhanced Inter-operable Services Between E-Way Bill Portals
06.02.2025	Advisory On E-Way Bill Generation For Goods Under Chapter 71
27.01.2025	Advisory on the Introduction of E-Way Bill (EWB) for Gold in Kerala State
24.01.2025	Advisory on Business Continuity for e-Invoice and e-Waybill Systems
01.01.2025	Advisory to Taxpayers on Extension of E-Way Bills Expired on 31st December, 2024.
23.12.2024	Advisory for Entry of Receipt Numbers Pertaining to Leased Wagons in the E-Way Bill System.
18.12.2024	Advisory for Entry of RR No./eT-RRs in EWB system Post EWB-FOIS Integration.
17.12.2024	Advisory on Updates to E-Way Bill and E-Invoice Systems.
04.10.2024	Advisory on Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Post EWB-PMS Integration.

CIRCULARS

Circular No.	Subject
Circular No. 64/38/2018-GST dt.14.09.2018	Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No.41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018
Circular No.38/12/2018-GST dt. 26.03.2018	Clarifications on issues related to Job Work regarding Registration, Place of supply etc

COMMUNITY INSIGHTS

Topic		Publish Date
	Gujarat HC Quashes GST Penalty for E-Way Bill Part-B Lapse: Upholding the Core of Natural Justice The Gujarat High Court has once again reinforced the importance of audi alteram partem—the foundational principle of natural justice—while adjudicating GST disputes. In Tractors and Farm Equipment Ltd. v. Union of India [2025(07)LCX0356], the Court set aside a penalty imposed under Section 129 of the CGST Act, 2017, solely on the ground that the order was passed without granting the assessee a meaningful opportunity to be heard. .......... Read More	06.08.2025
	Detention Under Section 129 CGST Not Sustainable for Mere Technical Infractions The Goods and Services Tax (GST) regime, introduced in India in 2017, aimed at simplifying the indirect tax structure and streamlining inter-state trade. However, its implementation has often been fraught with challenges, particularly concerning the interpretation and application of provisions related to the movement of goods. One such provision, Section 129 of the Central Goods and Services Tax (CGST) Act, 2017........... Read More	11.07.2025
	Typographical Error in E-way bill - Should Penalty be Imposed? As we know that before the movement of goods the e-way bill is required to be generated, non generation of e-way bill can lead to a penalty u/s 129 of CGST Act during the transit. However while generating the e-way bill on the e-way bill portal, sometimes the typographical or clerical errors are made like the error in mentioning the distance, error in mentioning the vehicle.................... Read More	17.04.2025
	E-Way Bills Without GSTIN: A Game-Changer for Unregistered Persons Picture this: A skilled artisan from a remote village, meticulously crafting hand-embroidered textiles and other handcrafted goods. A boutique in another state wishes to purchase these unique creations, but neither the artisan nor the boutique is registered under GST. How can they legally transport the goods across state lines without violating GST regulations? Earlier, in such cases, either the transporter had to generate the E-way Bill........................ Read More	25.02.2025
	Understanding the E-Way Bill System The E-way bill system is a crucial component of India’s Goods and Services Tax (GST) regime. The Statutory requirement of e-way bill is covered under Section 68 of the CGST Act & Rule 138 of the CGST Rules, 2017. The E-way bill ensures the smooth and regulated transportation of goods across state borders. This article delves into the details of what an E-way bill is, when it is required, who is responsible for generating it, and other special cases................ Read More	19.09.2024

CASE LAW

Authority	One liner
2025(07)LCX0322 Supreme court of India Asp Traders	A reasoned final order under Section 129(3) must be issued even if tax/penalty is paid, to safeguard appeal rights and procedural fairness.
2025(07)LCX0193 Calcutta High Court Hari Rama Constructions @ Moka Ramakrishna	Penalty under Section 129 cannot be imposed for mere technical lapses without tax evasion intent.
2025(07)LCX0140 Allahabad High Court Tirupati Agro Commodities	GST penalty cannot be imposed under Section 129 solely on grounds of misclassification without intent to evade.
2025(07)LCX0081 Calcutta High Court Jageswar Saw	Misdeclaration as an unregistered person was a deliberate attempt to evade tax and the same amounts to penalty under section 129 of CGST Act
2025(06)LCX0467 Madras High Court STP Ltd.	GST penalty proceedings under Section 129 require a speaking order when the penalty is paid under protest and no final adjudication has occurred.
2025(04)LCX0172 Allahabad High Court Lalitpur Power Generation Company Limited	GST penalty is upheld due to invalid and mismatched e-way bills during goods transit asviolated Sections 68 and Rule 138 of the GST Act
2025(04)LCX0141 Allahabad High Court Aries Agro Limited	GST authorities must issue Form GST MOV-09 i.e. penalty order even if the penalty is paid under protest, to enable the right to appeal.
2025(04)LCX0068 Allahabad High Court Raman Metal Works	Since the supplier firm was non-existent at the time the issued tax invoice is invalid rendering the transaction a sham and violating GST rule 138.
2025(03)LCX0233 Allahabad High Court Jaya Traders	Seizure can be made even on the ground of under valuation, if under valuation is deliberate for the purpose of avoiding payment of tax or to defeat the provisions of the Act.
2025(02)LCX0163 Allahabad High Court Zhuzoor Infratech Private Limited	Penalty and proceedings against the assessee are quashed as there is a technical error in the e-way bill and it did not affect the goods' details
2024(11)LCX0192 Allahabad High Court A N Enterprises	Once the fact is settled that HSN Code and rate of tax is similar and assessee would not gain in not mentioning correct description of items or state would loose its legitimate tax, assessee can not be held liable u/s 129 of GST Act.
2024(08)LCX0100 Allahabad High Court Aa Plastics Private Limited	Order seizing goods and levying penalty under Section 129 of the CGST Act is quashed, citing minor breach and absence of intent to evade tax, and instead suggests proceedings under Section 122 of the CGST Act.
2024(07)LCX0525 Allahabad High Court Exide Industries Ltd.	Power of detention as well as seizure can be exercised only when the goods were not accompanying with the genuine documents provided under the Act, which is not disputed in case in hand.
2024(07)LCX0020 Allahabad High Court Nanhey Mal Munna Lal	Penalty u/s 129(3) GST Act is set aside due to a typographical error of different dates on the E-way Bill and Tax Invoice.
2024(06)LCX0285 Karnataka High Court Transways India Transport	Appeal challenges Penalties and release a seized vehicle over a disputed goods transport route deviation is quashed a sit is fundamental right to conduct business freely.
2024(05)LCX0125 Allahabad High Court Raghuveer Ispat Private Limited	Expired e-way bill from engine failure is a technical violation, not tax evasion; penalty is not warranted under Section 129(3) of CGST Act.
2024(05)LCX0121 Allahabad High Court Axrecycle Private Limited	Non filling up of Part 'B' of the e-Way Bill, without any intention to evade tax cannot lead to imposition of penalty u/s129(3) of the Act.
2024(05)LCX0049 Allahabad High Court Prahlad Rai Vijay Kumar	Penalty u/s 129(3) of GST Act, 2017 cannot be imposed when there is no intention to evade tax.
2024(05)LCX0029 Allahabad High Court Mid Town Associates	Absence of an E-Way bill during transit constituted a technical violation only, not a tax evasion.
2024(05)LCX0012 Calcutta High Court Maa Amba Builders	Goods intercepted within 24 hours from the expiry of the validity of the e-way bill, including there being no evidence of evasion of tax needs to be released.
2024(04)LCX0599 Allahabad High Court Goverdhan Oil Mill	No GST penalty is leviable under Section 129 for genuine stock transfers lacking tax evasion intent.
2024(04)LCX0478 Allahabad High Court Sangeeta Jain	Error of Dispatch address in E-Way Bill without any intention to evade tax cannot lead to imposition of penalty.
2024(04)LCX0459 Allahabad High Court L.D. Goyal Steels (P) Ltd.	Not just expiry of e-way bill but mens rea to evade tax is essential for imposition of penalty under Sec 129(3) of GST Act.
2024(04)LCX0366 Rajasthan High Court Hindustan Trading Co.	Order u/s 129 (3) CGST Act is unjustified as issue was not absence of e-way bill, but expired e-way bill during transit & heavy penalty for such minor offence is unacceptable.
2024(03)LCX0317 Madras High Court Ganesh Engineering	Assessee is directed to file appeal against order u/s 74 demanding tax, interest and penalty due to duplicate eway bills, before revenue after payment of 15% of disputed tax amount.
2024(03)LCX0006 Allahabad High Court Ridhi Sidhi Granite And Tiles
2024(02)LCX0381 Allahabad High Court Varun Beverages Ltd.	Non filling up of Part 'B' of the E-Way Bill by itself without any intention to evade tax would not lead to imposition of penalty under Section 129(3) of the Act.
2024(02)LCX0100 Allahabad High Court Indeutsch Industries Private Limited	Intention to evade tax is sine qua non before imposition of penalty.
2024(02)LCX0061 Allahabad High Court Anchor Health And Beauty Care Private Limited	Impugned orders are arbitrary having levied tax on the petitioner on the goods meant for stock transfer between one branch to another.
2024(02)LCX0050 Allahabad High Court Spirare Energy Private Limited	Technical violation by petitioner without any intention to evade tax cannot lead to imposition of penalty.
2024(02)LCX0049 Allahabad High Court Globe Panel Industries India Private Limited	Technical violation by petitioner without any intention to evade tax cannot lead to imposition of penalty under Section 129(3) of the Act.
2024(02)LCX0043 Allahabad High Court Abilities Pistons And Rings Limited	Technical faut in Non filling up of Part B of the E-Way Bill without any intention to evade tax cannot lead to imposition of penalty.
2024(01)LCX0494 Allahabad High Court Precision Tools India	Defect in filing e-way bill being purely of technical nature only and without any intention to evade, makes the seizure order illigal and void.
2024(01)LCX0383 Allahabad High Court Shamhu Saran Agarwal And Company	Goods are not to be detained on the ground of under valuation.
2024(01)LCX0045 Allahabad High Court Hindustan Herbal Cosmetics	A typographical error in the e-way bill without any further material to substantiate the intention to evade tax should not and cannot lead to imposition of penalty.
2023(11)LCX0014 Allahabad High Court Sunflag Iron & Steel Co. Ltd.
2023(10)LCX0406 Supreme court of India Vardan Associates Private Limited	Penalty reduced due to absence of intentional evasion; GST demand upheld.
2023(10)LCX0049 Allahabad High Court Vacmet India Ltd.	Proceedings are vitiated when there was no intention to evade payment of tax.
2023(10)LCX0007 Allahabad High Court Shyam Sel & Power Ltd.	For invoking the proceeding under section 129(3) of the CGST Act, section 130 of the CGST Act was required to be read together
2023(09)LCX0353 Uttarakhand High Court Prestress Steel LLP	Mere non production of the delivery challan cannot lead to revocation of section 129
2023(02)LCX0025 Allahabad High Court Varun Beverages Ltd.	As there is no dispute to the fact that it is a case of stock transfer and there is no intention on the part of dealer to evade any tax, the minor discrepancy as to the registration of vehicle in State in the e-way bill would not attract proceedings for penalty under Section 129 and the order passed by the detaining authority as well as first appellate authority cannot be sustained.
2022(08)LCX0179 Calcutta High Court Vardan Associates Private Limited	Writ jurisdiction cannot be invoked when penalty under Section 129 is legally and procedurally valid.
2022(03)LCX0289 Madhya Pradesh High Court CREATE CONSULTS	Mistake of wrong mention of name in e-way bill is clerical mistake thus, proceeding under Section 129 of GST may not be issued.
2022(01)LCX0062 Supreme court of India Satyam Shivam Papers Pvt. Limited
2021(06)LCX0015 Telangana High Court Satyam Shivam Papers Pvt. Ltd	Order u/s 129(3) issued for expiry of E Way bill without any evidence of evasion of tax is set aside
2021(01)LCX0099 Allahabad High Court Anandeshwar Traders
2020(11)LCX0145 Karnataka High Court Hemanth Motors
2020(08)LCX0040 Kerala High Court ABCO TRADES (P) LTD	No detention of goods u/s 129 on ground that e-way bill show consignee as unregistered person.
2020(03)LCX0048 Kerala High Court Hindustan Coca Cola Private Limited	Detention of goods not possible on ground that there is dispute in rate of GST.
2019(08)LCX0055 Patna High Court Ram Charitra Ram Harihar Prasad	As fresh e-way bill generated before passing of detention order, therefore detention order quashed
2018(04)LCX0060 Allahabad High Court VSL Alloys (India) Pvt. Ltd.	Merely of none mentioning of the vehicle no. in Part-B cannot be a ground for seizure of the goods where the goods are transported for a distance of upto 50 kms within the State upto place of transporter
2018(07)LCX0036 Madhya Pradesh High Court Gati Kintetsu Express Pvt. Ltd.	Goods detained for not uploading Part-B of EWB
2017(11)LCX0054 Allahabad High Court Ramdev Trading Company	Seizure and penalty order unsustainable in absence of any allegation of evasion of tax