Order Date: 9th July 2025
Key Facts:
- The petitioner, Vishalfab (India) Pvt. Ltd., imported machinery from China in 2018 and transported it from Nhava Sheva port (Maharashtra) to Indore.
- An E-Way Bill was generated on 09.08.2018, but Part-B (vehicle details) was not filled, making the E-Way Bill incomplete and invalid.
- The vehicle was intercepted on 11.08.2018. The goods were seized under Section 129(1) of the GST Act, and a tax and penalty of ₹2,99,208/- was imposed.
- The petitioner paid GST in advance and argued that filling Part B was the transporter’s duty, not the consignor’s.
- The Appellate Authority and Adjudicating Authority upheld the penalty; hence the petitioner approached the High Court.
Court’s Findings:
- Rule 138(2) of MPGST Rules mandates the registered person must furnish vehicle details in Part-B before movement if goods are moved by road.
- Non-filing of Part-B is not a minor breach or technical error; it renders the E-Way Bill invalid for transport purposes.
- The Court held the petitioner grossly negligent as neither the petitioner nor the transporter updated Part-B despite transporting goods over a span of 800 km and two days.
- The Court rejected the petitioner’s reliance on case laws (Satyam Shivam Papers, Technosteel Infraprojects, etc.) stating that those cases involved minor or bona fide discrepancies, unlike the present case which involved serious non-compliance.
Conclusion:
The High Court dismissed the writ petition and upheld the penalty imposed under Section 129 of the GST Act. It held that failure to generate and upload Part-B of the E-Way bill cannot be classified as a minor omission and is a valid ground for seizure and penalty.
Legal Implication: