Detention of goods for transporting beyond validity of e-way bill without recording finding of intention to evade tax is unjustified – Allahabad High Court {Panasonic India Pvt. Ltd. V/s Additional Commissioner (2025) 33 Centax 365 (All.)}
Facts:
- Goods in transit were detained because the e-way bill had expired.
- Before the seizure/detention order was passed, the assessee had already generated a new e-way bill and produced it to the authorities.
- Despite this, the authorities proceeded to pass a seizure and penalty order under Section 129 of the CGST Act, 2017.
Issue:
- Whether goods can be detained and penalty imposed merely due to expiry of e-way bill, without any finding that there was an intention to evade tax.
Held (Ruling of Allahabad High Court):
- Detention was unjustified because the authorities failed to record any finding of intention to evade tax.
- The fact that a new e-way bill was already generated before passing of seizure and penalty order was ignored.
- Since intention to evade tax is a necessary element, the impugned order was quashed.
