Justification of 100% penalty for non-compliance of E-way Bill Rules?
Section 126 mandates that no penalty shall be levied for minor breaches of tax regulations or procedural requirements. Accordingly, non-mentioning of a vehicle no. in part-B of E-way bill should be treated as minor breach especially where goods are carried with a proper tax invoice, an ability no. showing vehicle No. and RC of vehicle etc.
As Rule of E-way bill has been made effective since April 2018 in case of Inter-State movement of goods and States have also made e-way bill mandatory for intra-state movement of goods. Nowadays GST authorities are intercepting vehicles and detaining goods along with a vehicle in absence of e-waybill or incomplete e-way bill, i.e. Part-B is not filled. The absence of document/incomplete document may be deliberate or due to mistake or GSTN glitches. After the interception, detention/seizure order under section 129(3) is passed, thereafter SCN is issued under section 129(3) and goods are released only on payment of GST and penalty equivalent to GST liability.