D.S Traders Vs Commissioner (GSTAT Lucknow)
Summary: The GSTAT, Court No. I, considered an appeal by D.S Traders against penalty proceedings under Section 129(3) of the U.P. GST Act, 2017 arising from transportation of an excavator without an e-Way Bill. The appeal was filed against the original adjudicating authority’s order No. ZD090725182974N dated 18.07.2025 and the First Appellate Authority’s order dated 27.11.2025 concerning goods transported in vehicle No. UP78GN8559.
The appellant’s case was that the excavator had been sent to the work site of M/s OPSIS Projects India Pvt. Ltd. at Trans Ganga City, Unnao, under a valid job work agreement and was being brought back to its registered place of business at Kanpur. The vehicle was intercepted on 18.07.2025 and the goods were accompanied by Delivery Challan No. 01. The machine was stated to be worth approximately Rs. 9,00,000. The proper officer imposed a total penalty of Rs. 3,24,000, comprising Rs. 1,62,000 CGST and Rs. 1,62,000 SGST, under Section 129(3).
The appellant contended that the movement was not pursuant to a sale and involved its own machinery being returned from a project site. It relied upon the Delivery Challan and argued that the consignor and consignee bore the same GSTIN, 09GYMPS0010J1Z7. According to the appellant, there was no buyer, recipient or transferee and the machinery was merely being repositioned. It further submitted that no taxable supply was involved and referred to Section 7 of the CGST/UPGST Acts. The appellant also asserted that Uttar Pradesh had notified an exemption for movement within 20 kilometres within the State where accompanied by a valid Delivery Challan, and maintained that both conditions were satisfied.
