E-way bill obligations cover internal stock transfers, but penalties fail where bona fide error negates tax-evasion intent.
Case-Laws
GST
E-way bill rules require an e-way bill for internal stock transfers exceeding the prescribed value, even where goods move under a delivery challan otherwise than by supply; the challan does not replace that obligation. Transfer of tax-paid goods between a dealer's own premises, without another person or consideration, does not constitute supply and attracts no tax. Although failure to carry an e-way bill was a technical procedural breach, penalty under Section 129 was unsustainable because the goods were traceable and a bona fide misunderstanding of distance-based rules negated intent to evade tax. The penalty and related orders were set aside, with refund of the deposited penalty plus applicable interest.
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