Order dated : 17 July 2025 

Parties: M/s Gaylord Packers India Pvt. Ltd. V. State of U.P. & Ors.

Facts -

• The petitioner, is engaged in manufacturing and sale of polyester films, was transporting goods from Ghaziabad to Delhi based on a valid invoice and e-way bill. 
• However, Authorities imposed a penalty under Section 129 of the GST Act, as during transit, the consignment was seized on 12.02.2019 at Ghaziabad due to a mismatch in invoice number on e-way bill which is attributed as a clerical error. 

Issue -

• Whether minor typographical errors in e-way bills without any intention to evade tax justify seizure and penalty under Section 129 of the GST Act?

Order -

• The single bench of the Hon’ble high court relied on the decision passed in case of M/s Cavendish Industries Ltd., and held that the principle that emerges is that presence of mens rea for evasion of tax is a sine qua non for imposition of penalty. A typographical error in the e-way bill without any further material to substantiate the intention to evade tax should not and cannot lead to imposition of penalty
• In view of facts and circumstances of the case as well as looking to the aforesaid judgement, the impugned orders cannot be sustained in the eyes of law and same are hereby quashed.