GSTAT says Part B Omission for Local Movement Within 50 Km Cannot Attract Penalty

GSTAT Lucknow dismissed the Revenue's appeal against the setting aside of a penalty of ₹2,55,792 imposed under Section 129(3). The goods had been transported approximately 5 km from the consignor's premises to a local transporter's depot for onward transportation. The Tribunal held that this initial movement fell within the express exemption under the Third Proviso to Rule 138(3), which permits transportation without furnishing Part B details for qualifying movements within 50 km. With valid invoices, pre-generated e-invoices and physical verification disclosing no discrepancy, the omission could not be treated as evidence of tax evasion.