GSTAT sets aside Transit Penalty for Lack of Evidence

A tanker carrying refined glycerine from Gujarat towards Ludhiana was intercepted in Kanpur Dehat, Uttar Pradesh. The Department alleged that the goods were intended for an undeclared local buyer, relying on the vehicle’s deviation from its usual route and the driver’s statement. GSTAT found that the invoice and e-way bill were valid, the transaction was recorded in the GST system, and the DRC-07 itself identified Punjab as the place of supply. With no sufficient evidence establishing an actual contravention at interception, the Tribunal set aside the penalty and directed refund of the amount deposited, subject to verification and applicable law.