The Allahabad High Court in Rc Sales And Services vs State Of Uttar Pradesh quashed GST seizure and penalty orders under Section 129 of the CGST Act. The court ruled that an incorrect PIN code in the e-way bill constitutes a minor clerical error, not grounds for proceedings when all other documents are valid, the “bill to-ship to” transaction is genuine, and no tax evasion intent exists.

Key Facts
The petitioner, RC Sales And Services, supplied goods with proper statutory documents, including tax invoices and e-way bills. The sole discrepancy was a wrong PIN code for the consignee in Samastipur, Bihar, though the address was correctly stated. Authorities seized goods and imposed penalties solely on this basis.

Court’s Reasoning
The court relied on Section 126 of the CGST Act, which protects against penalties for minor breaches without reasonable doubt of evasion. It emphasized Clause 5(b) of CBIC Circular No. 64/38/2018-GST (14.09.2018), binding on authorities, stating proceedings under Section 129 should not initiate for incorrect PIN codes if addresses are accurate and e-way bill validity unaffected.

Outcome
Seizure and penalty orders were deemed arbitrary and quashed. The court directed refund of any deposited amounts to the petitioner.