GSTAT: GST Demand cannot be construed solely on E-Way Bill Values without evidence of Taxable Supply

GSTAT Chandigarh holds that tax cannot be demanded merely on the basis of the value of goods reflected in e-way bills, without independent evidence establishing that the goods constituted taxable supplies made by the taxpayer. The Department had raised a demand of ₹36.93 lakh by comparing the value reflected in e-way bills with the tax liability declared in GSTR-1 and GSTR-3B, treating the entire consignment value as the appellant's turnover despite its claim that it was engaged only in job work. GSTAT observes that the documents, including delivery challans, e-way bills and job-work invoices, establish the movement of goods belonging to principal manufacturers for job work and the appellant's payment of GST on job-work charges. The Tribunal further clarifies that under Rule 138 of the CGST Rules, either the principal manufacturer or the registered job worker may generate an e-way bill for movement of goods for job work, and the identity of the person generating it is immaterial so long as the consignor and consignee details are correctly declared. Since the Department produced no evidence establishing that the appellant had supplied the goods or evaded tax, the Tribunal sets aside the demand of tax, interest and penalty and quashes the appellate order. 

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