REGARDING APPEAL AGAINST ORDER OF DRC-07 FOR NOT GENERATING E WAY BIILL

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This query is : Resolved

Suresh S. Tejwani (Querist)
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06 August 2024 If e way bill was not generated and 200% penalty was imposed u/s 129(3), such penalty was duly paid
Now order of DRC-07 is issued mentioning such penalty liability,
So now can we file appeal against such DRC-07 order?
If yes on what grounds such appeal can be filed?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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12 August 2025 Yes, you can file an appeal against the DRC-07 order if you believe the penalty is not justified or there are valid grounds to challenge it.
Understanding the situation:
Penalty imposed u/s 129(3) for non-generation of e-way bill.
You have already paid the penalty.
Now, DRC-07 order confirms the penalty liability.
You want to know if you can appeal the DRC-07 order and on what grounds.
Can you appeal against DRC-07?
Yes, an order passed under Section 129(3) (detention, seizure and release of goods) can be challenged.
Appeal can be filed before the Appellate Authority under GST law.
Usually, the appeal lies with the Commissioner (Appeals) or the Appellate Tribunal (depending on the stage and jurisdiction).
Grounds for appeal against penalty under Section 129(3):
Penalty is excessive or not justified:
If you believe 200% penalty is disproportionate.
Argue that the penalty amount should be lesser or waiver should be granted due to circumstances.
Procedural lapses:
If proper notice was not given before penalty.
If principles of natural justice were not followed.
No intention of evasion or negligence:
Show that non-generation of e-way bill was due to genuine reasons (e.g., technical issues, human error).
Demonstrate that goods were not moved illegally or for evasion of tax.
Compliance done after notice:
If e-way bill was generated after seizure/detention or before penalty, this can be a mitigating factor.
Payment of penalty is not an admission of guilt:
Payment under protest or without prejudice can be argued.
Procedure to file appeal:
File appeal within 3 months from date of communication of DRC-07 order.
Appeal must be filed online on GST portal or as per local appellate authority’s process.
Attach grounds of appeal and relevant documents.

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