Can goods be treated as validly transported if accompanied by e-way bill and tax invoice issued by a supplier whose GST registration was already cancelled?

No, says the Hon’ble Allahabad High Court in M/s Raman Metal Works vs. Addl. Commissioner & Anr.
(Writ Tax No. 3 of 2022 | Order dated: 16.04.2025 | Citation: 2025 (4) TMI 1058 – ALL HC)

Brief Facts:
Goods were intercepted during transit with valid-looking documents (e-way bill & invoice). However, the supplier’s GSTIN had been cancelled 3 weeks prior to the invoice date. Authorities imposed penalty under Section 129. The taxpayer challenged it, arguing that presence of documents implies supplier’s registration was valid.

Court’s Observation:
Rule 138 mandates valid e-way bill issued by a registered supplier. Since the GSTIN was cancelled on 07.11.2020 and invoice/e-way bill dated 01.12.2020, the transaction was held to be sham. No interference warranted—writ petition dismissed.

Author’s Comments:
– Once GST registration is cancelled, any invoice or e-way bill issued thereafter is void ab initio.
– Documents issued by a non-existent supplier are not legally valid, triggering penalty under Section 129.
– Where no valid tax invoice exists, even confiscation under Section 130 may be justified.