Section 129 of the CGST Act, 2017 – Goods in Transit -–- The petitioner transported its own machinery from Arunachal Pradesh to Jammu by two trailers. The respondent intercepted said trailers on 26th December, 2022. The driver produced the e-way bill but failed to produce the tax invoice and delivery challans. The petitioner referred Circular No.80/54/2018-GST dated 31st December, 2018 and submitted that any inter-state movement of goods for provision of service on own account by a service provider, where no transfer of title in such goods or transfer of goods to the distinct person by way of stock transfer is not involved, does not constitute a supply of such goods. Since the petitioner was transporting its own machinery from one place to another for execution of a particular work, no GST is payable in respect of the said goods. The court observed that since there is factual dispute inasmuch as no adjudication was made and a show-cause notice was served.

Held that:- The Hon’ble High Court directed the petitioners to submit a reply to the adjudicating authority within 3 days and the adjudicating authority thereupon shall adjudicate as to whether that petitioner is liable to pay any penalty or not after giving opportunity to the petitioners or their authorized representative of hearing within a fortnight thereafter.