Section 130 of the CGST Act, 2017—Goods in Transit –The petitioner challenged the confiscation notice dated 4th December 2021 passed under Section 130 of the Act. It is alleged that the consignment was intercepted by the respondent No.3 on 20th November 2021. The respondent detained vehicle on the ground that the vehicle was travelling to the different direction than the direction of destination. So the goods were not moving to the place destined for and the value of goods being transported is shown Rs.286/- which is to low compared to its Real Market Value i.e. 330/-.” The court observed that merely the direction preferred by the petitioners for delivery of consignment to the place destined for, an inference cannot be drawn with regard to the intention of the petitioners to evade tax. Regarding undervalution, no material has been placed on record. Even otherwise, undervaluation cannot be a ground for seizure of goods in transit.

 Held that:- The Hon’ble High Court quashed the confiscation proceedings and ordered for release of the vehicle as well as the goods at the earliest.