Goods in Transit — Section 129 of the CGST Act, 2017— The writ applicant engaged in the business of trading of various goods more particularly Tobacco has prayed (a) to quash and set aside the impugned undated Notice issued under Form MOV-10 by the respondent, under Section 130 of the Act (b) to direct the respondent to release the goods under detention, upon the petitioner securing an amount of Rs. 9,94,000/-, which is equivalent to the amount of tax demanded along with penalty at the rate of 100% of such tax demanded. The petitioner submitted that they purchased unmanufactured Tobacco and transported through the vehicle. When the original vehicle was 4-5 kms away from its destination, it broke down. Thereafter, another vehicle was arranged and the goods were transferred up to its destination. However, just before the said second vehicle could reach the destination, it was intercepted by the authorities. The vehicle and the goods were accordingly seized only for the discrepancy in the e-way bill that the vehicle number was not correlated.
Held that:- The Hon’ble High Court held that the respondent should be permitted to adjudicate the show cause notice in accordance with law. Further directed the writ applicant to deposit an amount of Rs. 10,00,000/- with the concerned authority towards tax and penalty and to furnish Bank Guarantee of Rs. 7,00,000/-. Thereafter, the authority concerned shall release the goods and the vehicle at the earliest.—Om Sai Traders Vs The State Tax Officer [2020] 25 TAXLOK.COM 020 (Gujarat)