Section 129/130 of the CGST Act, 2017— Goods in Transit –––- The petitioner challenged an order dated 02.11.2022 passed under Section 129 of the Act. The counsel for the petitioner submitted that the goods seized represent replacement for defective batteries, which would be evident from the delivery challan. However, by mistake, it is submitted that in the E-way bill, it was indicated as “outward supply”. The order ought to have been passed within 7 days but it is beyond the period prescribed under Section 129(3). The respondent counsel submitted that consignment shall be released on payment of penalty of one time tax i.e., 100% tax and it is open to the Petitioner to file an appeal. The counsel for the Petitioner submitted that they are willing to pay one time tax for release of consignment and submit that the payment of 100% of tax as penalty may be adjusted towards 25% pre-deposit for filing an appeal.

Held that:- The Hon’ble High Court directed that the Respondents shall release the consignment on the Petitioner paying 100% tax forthwith. In the event of the Petitioner filing an appeal, 100% taxes paid shall be adjusted towards 25% pre-deposit for filing appeal.