Section 129 of the CGST Act, 2017 — Goods in Transit –- The petitioner challenged the proceedings under Section 129 before the 1st Appellate Authority, who also confirmed the proceedings of the original authority. The petitioner apprehends that pending the constitution of the State Appellate Tribunal, the bank guarantee provided by the petitioner may be invoked. The court observed that the provisions of Section 112 (8)(b) requires the petitioner to deposit a sum equivalent to 20% of the tax amount in dispute as a condition for maintaining an appeal before the Tribunal.

Held that:- The Hon’ble High Court directed the petitioner to deposit a sum equivalent to 20% of the tax amount in dispute as a condition for stay of invocation of bank guarantee. The petitioner shall keep the bank guarantee alive and if the petitioner does not renew the bank guarantee within time, it will be open to the officer to invoke the bank guarantee.