Goods in Transit — Section 129 of the CGST Act, 2017—The petitioner challenged the order of detention made under Section 129 (1) of Act and order of demand issued by the respondent. The petitioner submitted that he can demonstrate that E-Way Bill was generated and produced for inspection. Therefore, the proceedings initiated through these orders are not warranted and illegal. The respondent submitted that at the time of inspection, the petitioner could not produce all the documents required for establishing that the goods is under valid transit. That Section 129 deals with and provides for not only detention but also for release of goods, subject to the petitioner complying with the mandate of Section 129 of the Act. The petitioner can furnish the bank guarantee for the tax and penalty amount demanded for release of goods.
Held that:- The Hon’ble High Court directed the petitioner to submit bank guarantee for the tax and penalty and apply for release of goods within two days. The respondent shall release the goods detained within twelve hours from the date and time of receipt of bank guarantee. The bank guarantee shall be kept valid for six weeks. The respondent shall complete the enquiry, afford fair and reasonable opportunity and pass and communicate this order within four weeks. The respondent, if fails to pass the order, the petitioner is not under obligation to keep the bank guarantee alive beyond six weeks.—Bobby O.S. Vs. State of Kerala, Assistant State Tax Officer  21 TAXLOK.COM 145 (Kerala)