Section 129/130 of the CGST Act, 2017 —– Goods in Transit  — Provisional Release of goods/conveyance pending confiscation under Section 130 of the Act- The applicant challenged prayed for release of the goods and conveyance confiscated under Section 130 of the Act. The applicant applied for provisional release of goods under Section 67(6) pending confiscation proceedings but the application was rejected by letter dated 11.10.2021 on the ground that such release is not possible once the proceedings are initiated under Section 130. The court observed that the respondent authorities are required to exercise powers to release goods and conveyance as provided in sub-section(6) of section 67. Section 130 is the only statutory provision providing for confiscation of goods. The contention raised by the respondents that they have no power for provisional release of the goods in transit though same are subjected to confiscation under section 130, is not tenable. The petitioners are ready to either execute a bond and furnish the security in prescribed manner and/or make payment of applicable tax, interest and penalty, the respondents authorities were not justified in denying the provisional release of the goods and conveyance as it is mandatory for the authority to exercise powers under section 67 (6) of the Act for provisional release of the goods and conveyance as there is mandate by word “shall” provided under section 67(6). The respondents authorities are required to release the goods on provisional basis in exercise of powers under section 67(6) of the Act once the show cause notice under section 130 of the GST Act for confiscation of the goods and conveyance is issued irrespective of whether goods are seized at the place of the taxable person or during the course of transit as the same would not make any difference for exercise of powers for confiscation of goods under section 130 of the Act.

Held that:- The Hon’ble High Court directed the authorities to provisionally release the goods on aforesaid conditions by applying the provisions of section 67(6) of the Act subject to adjudication of the SCN issued under section 130 in Form MOV 10 after giving an opportunity of hearing to the petitioners in accordance with law.