Section 129 of the CGST Act, 2017 —Goods in Transit –--The petitioner challenged the action of the respondent under Section 129 of the Act. The petitioner’s goods during transit were intercepted by respondent on 27.11.2021. The goods were accompanied by valid Invoice and e-way bill. The respondent issued Order of Detention under Section 129(1) of the Act. The petitioner submitted that the proceedings under Section 129 of the Act against him are without jurisdiction. The Counsel for the respondents submitted that on physical verification discrepancy was found in the actual quantity and the quantity shown in Invoice and e-way bill. Actual quantity was found to be 90 kgs. 700 gms. more than what has been found as per Invoice. The court observed that quantity of consigned goods is shown to be 10430.7 kilograms, whereas as per the State, it was 10520 kilograms. The said difference in weight is less than 1%. As per State, the alleged evasion shall not be more than Rs.11000/-. Thus, it cannot be said that the petitioner had any intent to evade the tax or the mismatch in the quantities is of such nature which shall entail proceedings under Section 129 of the Act. The mismatch cannot be termed as contravention of the provisions of the Act.

Held that:- The Hon’ble High Court quashed the Proceedings under Section 129 of the Act. Fine and penalty, if any, imposed against the petitioner and deposited by him, be refunded to him within a period of 15 days. Since goods already stand released, no further order is required.