Section 129 of the CGST Act — Goods in Transit – The petitioner transported goods from Karnataka to Delhi. The respondent intercepted the vehicle and seized the truck and the goods on 07.03.2019. A notice under Section 129(3) in Form GST MOV-07 dated 07.03.2019 was issued requiring the payment of tax and equal penalty. The petitioner claimed that the e-way bill and the invoice relating to the transport by another vehicle was handed over to the driver by mistake and that the correct e-way bill along with the invoice showing the payment of the Tax was furnished before the Tax officials, which was not accepted. The petitioner made a payment of tax and penalty. Thereafter, the vehicle and the goods were released on 08.03.2019. The vehicle and the goods were again seized at Bijapur on 10.03.2019 on the ground that the documents tendered were found to be defective. The petitioner submitted that once the tax and penalty is paid, all proceedings are deemed to be concluded as provided under Section 129(5). Therefore, subsequent proceedings to seize the very same lorry and the goods is illegal. He relied on the Judgment of the Allahabad High Court in VSL Alloys (India) Pvt., Ltd., vs. State of U.P. and another in Writ Tax No.637/2018. The respondent submitted that the party was engaged in evasion of taxes.
Held that:- The Hon’ble High Court held that in a proceeding under Section 67, the respondent was not justified in seizing the perishable goods in transit, when the goods had suffered tax and penalty. Accordingly, allowed the writ petition and directed the respondent to release the lorry and the goods.—Venkateshvara Logistics Fleetowners And Transport Contractors Vs. The Assistant Commissioner of Central tax & Central Excise, Customs & Service tax, Bijapur Division, Vijayapur  27 TAXLOK.COM 053 (Karnataka)