Section 129 of the CGST Act, 2017 — Goods in Transit –- The petitioner challenged the detention order passed under Section 129 of the Act. The petitioner submitted that whether a person who opts to make payment in terms of Clause (a) of Sub-Section (1) of Section 129 of the Act to get goods/conveyance/documents detained or seized for release is deprived of his right to file an appeal against the proceedings. The State contended that on account of the stipulation in sub-section (5) of Section 129, all proceedings which are the subject matter of a notice “shall be deemed to be concluded”. The court observed that provisions of sub-section (5) or Section 129, only contemplate that the procedure for detention on seizure of goods or documents or conveyances come to an end and it is always open to the person who suffers proceedings under Section 129 to challenge those proceedings if he feels that the demand has been illegally raised on him. Further, Section 107 provides that any person aggrieved by any decision, or order passed under the Act by an adjudicating authority, may appeal to such appellate authority as may be prescribed, within three months from the date of communication of the order.

Held that:- The Hon’ble High Court allowed writ petitions and directed the respondent to do the needful within one month. In order to prevent the recurrence of such issues, the Commissioner, Office of the State GST Department, Thiruvananthapuram will issue an appropriate circular taking note of the aforesaid findings.