Considering the fact that when the vehicle was intercepted, the driver was able to produce a valid E-way bill and also the invoice, at least, the goods and the conveyance should be ordered to be released
Section 129 and 130 of the CGST Act, 2017 — Goods In Transit-– The applicant prayed quashing the Order of Detention under Section 129(1) dated 02/10/2020; for quashing the Show Cause Notice under Section 130 dated 02/10/2020; for directing the Respondents to release the Goods along with the Conveyance without payment of tax and penalty. The applicant transported goods from Gandhidham, Kutch to Bhavnagar. E-way bill was generated and invoice was raised. The applicant submitted that the show cause notice has been issued on the assumption that the past transactions are doubtful. Further, conditions of Sub-Section (1) of Section 130 are not fulfilled. The respondent submitted that the matter is one of a large-scale fraud. The respondent further submitted that the inquiry is in progress. The court observed that when the vehicle was intercepted, the driver was able to produce a valid E-way bill and also the invoice, at least, the goods and the conveyance should be ordered to be released subject to the final outcome of the confiscation.
Held that:- The Hon’ble High Court partly allowed the petition and directed the respondent to release the vehicle and the goods after obtaining a bond.