Section 129 of the CGST Act, 2017—Goods in Transit –––- The petitioner challenged Notice dated 24.09.2022 issued under Section 129(3) of the Act, whereby the petitioner has been called upon to show cause as to why the penalty should not be imposed on the petitioner. It is alleged that there is a discrepancy in the E-way bill generated. The court observed that invocation under Section 129(3) for imposing penalty appears to be misplaced as there is no supply within the meaning of Section 7 of the Act. Be that as it may, the matter would require a detailed consideration and considering the fact that the 2nd respondent has also issued the impugned show cause notice.

Held that:- The Hon’ble High Court directed the petitioner to participate in the aforesaid proceedings and to pay a sum of Rs.2,50,000/- to the credit of the respondents and furnish a bond for the remaining amount to the satisfaction of the respondents. On such compliance, the respondents shall release the excavator.