Section 129 of the CGST Act, 2017 — Goods in Transit –- The Petitioner challenged the detention order. The issue as to whether the authority were justified in imposing tax and penalty on the ground that at the time of interception, the validity period of the E-Way bill stood expired. The court observed that there was delay of only 41 minutes in delivering the consignment. The petitioner submitted that the destination is situated at a hilly terrain and it is obvious that there might be few minutes delay in delivering the consignment. Where a statute provides extension of time to a transporter, the Adjudicating Authority before imposition of tax and penalty ought to have communicated to the transporter about his right to extend the period but the Adjudicating Authority failed to perform and the appellate authority failed to consider.

Held that:- The Hon’ble High Court set aside the order passed by the Adjudicating Authority and affirmed by the Appellate Authority.