Section 129 of the CGST Act, 2017 – Goods in Transit –-–-The petitioner prayed for quashing of GST MOV-06 dated 07.02.2022. The petitioner's goods were intercepted by the tax authority and they found that the conveyance did not have a valid E-Way Bill as the same have already expired on 16.01.2022. Therefore, the vehicle with goods was detained and a detention order has been issued in this regard on 18.01.2022 under Section 129(3) of the Act. The counsel for the petitioner submitted that due to COVID-19 situation, the transportation could not take place on or before 16.01.2022. Therefore, two days after it was taken and hence it cannot be construed as if the transportation had taken place without documentation. Therefore, the very basis for issuing the show cause notice as well as the detention order for adjudication is bad in law, he contended. The court observed that the vehicle was intercepted in view of the lack of documents i.e. E-Way Bill which was admittedly not valid on the date of transportation ie., on 18.01.2022. Therefore, a show cause notice was issued and hence it should be faced by the petitioner by giving a reply and to appear before the Revenue. This Court is not inclined to or impressed with the grounds raised by the petitioner. The counsel, however, submitted that pending adjudication proceedings, the petitioner is ready and willing to give a bank guarantee for the penalty amount proposed, against which the goods can be released.

Held that:- The Hon’ble High Court directed that it is open to the petitioner to give bank guarantee for the proposed penalty and if such bank guarantee is given by the petitioner, after accepting the same, the respondent Revenue can release the goods.