Section 129 of the CGST Act, 2017 —– Goods in Transit —- The petitioner challenged the order demanding tax and penalty dated 04.11.2022 under Section 129(3) of the Act. The petitioner submitted that the truck had remained in non-motorable condition and thus, the goods which were to be delivered on or before 17.10.2022 could not be delivered in time and on 19.10.2022 at the time of inspection, because of the expiration of the e-Way bill number, the truck was seized. The court observed that the detention is on the ground that the e-Way bill expired during the transit and the same cannot be the ground for detaining and seizure of M.S. Billet along with the vehicle truck. The court placed reliance upon the decision in Govind Tobacco Manufacturing Co. vs. State of U.P., wherein it was held that as there is expiry of e-Way bill on transit, the seizure of said vehicle and the goods is not permissible under the law. There is no fraudulent intention for this to happen.

Held that:- The Hon’ble High Court set aside the impugned order dated 04.11.2022 and set aside the order of detention dated 19.10.2022 as well as the notice issued under section 129(3) of the Act dated 19.10.2022.