Section 129 of the CGST Act, 2017 – Goods in Transit -–- The intra court appeal filed by the writ petitioner against the order dated 6th February, 2023 passed by the learned Single Bench refusing to grant any interim order. The short issue involved in the case is whether 200% penalty could have been imposed in terms of section 129 of the Act. The vehicle was intercepted on 9th May, 2022 and detained along with the goods on the ground that the e-way bill had expired on 8th May, 2022. The court observed that there was no intention on the part of the appellant to evade payment of tax. If an e-way bill had expired, the transporter had 08 hour time to seek for extension of the time stipulated in the e-way bill. Therefore, there was delay by about 01 hour and 35 minutes. Thus, penalty should not have been imposed in this case.

Held that:- The Hon’ble High Court set aside the orders passed by the appellate authority dated 26th September, 2022 as well as the original authority dated 15th May, 2022.