Section 129 of the CGST Act, 2017 – Goods in Transit –- This intra-Court appeal is directed against the orders dated 20th April, 2022 and 22nd June, 2022, by which the learned Single Bench extended the time for filing affidavit-in-opposition by the respondent and simultaneously declined to grant any interim order to the appellant. The appellants had issued a single invoice and had raised multiple e-way bills and loaded the goods into three trucks. One of the three trucks had already reached the consignee. The other two trucks could not reach the destination within the validity of the e-way bills. The appellants had explained that there is no mens rea on their part but the Adjudicating Authority had imposed full tax and penalty. The court observed that the First Appellate Authority is required to record the reasons in writing as to how and in what manner mens rea was established. Since this is lacking in the order passed by the Appellate Authority, the matter should be remanded back to the Appellate Authority for fresh consideration to decide this short issue as to whether there is any mens rea on the part of the appellants to evade payment of duty.

Held that:- The Hon’ble High Court set aside the orders and remanded the matter to the Appellate Authority for fresh consideration. The Appellant is not required to keep the bank guarantee alive. Instead of bank guarantee, the appellants to furnish a bond to the satisfaction of the concerned authority for the entire amount of tax and penalty.