Section 130 of the CGST Act, 2017—Goods in Transit —The state has filed appeal against the impugned judgment and order dated 04.02.2022 passed by the High Court of Punjab and Haryana, by which the High Court has set aside the order of detention of the goods/vehicle dated 30.08.2021 issued under section 130 of the Act. The court observed that in the SCN, there was a specific allegation with respect to evasion of duty, which was yet to be considered by the appropriate authority but the High Court entertained the petition against the SCN and set aside the same on the ground that there is no allegation that the petitioner has contravened any provision of the Act or the rules framed thereunder much less with an intent to evade payment of tax. Thus, it was premature for the High Court to opine anything on whether there was any evasion of the tax or not. The same was to be considered in an appropriate proceeding for which the notice under Section 130 of the Act was issued. The High Court has materially erred in entertaining the writ petition against the SCN and quashing and setting aside the same. However, the order passed by the High Court releasing the goods in question is not to be interfered with as it is reported that the goods have been released by the appropriate authority.

Held that:- The Hon’ble Supreme Court set aside the impugned judgment and order passed by the High Court to the extent quashing and setting aside the notice dated 14.09.2021, issued under Section 130  and remanded the matter to the appropriate authority, who issued the notice.