Section 129 of the CGST Act, 2017 —– Goods in Transit — The petitioner sought directions for quashing the Order of Detention under Section 129(1); for  quashing the impugned FORM MOV-10 dated 06.05.2022; to direct the Respondent No. 3 to release the Goods worth Rs.1,08,60,957/- of the Petitioner alongwith vehicle, without payment of penalty. The counsel for the petitioner submitted that the authority has relied upon some transactions which have taken place between the petitioner and with regard to some other party in the years 2017-18, 2018-19, 2019-20, 2020-21 for which, no notices had ever been issued by the authority. In the present case, no contravention of any provision of the Act and Rules for good in transit were found as recorded by the authority while issuing MOV-06 on 26.04.2022. The petitioner is ready and willing to deposit an amount of Rs. 17 lacs which has been tentatively determined by the authority as penalty amount. The court observed that when the conveyance was intercepted along with the goods, the driver of the conveyance did produce necessary documents which are required under the Act as well as the Rules like invoice, E-way bill, Lorry receipts. The respondent alleged that input tax credit was wrongly availed or utilised by reason of fraud by the petitioner. The court placed its reliance upon decision of the Division Bench of this Court in case of Majid Bilalbhai Akbani Proprietor of M/S Imran Impex versus State of Gujarat.

Held that:- The Hon’ble High Court directed that on depositing an the amount of Rs. 17 lacs and furnishing the bond of Rs. 65 lacs with the respondent-Authority, by the petitioner, the respondent-authority shall release the vehicle and goods in question. The inquiry with respect to Form GST MOV-10 shall proceed further in accordance with law.