Section 129 of the CGST Act, 2017 – Goods in Transit –- The intra Court appeal is directed against the order dated 25th July, 2022, whereby, the learned Single Bench has declined to pass any interim order and directed affidavit-in-opposition to be filed by the respondents. The appellant had challenged the impugned order of the appellate authority confirming the order of the adjudicating authority imposing the penalty for transporting the goods without any e-way bill. The appellant contended that the transaction being an export transaction, no tax is payable and secondly, there was no wilful intention on the part of the appellants not to generate any e-way bill. The court observed that if the transaction is an export transaction, then no tax is leviable. Consequently, the conduct of the appellants could have been examined both by the adjudicating authority as well as by the appellate authority while imposing penalty under Section 129 of the Act, whereas such exercise has not been done. Therefore, one more opportunity can be granted to the appellants to show their bona fides.

Held that:- The Hon’ble High Court set aside the appeal and the order passed by the appellate authority and remanded the matter to the appellate authority. The appeal shall stand restored in the file of the appellate authority and the appellants shall appear before the appellate authority and produce all documents to establish their case that no tax is leviable and there was no willful intention on their part to evade payment of tax so as to attract penalty, after affording an opportunity of personal hearing. The appellate authority shall pass a reasoned order on merits and in accordance with law preferably within a period of 12 weeks.