Section 129/130 of the CGST Act, 2017 – Goods in Transit – The petitioner challenged SCN for detetion of goods and vehicles. The counsel for the petitioner submitted that by invoking the provisions of Section 130, the respondent acted without jurisdiction. Vide Finance Act, 2021, Sections 129 and 130 were amended to the effect that ‘Non-Obstente’ Clause was removed from Section 130, while retaining the Non-Obstente clause in Section 129 of the Act and that the said amendment came into effect from 01.02.2022 and as such from the said date, Section 129 of the Act shall have over riding effect on Section 130 of the Act. The respondent counsel submitted that the deletion of Non-Obstente clause from Section 130 of the Act does not take away power of the respondent authorities to invoke the said provision of law and the provisions of Sections 129 and 130 are independent. The court observed that the issues raised are required to be re-examined after filing counter by the respondents.

Held that:- The Hon’ble High Court directed that there shall be stay of further proceedings pursuant to the impugned SCN dated 16.04.2022 and the subject goods and conveyance shall be released subject to the petitioner paying 25% of the amount proposed by the respondent authorities.