Section 129/130 of the CGST Act, 2017 — Goods in Transit –— The applicant’s goods and conveyance were intercepted on 08.04.2022 and served with a SCN in Form GST MOV-10 dated 11.04.2022 for confiscation of goods under Section-130 of the Act. The counsel for applicant submitted that in accordance with Subsection (3) of Section-129, the Proper Officer is obliged to issue a notice within seven days of detention or seizure specifying the penalty payable and thereafter, pass an order within a period of seven days from the date of service of said notice for payment of penalty under clause (a) or clause (b) of Sub-section (1). The court observed that the question arises is whether the respondent authority is entitled to seize and detain the goods in transit and the conveyance, more particularly, when it is accompanied by a lawful e-way bill, invoices and without determining and offering the writ applicant opportunity to deposit tax, if any and penalty, the respondent authority were justified to distinctly proceed for confiscation proceedings by issuing notice under Section 130 of the Act. Hence, rule returnable on 23.06.2022. So far as prayer with regards to provisional release as contemplated, the same will have to be looked into in light of the provisions of Section 129 read with sub-clause (6) of section 67 of the Act.

Held that:- The Hon’ble High Court by way of interim order, directed respondent authorities to provisionally release the goods and conveyance subject to the condition that the writ applicant shall deposit the total amount payable, including penalty, within period of one week. Further directed the respondent authority to proceed with hearing of Section 130 proceedings by giving proper opportunity to the writ applicants to furnish their objections along with supporting documents and conclude such proceedings within period of one month. The respondent authority shall not take any coercive steps against the writ applicants.