Section 129 of the CGST Act, 2017 — Goods in Transit —- The petitioner sought directions to the first respondent to accept the bank guarantee equivalent to the disputed penalty amount in accordance with the provisions of Section 129(1)(c) and provisionally release the goods along with the conveyance. After inspection of goods, the petitioner was issued with the Order of Detention in Form GST MOV-06 dated 21.03.2022 along with the Penalty Notice under Section 129(3). The petitioner filed Petitions and the same was disposed of by this Court with a direction to the petitioner herein to raise all the points on merits before the adjudicating authority. Thereafter, the petitioner filed his objections on 04.04.2022 regarding detention of goods. The respondent vide order dated 07.04.2022 confirmed the levy of penalty. The petitioner made a representation dated 11.04.2022 requested the respondents to release the goods in the vehicle, stating that they would furnish the bank guarantee equivalent to the disputed penalty amount, but till date no order has been passed on the representation. The respondent counsel submitted that if the petitioner annex the bank guarantee along with the copy of the representation, immediately after the receipt of the bank guarantee of the petitioner, the detained goods will be released in favour of the petitioner within a period of one week.

Held that:- The Hon’ble High Court permitted the petitioner to annex the bank guarantee within a period of one week along with the application/representation. If such bank guarantee and application is made, the respondents are directed to release the detained goods to the petitioner within a period of one week.