Section 129 of the CGST Act, 2017 --- Goods in Transit –- The appellant department challenged the interim order dated 25th November, 2021. The respondents have challenged an order passed by the Appellate Authority dated 15th September, 2021 confirming the order of the adjudicating authority dated 6th May, 2021. The goods have been detained along with the vehicle since March, 2021 since the appellant could not avail the alternative remedy provided under Section 112 of the Act before the Appellate Tribunal. The learned Single Bench imposed a condition of deposition of 20% of the disputed tax amount for release of the vehicle and the goods. The appellant department is aggrieved by such order on the ground that if the vehicle and the goods are released, the interest of the revenue will not be protected. The court observed that unless and until the exercise of discretion is absolutely unreasonable and arbitrary, as an Appellate Court, seldom such directions are interfered with. As long as the respondents do not admit any of the tax liability, the question of invoking Clause (a) of Section 112 (8) would not arise. The interest of revenue stands sufficiently safeguarded. Further, the balance amount of the disputed tax should be secured by the respondent by executing a bond in the form as approved by the appellant.

Held that:- The Hon’ble High Court directed the respondents to execute a bond in the form as approved by the appellant authorities securing the interest of the revenue and also a letter of undertaking to produce the vehicle-in-question as and when required. The respondents shall cooperate in the proceedings. The vehicle along with the goods shall be released within three days along with the specific condition that the goods shall be sent back to the State of Uttar Pradesh to the consignor.