Section 129/130 of the CGST Act, 2017 — Goods in Transit  —–The applicant challenged the order dated 7.10.2021 passed by the Appellate Authority, whereby the authority has confirmed the order dated 6.9.2021 passed under Section 129(3) of the Act. It is submitted that while the goods were in transit, the same were intercepted and detained on the ground that part consignment was not covered with any invoice or other document. But immediately thereafter, the driver of the truck produced the remaining documents but the request was declined. Later on these documents were produced alongwith the reply to SCN. The court observed that the documents that were produced by the petitioner though at the stage of the SCN were original tax invoices and no enquiry was made to doubt the genuineness of such tax invoices. Further, no enquiry was conducted by the respondent authorities either from the purchasing dealers or the Assessing Authority to doubt the transaction at the end of the consignee. Because of lack of enquiry and lack of reasonable doubt, the continued seizure and confiscation as also the demand of tax and penalty is based solely on presumptions and conjectures. The detention did not suffer from any illegality, however, the further orders of the seizure etc. are found to be not based on any material or evidence on record.

Held that:- The Hon’ble High Court set aside the impugned orders dated 7.10.2021 and 6.9.2021. The goods as also vehicle may be released forthwith.