Section 129 of the CGST Act, 2017— Goods in Transit  –- The petitioner challenged the order dated 26th July, 2019 of the Appellate Authority, whereby the order of penalty dated 12th July, 2018 has been confirmed. The Petitioner contended that during validity period of E.Way bill, the vehicle had reached ITC Limited warehouse but due to temporary shortage of space, it was advised not to unload the consignment. For the safe custody of the consignment, the impugned consignment was taken back to their premises which is only about 15 Kms away from the warehouse and upon availability of space at the warehouse, while vehicle was in transit from their facility to the warehouse, it was intercepted and detained. The Petitioner also annexed GPS Report for the period 28th June, 2018 till 5th July, 2018 in support of its case that the vehicle was standing at their premises. The court observed that neither the State Tax Officer nor Appellate Authority has examined the plea raised by the petitioner based on GPS tracking report of the vehicle. The impugned orders therefore have been passed without proper application of mind and without dealing with the contention raised by the petitioner. It suffers from violation of principles of natural justice.

Held that:- The Hon’ble High Court set aside both the orders passed by the State Tax Officer dated 12th July, 2018 and the appellate order dated 26th July, 2018 and remanded the matter to the State Tax Officer to consider the plea raised by the petitioner in its reply. The Bank Guarantee furnished by the petitioner if not encashed, be also returned to the petitioner.