Section 129 of the CGST Act, 2017—Good in Transit —-The petitioner challenged the SCN dated 29.04.2022 and order dated 14.05.2022 imposing penalty under Section 129(1)(b) and the appellate order dated 30.06.2022. The court observed that the selling dealer was non-existent at the place where his firm is said to have been registered. On physical verification of the premises, it was found that no business transaction was being done from that place and the GST registration was suspended on 04.05.2022. The selling dealer till date has not responded to the notice of the taxing authorities nor has come forward to state that goods were sent by him through the e-way bill alleged to have been generated from the portal from the address mentioned therein. Once, it is found that selling dealer was bogus firm, the goods carrying the e-way bill generated by such firm is of no benefit to the petitioners as the same has been used for transiting the goods from non bona fide dealer from undisclosed place.

Held that:- The Hon’ble High Court found that no interference is required in the orders passed by respondents and dismissed the petition.