Section 130 of the CGST Act, 2017 — Goods in Transit –— The applicant challenged the legality and validity of the proceedings initiated by the respondent in the Form GST MOV – 10. The counsel for the petitioner submitted that even if all the discrepancies, as noted in the Form GST MOV – 10, are accepted as true, still it is not a case wherein Section 130 of the Act could have been invoked. These discrepancies are of such a nature that they can be gone into at the time of final adjudication. Further, his clients are ready and willing to deposit the amount towards tax and an equivalent amount towards penalty. The court observed that the adjudication of this writ application may take some time. If the writ applicants are ready and willing to deposit the amount towards tax and penalty, then they order release of the goods and the conveyance.

Held that:- The Hon’ble High Court issued Notice to the respondents, returnable on 7th April 2022. By way of an interim order, directed that if the applicants deposit the amount towards tax and penalty, then the goods and the conveyance shall be released at the earliest.