Section 129/130 of the CGST Act, 2017 — Goods in Transit –— The applicant’s goods and conveyance were intercepted on 08.04.2022 and served with a SCN in Form GST MOV-10 dated 11.04.2022 for confiscation of goods under Section-130 of the Act. The cousel for applicant submitted that in accordance with Subsection (3) of Section-129, the Proper Officer is obliged to issue a notice within seven days of detention or seizure specifying the penalty payable and thereafter, pass an order within a period of seven days from the date of service of said notice for payment of penalty under clause (a) or clause (b) of Sub-section (1). He placed reliance on decision of the Karnataka High Court in the case of M.S. Meghdoot Logistics Vs. Commercial Tax Officer decided on 21.12.2020. The court observed that they are exploring the possibility of ordering provisional release of the goods on the condition that the applicant shall deposit the entire amount towards penalty. There is some confusion as regards the exact amount due and payable towards penalty.

Held that:- The Hon’ble High Court issued notice to the respondents returnable on 20.04.2022.