Section 129 of the CGST Act, 2017— Goods in Transit – The petitioner was issued show cause notice for imposition of penalty, redemption fine and confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act, which is not permissible in law. He drew attention of the court to the provisions of sections 129 and 130 of the Act to point out the procedure which is required to be followed by the respondent authorities in case where any goods are in transit in contravention of the provision of the Act or the rules made there under. It was submitted that it is only if there is no compliance of the order passed under section 129 of the Act, that the provisions of section 130 of the IGST Act can be resorted to. The Respondent submitted that the goods in question were not accompanied by an Eway bill during the course of transit and therefore, the respondents are fully justified in passing the detention order under section 129(1) of the CGST Act.

Held that:- The Hon’ble High Court by way of interim relief, directed the respondents to release the goods detained / seized under sections 129 and 130 of the Act. However, the petitioner shall file an undertaking before this Court within a week from today to the effect that in case the petitioner, ultimately, does not succeed in the petition, he shall duly cooperate in the further proceedings. — Synergy Fertichem Pvt. Ltd. Vs. State of Gujarat [2019] 10 TAXLOK.COM 012 (Gujarat)