Section 129 of the CGST Act, 2017— Goods in Transit –– The petitioner challenged proceedings dated 02.12.2022, issued under Section 129(3)of the Act on the ground of breakdown of the truck carrying consignment, repair and consequent delay and portal being blocked without access to renew E-way bill. The court relied on the circular dated 31.05.2019 and observed that the expiry of E-way bill does not create any scope for evasion. Absent evasion, there can be no revenue loss. Further, circular states that in such cases penalty upto Rs.5,000/- shall be levied.

Held that:- The Hon’ble High Court set aside the impugned order with a directive that the petitioner shall pay a penalty of Rs.5,000/- as per paragraph 10 of Circular dated 31.05.2019 latest by tomorrow. On payment of penalty, the second respondent shall release the truck forthwith with the consignment.