Section 129 of the CGST Act, 2017 — Goods in Transit —–The petitioner challenged the order dated 19.03.2018 passed under Section 129 (3), whereby the goods have released in favour of the petitioner subject to deposit of Rs. 10,46,780/- as tax and a further penalty of Rs. 10,46,780/- as well as the Appellate Order dated 06.11.2018, whereby the appeal preferred by the petitioner was dismissed. The goods were detailed on the ground that the E-way bill system, as introduced by the Central Government was replaced by the State E-way bills, which had been suspended by the Central Government w.e.f. 02.02.2018. Thus, the State was of the view that once the Central Government had suspended its E-way bill, the requirement of the State E-way bill stood revived automatically. The court observed that GST Council had postponed the enforcement of the requirement of E-way bill till 31st March, 2018. The whole basis that the petitioner was not carrying the E-way bill, looses significance as the petitioner were not liable to be taxed and further the requirement of E-way bill was recommended to be not enforced till 31st March, 2018.

Held that:- The Hon’ble High Court set aside the demand order with directions to refund the 10% amount deposited by the petitioner while preferring the appeal, in accordance with law, within a period of two months. The bank guarantee given by the petitioner shall also be released to him.