Section 129/130 of the CGST Act, 2017— Goods in Transit -– The petitioner challenged the Order of Detention U/s. 129(1).The detention order reflects the seller and dealer being suspicious but the order is silent on the alleged discrepancies and there is no discrepancy on record in the e-way bills and invoices. The petitioner submitted that the authority has arbitrarily imposed fine of Rs. 54,93,605/- despite knowing fully well that in view of Section 130(2), the fine should not exceed the market value of goods less the tax chargeable thereon. The court observed that order of detention dated 22.07.2021 as well as the show cause notice in form GST MOV-10 issued on 24.07.2021. The authority found that it has a shop of 90 sq.ft. and there is no stock available although it had purchased goods worth Rs. 4.50 Crores (rounded off), therefore proceedings were initiated under Section 130. The Kerala Authority had also cancelled the registration of the present petitioner on the ground that it has allegedly involved in the tax evasion.

Held that:- The Hon’ble High Court dismissed the petition and directed the petitioner to move to the concerned authority and take recourse to the alternative remedy. Once he approaches, let the authority concerned consider it in accordance with law without being influenced by this disposal.