2025 (5) TMI 560 - HC - GST

Detention of goods - imposition of penalty u/s 129(1)(b) of the CGST Act - no e-way bill was presented at the time of detention - HELD THAT - Learned ACSC could not show any provision or circular other than relied upon by counsel for the petitioner - matter requires consideration. Learned counsel for the respondents may file counter affidavit within six weeks from today. Rejoinder affidavit if any may be filed within one week thereafter - In the meantime goods in question shall be released forthwith in case the petitioner complies with the provision of Section 129 (1) (a) of the CGST Act. It is further provided that with regard to the balance amount the petitioner shall furnish security other than the cash or bank guarantee to the satisfaction of the authority concerned. List again in July 2025.

Summary

The Allahabad High Court, before Hon'ble Justice Piyush Agrawal, heard a petition challenging orders dated 08.04.2025 and 09.03.2025 relating to detention of goods and imposition of penalty under Section 129(1)(b) of the CGST Act for non-production of an e-way bill. The petitioner's goods, in transit from Delhi to Telangana, were intercepted at Agra; though the petitioner's GST registration had been suspended on 22.02.2025, it was later restored. The petitioner contended that both seller and purchaser were duly registered at the relevant times and that goods were accompanied by a tax invoice, arguing that mere absence of an e-way bill does not establish an intention to evade tax. Relying on Clause 6 of the Circular dated 31.12.2018 regarding "owner of goods" under Section 129(1), the petitioner asserted applicability of Section 129(1)(a) since the petitioner had come forward to claim the goods.The Court noted the absence of contrary provisions cited by the respondents and directed the filing of counter and rejoinder affidavits. Meanwhile, the Court ordered release of the goods upon compliance with Section 129(1)(a) of the CGST Act and furnishing of security other than cash or bank guarantee for the balance amount. The matter was adjourned for further hearing in July 2025.