GST: Kerala HC rules Detention for Undeclared Goods u/s 129 Valid, Orders Release on Penalty Payment [Read Order]
Kerala HC upheld the detention of excess goods under Section 129 of the CGST Act and directed the release of the vehicle upon payment of tax and penalty.
![GST: Kerala HC rules Detention for Undeclared Goods u/s 129 Valid, Orders Release on Penalty Payment [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Kerala-HC-taxscan.jpg "GST: Kerala HC rules Detention for Undeclared Goods u/s 129 Valid, Orders Release on Penalty Payment [Read Order]")
In a recent decision, the Kerala High Court held that detention of goods under Section 129 of the CGST Act is valid when goods transported are found in excess of those covered by the invoice and e-way bill. The Court directed that such goods and the vehicle be released upon payment of the applicable tax and penalty, as per the law. Sobha Enterprises, a registered taxpayer engaged in...
In a recent decision, the Kerala High Court held that detention of goods under Section 129 of the CGST Act is valid when goods transported are found in excess of those covered by the invoice and e-way bill. The Court directed that such goods and the vehicle be released upon payment of the applicable tax and penalty, as per the law.
Sobha Enterprises, a registered taxpayer engaged in the arecanut trade, filed a writ petition after their vehicle was intercepted by the State GST Enforcement Squad at Walayar on 03.04.2025. The vehicle that carried arecanuts was allegedly transporting 4000 kg in excess of what was declared in the invoice and e-way bill.
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Following this, the department recorded the driver's statement and issued an order for physical verification. The petitioner requested the release of the vehicle upon payment of tax and penalty on the excess quantity but the request was denied, and the goods and vehicle were detained under Section 129 of the GST Act.
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The department argued that a full physical verification was necessary and insisted on the petitioner’s personal appearance to complete the process. The verification was pending due to the petitioner’s absence.
Before the HC, the petitioner claimed that they had already appeared in person and submitted a reply seeking release of the goods, expressing readiness to comply with tax and penalty obligations.
The single-judge bench comprising Justice Bechu Kurian Thomas observed that the provisions of Section 129 had been validly invoked in the case and that the legal framework allows for the release of detained goods upon fulfillment of statutory conditions.
The court found no irregularity in the department's decision to detain the vehicle but pointed out that once the petitioner appears and tax and penalty are paid, the vehicle and goods must be released without delay.
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The court ruled that no further judicial directions were necessary beyond clarifying that physical verification should be completed on the day the petitioner appears before the respondent. The writ petition was accordingly disposed of.
To Read the full text of the Order CLICK HERE
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