Notice Mandatory while detaining Goods not accompanied with E-Way Bill: Gujarat High Court [Read Order]

While granting interim relief to a dealer from Tamilnadu, a two-judge bench of the Gujarat High Court has held that notice under section 129 of the Goods and Services Tax Act is mandatory condition to detain the goods which are not accompanied with E-Way bill during the consignment.

While transporting the consignment of betel nuts from Vellore, State of Tamil Nadu, to Delhi, the goods were intercepted in Gujarat and later detained on the ground that E-Way Bill was not produced when demanded.

The issue before the bench comprising Justice J B Pardiwala and Justice A C Rao was relating to the interpretation of Sections 129 and 130 of the GST Act.

While granting interim relief to release the goods, the bench recalled its order passed on 8^th March wherein it was observed that that the show-cause notice under section 130 of the CGST Act has been issued without complying with the requirements of section 129 of the CGST Act. It was also observed that the goods in question are perishable in nature.

“The vehicle bearing registration no.KA-14B-7985, as well as the goods, i.e. betel nuts, detained/seized under the purported exercise of powers under Sections 129 and 130 of the GST Act, shall be released immediately upon the writ-applicant depositing the amount of Rs.3,57,000=00 with the concerned department. The writ-applicant shall file an undertaking before this Court within a week from today to the effect that in case the writ-applicant ultimately does not succeed in the petition, he shall duly cooperate in the further proceedings,” the bench said while posting a matter to 24^th July.