Detained GST goods may be released on Rule 140 compliance, with adjudication to be completed promptly.

Goods detained under the GST enactments may be released on compliance with Rule 140(1) of the Kerala GST Rules, 2017, and the competent authority is to complete adjudication under Section 129 promptly. Relying on an earlier Division Bench approach, the Kerala HC directed expeditious adjudication and ordered that the detained goods be released forthwith once the prescribed compliance was made. The direction was confined to securing timely adjudication and release pending that process, without altering the substantive tax position.

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Issues: Whether goods detained under the GST enactments were liable to be released pending adjudication and whether the adjudication was required to be completed within a short time.

Analysis: The order noted that an identical matter had already been disposed of by a Division Bench, which had directed expeditious completion of adjudication and permitted release of detained goods upon compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. Following that approach, the Court directed the competent authority to complete the adjudication under Section 129 of the relevant GST statutes within one week from production of a copy of the order. It further directed that, on compliance with Rule 140(1), the detained goods be released forthwith.

Conclusion: The petitioner obtained a direction for expedited adjudication and release of the detained goods on compliance with the prescribed rule.

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