Interim release of detained GST goods permitted on compliance with statutory bond conditions pending expedited adjudication

Goods detained under Section 129 of the CGST and Kerala SGST Acts were directed to be released forthwith upon compliance with Rule 140(1) of the Kerala GST Rules. The Kerala HC treated the matter as covered by an earlier Division Bench direction in an identical case and, on that basis, required the competent authority to complete adjudication within one week from production of the judgment copy. The operative effect was that interim release was permitted subject to satisfaction of the statutory release condition, while adjudication was left to proceed within a short stipulated time.

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Issues: Whether the goods detained under Section 129 of the Central Goods and Services Tax Act, 2017 and Section 129 of the Kerala State Goods and Services Tax Act, 2017 were liable to be released pending adjudication on compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017.

Analysis: The matter was treated as covered by an earlier Division Bench direction in an identical case, under which expeditious completion of adjudication was ordered and release of detained goods was permitted subject to compliance with Rule 140(1). Following that course, the competent authority was directed to complete the adjudication within one week from production of a copy of the judgment. It was also directed that upon compliance with Rule 140(1), the detained goods shall be released forthwith.

Conclusion: The goods were directed to be released on compliance with Rule 140(1), and adjudication was directed to be completed within the stipulated time.

Ratio Decidendi: Where goods are detained under Section 129, interim release may be directed pending adjudication if the statutory conditions for release are satisfied.

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