Conditional release of detained GST goods allowed pending adjudication, with swift completion of Section 129 proceedings directed.

Detained goods under the GST detention provisions may be released pending adjudication where the taxpayer complies with Rule 140(1) of the Kerala GST Rules, 2017. The Kerala HC followed an earlier Division Bench ruling in an identical matter and directed expeditious adjudication under Section 129, requiring the competent authority to complete the process within one week from production of the judgment. It further held that, on compliance with Rule 140(1), the detained goods were to be released forthwith, giving the detention remedy a conditional interim release mechanism while adjudication remains pending.

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Issues: Whether the goods detained under Section 129 of the Central Goods and Services Tax Act, 2017 and the Kerala State Goods and Services Tax Act, 2017 should be released pending adjudication, and whether adjudication should be completed within a fixed time.

Analysis: The petition was decided by following an earlier Division Bench decision in an identical matter, under which expeditious completion of adjudication was directed and release of detained goods pending adjudication was permitted in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. Applying that course, the competent authority was directed to complete the adjudication under Section 129 within one week from production of a copy of the judgment. It was also directed that if the petitioner complied with Rule 140(1), the detained goods were to be released forthwith.

Conclusion: The petitioner obtained a direction for prompt adjudication and conditional release of the detained goods.

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