Inter-State goods transit requires a valid documentary basis for detention; release ordered pending GST adjudication.

Goods in inter-State transit could not be detained solely for alleged absence of prescribed documents where the GST framework shown did not establish a corresponding requirement for such movement. The Court noted that Rule 138 of the Kerala GST Rules, 2017 addressed documentation for intra-State transport, and detention on that basis alone was unsustainable. At the same time, the statutory adjudication process was preserved, including verification of the construction purpose and scrutiny of invoice defects. The goods were therefore directed to be released on execution of a simple bond without sureties, while the revenue authorities were permitted to proceed with adjudication.

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Issues: Whether goods transported in the course of inter-State movement could be detained solely for alleged absence of prescribed documents under the GST regime, and whether release of the goods could be ordered pending adjudication.

Analysis: The goods were being carried from Tamil Nadu to Kerala for construction of a residential house. The detention was founded on the absence or defect of documents, but the Court noted that Rule 138 of the Kerala Goods and Services Tax Rules, 2017 dealt with documentation for intra-State transport, while no corresponding Central prescription for inter-State movement had been shown. In that situation, detention could not be sustained merely on the ground of non-carrying of the prescribed documents. At the same time, the Court preserved the adjudicatory process and permitted verification of the construction and scrutiny of defects in the invoice.

Conclusion: Detention of the goods on that ground was not justified, and the goods were directed to be released on execution of a simple bond without sureties, while adjudication was allowed to proceed.

Final Conclusion: The petitioner obtained immediate release of the detained goods, but the revenue authorities were left free to continue the statutory proceedings.

Ratio Decidendi: Goods in inter-State transit cannot be detained solely for want of documents unless the governing GST framework has prescribed those documents for such movement.

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