Detained goods under GST to be released on compliance with Rule 140(1), with adjudication completed within a week.

Detained goods under Section 129 of the CGST Act and the KGST Act were to be released on compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017, as the matter was treated as covered by an earlier Division Bench ruling. The Court directed expeditious completion of adjudication and required the competent authority to complete proceedings under Section 129 within one week from production of a copy of the judgment. Release of the goods was made conditional on compliance with the prescribed security or surety requirements, while adjudication was to continue within the stipulated time.

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Issues: Whether the goods detained under Section 129 of the Central Goods and Services Tax Act and the Kerala State Goods and Services Tax Act were liable to be released pending adjudication, and whether the adjudication was to be completed within a stipulated time.

Analysis: The matter was treated as covered by an earlier Division Bench decision, which directed expeditious completion of adjudication while permitting release of the detained goods on compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. In that light, the competent authority was required to complete the adjudication under Section 129 within one week from production of a copy of the judgment, and release of the goods was made conditional on compliance with Rule 140(1).

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

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