Provisional release of detained goods is available on compliance with Rule 140(1), while Section 129 adjudication must proceed promptly.

Detained goods under Section 129 of the CGST Act and the Kerala SGST Act may be released pending adjudication where the conditions for provisional release under Rule 140(1) of the Kerala GST Rules are satisfied. The earlier Division Bench approach was followed, requiring the competent authority to complete adjudication under Section 129 within a stipulated time while granting immediate release of the goods on compliance with Rule 140(1). The operative effect is that provisional release depends on statutory compliance, and detention cannot continue once the prescribed conditions are met.

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Issues: Whether 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 relief was sought in a situation already covered by an earlier Division Bench decision. Following that approach, the competent authority was directed to complete adjudication under Section 129 within a stipulated time. The Court also directed that upon compliance with Rule 140(1), the detained goods should be released forthwith.

Conclusion: The petitioner was entitled to release of the detained goods on compliance with Rule 140(1), while adjudication under Section 129 was to be completed expeditiously.

Ratio Decidendi: Detained goods under Section 129 may be released pending adjudication when the statutory conditions for provisional release under the applicable rules are complied with, and adjudication must then proceed within a short time.

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