Detained goods under GST may be released on prescribed security, with adjudication required to be completed promptly.

Detained goods under GST may be released pending adjudication if the prescribed security requirement under Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 is complied with, and adjudication should proceed promptly. Relying on an earlier Division Bench approach, the Kerala High Court directed the competent authority to complete adjudication within one week from production of the judgment and permitted immediate release of the goods upon compliance with the rule-based security condition. The ruling emphasizes expeditious determination of detention matters under section 129 of the GST statutes while safeguarding release of goods against proper security.

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Issues: Whether the goods detained under section 129 of the GST statutes were liable to be released pending adjudication and whether the adjudication was to be completed within a stipulated time.

Analysis: The detention was challenged in the context of an identical earlier decision of the Division Bench, which had permitted release of detained goods pending adjudication upon compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 and had directed expeditious completion of adjudication. Following that approach, the Court considered it appropriate to ensure prompt adjudication under section 129 of the GST statutes and to permit release of the goods on compliance with the prescribed security requirement.

Conclusion: The competent authority was directed to complete the adjudication within one week from production of a copy of the judgment, and the detained goods were to be released forthwith if the petitioner complied with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017.

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