Provisional release of detained GST goods may follow compliance with security conditions, with adjudication completed expeditiously.

Goods detained under the GST regime may be provisionally released if the prescribed security requirement under Rule 140(1) is complied with, while adjudication remains pending. The Court followed an earlier Division Bench approach and directed the competent authority to complete adjudication expeditiously. The operative effect was that detention did not continue indefinitely where the statutory security condition for release was satisfied, and release of the goods was linked to compliance with the applicable rule.

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Issues: Whether goods detained under the goods and services tax laws should be released pending adjudication on compliance with the prescribed security requirement.

Analysis: The petition concerned detention of goods under Section 129 of the Central Goods and Services Tax Act and the corresponding State enactment. A prior Division Bench decision on an identical issue had directed early completion of adjudication and permitted release of the detained goods in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. Following that approach, the Court directed the competent authority to complete adjudication within a short time and ordered release of the goods if the prescribed requirement under Rule 140(1) was complied with.

Conclusion: The goods were ordered to be released upon compliance with Rule 140(1), and adjudication was directed to be completed expeditiously.

Ratio Decidendi: Where detained goods are subject to adjudication under the GST regime, provisional release may be directed on compliance with the prescribed security conditions, while ensuring prompt completion of adjudication.

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