Detention under GST law to be adjudicated within a week, with release of goods linked to statutory compliance.

The Kerala High Court directed the competent authority to complete adjudication under Section 129 of the CGST Act and the Kerala SGST Act within one week. It further provided that the detained goods would be released on the petitioner's compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. The operative effect was to expedite the detention proceedings and link release of the goods to the prescribed statutory compliance.

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Issues: Whether goods detained under section 129 could be released pending adjudication, and whether the competent authority should be directed to complete the adjudication within a time-bound period.

Analysis: The detention arose under section 129 of the Central Goods and Services Tax Act and the Kerala State Goods and Services Tax Act. The dispute was governed by the earlier Division Bench direction permitting release of detained goods pending adjudication on compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017. Following that approach, the Court directed expeditious completion of the adjudication and linked release of the goods to compliance with the prescribed rule.

Conclusion: The petitioner was entitled to release of the detained goods on compliance with Rule 140(1), and the competent authority was directed to complete adjudication within one week.

Ratio Decidendi: Detained goods under the GST regime may be released pending adjudication where the prescribed conditions for provisional release are complied with, and the adjudicating authority may be directed to complete the proceedings expeditiously.

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