Conditional release of detained GST goods follows statutory compliance, with adjudication required to be completed promptly.

Detained GST goods are to be released once the prescribed statutory conditions are complied with, and the adjudicating authority must complete proceedings without undue delay. The Kerala High Court directed release of the detained goods on compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017, and required the competent authority to complete adjudication under Section 129 of the CGST Act within one week of production of the judgment copy. The operative effect is conditional release of the goods coupled with expeditious completion of adjudication.

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Issues: Whether detained goods were liable to be released on the petitioner complying with the statutory requirement, and whether the adjudication under the detention provisions had to be completed expeditiously.

Analysis: The petitioner sought release of goods detained under the GST detention provisions. The Court noted the earlier Division Bench order in similar circumstances and directed the competent authority to complete adjudication under Section 129 of the CGST Act within one week from production of the judgment copy. It further held that upon compliance with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017, the detained goods were to be released without delay.

Conclusion: The detained goods were directed to be released on compliance with Rule 140(1), and the authority was required to complete adjudication within the time fixed.

Final Conclusion: The writ petition was disposed of in favour of the petitioner by securing prompt adjudication and conditional release of the detained goods.

Ratio Decidendi: Where detained GST goods are covered by the statutory release mechanism, compliance with the prescribed conditions entitles the taxpayer to release and the adjudicating authority must act without undue delay.

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