Prolonged transit detention without Section 129(3) order justified release of goods and vehicle on security and indemnity bond.

Goods and vehicle detained in transit for absence of an e-way bill may be released under Section 129(1) of the U.P. GST Act on compliance with statutory conditions. Where no order under Section 129(3) was passed for more than twelve days and the notice under that provision was issued only after the writ petition, the prolonged detention was treated as unjustified. Interim protection was therefore granted by directing release on furnishing security other than cash or bank guarantee for the proposed tax and penalty amount, together with an indemnity bond.

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Issues: Whether goods and vehicle detained in transit for non-accompaniment of e-way bill were liable to be released on furnishing security and indemnity bond when no order under Section 129(3) was passed for a considerable period.

Analysis: Section 129(1) of the U.P. Goods and Service Tax Act, 2017 contemplates release of detained or seized goods on compliance with the conditions specified in the statute. The detention continued without an order under Section 129(3) for more than twelve days, and the notice under Section 129(3) was issued only after the writ petition was filed. In these circumstances, the prolonged detention was held to be unjustified, and interim protection was warranted by directing release of the goods and vehicle on furnishing security other than cash or bank guarantee for the amount equivalent to the proposed tax and penalty, together with an indemnity bond.

Conclusion: The goods and vehicle were directed to be released in favour of the petitioner on furnishing security and indemnity bond in accordance with Section 129(1)(a) of the Act.

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