Detention of goods under GST may be appealed, with release conditioned on deposit of the disputed penalty amount.

An order detaining goods under the CGST framework was treated as amenable to appeal under Section 107 because the provision permits appeals against decisions or orders of an adjudicating authority. Where the dispute related only to penalty, with tax already paid, the Court required deposit of the entire disputed penalty as a condition for filing and entertaining the appeal. On such deposit and filing within limitation, the appellate authority was to consider the appeal on merits and the detained goods were to be released, while the appellant could raise all available contentions before that authority.

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Issues: (i) Whether an order of detention of goods under the CGST regime was appealable under the statutory appellate mechanism under Section 107. (ii) Whether the appellant was entitled to release of the detained goods upon deposit of the disputed penalty amount and filing of the appeal.

Issue (i): Whether an order of detention of goods under the CGST regime was appealable under the statutory appellate mechanism under Section 107.

Analysis: Section 107 permits an appeal against any decision or order passed by an adjudicating authority. The expression "adjudicating authority" is defined broadly, and an order of detention falls within the class of orders that can be questioned in appeal. The statutory scheme also requires payment of the admitted amount and a specified percentage of the disputed amount before the appeal can be entertained.

Conclusion: The detention order was held to be appealable under Section 107.

Issue (ii): Whether the appellant was entitled to release of the detained goods upon deposit of the disputed penalty amount and filing of the appeal.

Analysis: The dispute related to penalty alone, as tax had already been paid. The Court directed deposit of the entire penalty amount and filing of proof with the appeal. Upon such deposit and filing of the appeal within limitation, the appellate authority was required to entertain the appeal on merits, and the goods were to be released. The appellant was also left free to urge all available contentions before the appellate authority.

Conclusion: The appellant was directed to deposit the full penalty amount, and on doing so and filing the appeal, the goods were ordered to be released and the appeal to be heard on merits.

Final Conclusion: The writ appeal was disposed of with directions that preserved the statutory appellate remedy while securing provisional release of the detained goods on deposit of the penalty amount.

Ratio Decidendi: An order of detention of goods under the CGST framework is amenable to appeal under Section 107, and where release of the goods is sought, the Court may require deposit of the disputed penalty amount as a condition for entertaining the appeal and securing release.

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