Detention of Goods Under GST Section 129: Security Deposit Requirement Upheld with Procedural Safeguards for Tax Compliance

HC ruled on GST goods detention under Section 129, requiring petitioner to deposit security equivalent to tax liability. Goods were released, with enhanced security deposit mandated within one month. Proceedings are summary in nature, protecting revenue interests, and do not prejudge final tax assessment. Writ petition disposed of, with security deposit subject to subsequent adjudication.

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Issues:
The judgment deals with the deposit of security u/s 129 of the Central Goods and Services Tax Act, 2017 for the release of goods detained during transit.

Summary:

The petitioner, as the owner of the goods, undertakes to pay the security equivalent to the amount payable u/s 129 of the CGST Act, as determined by the appellate authority. The provisions of Section 129 of the Act outline the process for detention, seizure, and release of goods and conveyances in transit. The detained goods have already been released, and the enhanced security must be deposited within one month for further assessment of tax liability and penalty.

The security deposit remains subject to the outcome of the adjudication process, and the impugned proceedings conclude after the deposit as per Section 129(5) of the GST Act. The findings in the impugned orders do not impact the assessment proceedings under Section 73 and 74 of the GST Act. Proceedings under Section 129 are summary in nature, aimed at safeguarding revenue interests, and the deposits are contingent upon the final adjudication of tax liability.

In conclusion, the writ petition is disposed of in light of the above considerations.

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