https://www.taxtmi.com/caselaws?id=764919 The Delhi HC held that Section 129 of the CGST Act, 2017 does not override Section 126's penalty provisions despite containing a non-obstante clause. The court ruled that Section 129 primarily concerns release of detained goods and conveyances, not penalty levy, and cannot supersede Section 126's principles of moderation and reasonableness in penalty imposition. The HC emphasized that authorities must distinguish between trivial breaches and serious contraventions, noting that confiscation should only apply where there is clear intent to evade tax, not for mere procedural lapses like incomplete e-way bills when other valid documents exist. The court agreed with Gujarat HC's position that issuing confiscation notices under Section 130 without proper grounds would be unjustified and render Section 129 ineffective. The petition was disposed of, establishing that penalty levy must be guided by Section 126's principles of moderation and reasonableness. en-us Fri, 17 Jan 2025 00:00:00 +0530 Fri, 15 May 2026 14:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764919 The Delhi HC held that Section 129 of the CGST Act, 2017 does not override Section 126's penalty provisions despite containing a non-obstante clause. The court ruled that Section 129 primarily concerns release of detained goods and conveyances, not penalty levy, and cannot supersede Section 126's principles of moderation and reasonableness in penalty imposition. The HC emphasized that authorities must distinguish between trivial breaches and serious contraventions, noting that confiscation should only apply where there is clear intent to evade tax, not for mere procedural lapses like incomplete e-way bills when other valid documents exist. The court agreed with Gujarat HC's position that issuing confiscation notices under Section 130 without proper grounds would be unjustified and render Section 129 ineffective. The petition was disposed of, establishing that penalty levy must be guided by Section 126's principles of moderation and reasonableness. Case-Laws GST Fri, 17 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764919