2025 (4) TMI 738 - HC - GST

Seeking for a direction for release of the goods and the vehicle covered by Ext.P9 after payment of tax and penalty in respect of 4000 kgs. of goods found in excess - HELD THAT - On a perusal of the records produced as well as on an appreciation of the contentions raised it is evident that the respondent had initiated proceedings under Section 129 of the CGST Act. The statutory scheme provides for release of the goods on compliance with the stipulations therein. Specific orders from this Court is not necessary. Petitioner has expressed its willingness to pay the amount of penalty or other sum that may be imposed. In such circumstances there seems to be no serious dispute except that the respondent wants to have a physical verification of the entire goods to identify whether any other proceedings are required to be initiated as contemplated by the statute or otherwise. Thus no orders are required to be issued except to observe that as and when petitioner appears before the respondent the physical verification of the goods shall be carried out without any delay and if any penalty or other demands are made in accordance with Section 129 of the CGST Act and if the petitioner pays the same appropriate orders shall be issued - petition disposed off.

Summary

In the case before the Kerala High Court, the petitioner sought a directive for the release of goods and a vehicle detained due to excess goods not covered by the existing invoice and E-way bill. The petitioner, a taxpayer under the CGST/KGST Act, 2017, was transporting arecanut when the vehicle was intercepted, leading to an order for physical verification and subsequent detention under Section 129(1) of the CGST Act.The petitioner expressed willingness to pay the applicable tax and penalty, while the respondent required a detailed physical verification of the goods. The Court noted that the statutory scheme under Section 129 allows for the release of goods upon compliance with its stipulations, negating the need for specific court orders.The Court directed that upon the petitioner's appearance, the physical verification should proceed without delay. If any penalties or demands are imposed and paid by the petitioner, the respondent must release the goods and vehicle according to the law. The writ petition was thereby disposed of.