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TMI Blog2020 (12) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... 23397 of 2020. By the said judgment, which considered the legality of the detention of a consignment of goods at Muthanga, Wynad, during the course of interstate transportation, this Court had, taking note of the fact that the consignment was not covered by a valid delivery chalan that was one of the prescribed documents for transportation of exempted goods, found that the detention was justified. It was, however, held that the petitioner would only have to pay the lessor of an amount equal to 5% of the value of the goods or Rs. 25,000/-, in terms of Section 129 (1)(b) of the CGST Act for obtaining a release of the goods and the vehicle. 2. In the Review Petition, it is the case of the State that, once it was found that the detention was j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention that was the subject matter of the Writ Petition aforementioned more so when the transportation involved was of exempted goods. In this connection, it would be worthwhile to consider the provisions of Section 129 (1)(b) of the CGST, which reads as follows: "129. Detention, seizure and release of goods and conveyances in transit (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the power of detention is exercised by virtue of the provisions of Section 20 of the IGST Act read with Section 129 of the CGST Act. There is no reference to the provisions of the SGST Act in Section 20 of the IGST Act, save for the mention in the 4th proviso to Section 20. In my view, the 4th proviso would be attracted only in a situation where, in respect of an interstate transaction, there is a liability to pay tax under the IGST Act that includes components of tax under the CGST and SGST Acts or where a penalty based on tax liability is attracted under both of the said enactments. In the case of an interstate transportation of exempted goods, the phrase used in Section 129 of the CGST Act that is mutatis mutandis made applicable to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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