The Kerala High Court has held that no specific orders are required for release of goods under Section 129 CGST Act upon statutory compliance.
The bench of Justice Bechu Kurian Thomas has observed that the department has 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 the High Court are not necessary.
The Petitioner is in the business of purchase and supply of arecanut. While the petitioner was allegedly transporting arecanut in a vehicle, it was intercepted and a statement of the driver was taken.
Subsequently, an order for physical verification of the goods was issued. In the meantime, the petitioner requested to release the vehicle after accepting the tax and penalty calculated on the value in excess of what is covered by the E-way bill.
Though physical verification was carried out on 09.04.2025, the officer insisted the petitioner to appear for carrying out detailed inspection and issued an order of detention under Section 129(1) of the CGST Act.
The department submitted that an order of detention has been issued and a detailed verification of the goods is required to be done for which purpose the petitioner was asked to be present in person. However, since he has not yet appeared, the verification could not be carried out in its entirety.
The 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.
The court held that 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. On compliance of the orders, the department shall release the goods and vehicle, in accordance with law. The physical verification of the entire goods shall be carried out on the day the petitioner appears before the department.
Case Details
Case Title: Sobha Enterprises Versus Asst. Enforcement Officer
Case No.: WP(C) NO. 15725 OF 2025
Date: 11/04/2025
Counsel For Petitioner: S.Anil Kumar
Counsel For Respondent: Jasmin M.M.
