The court held that a detained vehicle used for transporting goods in contravention of GST laws can be released to the driver/lessee upon payment of the penalty specified under Section 129(1)(b) of the CGST Act, 2017.

Prayer : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, calling for the records relating to the impugned order passed by the Respondent in Form GST MOV-09 bearing Order No. HSRRS-1/1006/2026-27 dated 17.04.2026 and quash the same insofar as it relates to the erroneous computation of penalty and consequently direct the Respondent to release the conveyance and goods on payment of the penalty as determined in accordance with law.

ORDER

Mrs.K.Vasanthamala, the learned Government Advocate, takes notice on behalf of the Respondent.

2. This Writ Petition is being disposed of at the stage of admission itself with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.

3. The Petitioner is the Driver of the vehicle bearing Regn.No.TN-29-DZ-1616 involved in transportation of polished granite slabs from Jagadevi, Krishnagiri, Tamilnadu to Gooty in Andhra Pradesh. The consignment was intercepted on 05.04.2026 by the Roving Squad, Office of the Respondent, wherein it was found that the invoice was raised by one M/s Anantha Enterprises, Attur, Salem in the name of M/s.Sri Venkateswara Granites & Marbles, Gooty, Andhra Pradesh.

4. The learned counsel for the Petitioner submits that he is neither the owner of the consignment nor the owner of the lorry in which the goods were transported and is willing to pay the fine.

5. The learned counsel for the Petitioner further submits that the Petitioner has taken the vehicle on lease and is responsible for its operation and he is willing to deposit 50% of the value of the goods or 200% of the tax payable on such goods which ever is higher as per Section 129(1)(b). Relevant portion of Section 129 of the Central Goods and Services Tax Act, 2017 is extracted here under:

“129. Detention, seizure and release of goods and conveyance 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 detention or seizure, shall be released.

(a) on payment of penalty equal to two hundred percent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two percent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty;

(b) on payment of penalty equal to fifty percent of the value of the goods or two hundred per cent of the tax payable on such goods whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty;

(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed”.

6. In this regard, the learned counsel for the Petitioner has also made the following endorsement in the Court bundle:

‘I am the counsel for the petitioner. Under instructions, I hereby undertake that the petitioner will pay a sum of Rs.1,00,000/- as penalty under 1st proviso to Sec.129(b) of the GST Act (or) 50% of value of goods whichever is lesser as per the Act.’

7. Since the Petitioner is intereste