GST Goods Detention | Release Under Sec. 129(1)(a) If Owner

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  • Last Updated on 19 January, 2026

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GST Goods Detention Section 129(1)(a)

Judiciary and Counsel Details

  • Shekhar B. Saraf & Manjive Shukla, JJ.
  • Surangama Sharma & Jagriti Vashisht for the Petitioner.

Facts of the Case

The petitioner challenged the action of the respondent authorities relating to the detention of its goods and vehicle, along with the consequential order passed under Section 129(3) of the CGST Act. The petitioner contended that it was the owner of the goods and, therefore, the goods were liable to be released in accordance with Section 129(1)(a) of the CGST Act. However, the authorities proceeded to compute tax and penalty under section 129(1)(b). It was further argued that the issue was squarely covered by earlier decisions of the Allahabad High Court, particularly in Halder Enterprises v. State of U.P., wherein it was held that in cases where the owner of goods comes forward, release must be governed by Section 129(1)(a).

High Court Held

The High Court, upon examining the record and the precedents relied upon, held that there was no justification to take a view different from that already settled in Halder Enterprises. It was observed that since the petitioner was the owner of the goods, the release ought to have been governed by Section 129(1)(a) of the CGST Act. Accordingly, the impugned order passed under Section 129(1)(b) was quashed and set aside, and the respondent authorities were directed to re-compute and release the goods in terms of Section 129(1)(a) on the basis of the valuation declared in the invoice, within the stipulated time.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied