SOBHA ENTERPRISES v. ASST. ENFORCEMENT OFFICER ENFORCEMENT PALAKKAD

Introduction

This judgment reiterates the statutory scheme governing detention and release of goods under Section 129 of the CGST Act. The Kerala High Court held that once proceedings under Section 129 have been initiated, release of the detained goods and vehicle should ordinarily be governed by the statutory mechanism itself. Where the taxpayer is willing to comply with the demand of tax, penalty or other amounts determined under the Act, there is ordinarily no necessity for the High Court to issue separate directions for release.

Background of the Case

The petitioner, Sobha Enterprises, is a registered taxpayer engaged in the business of purchasing and supplying arecanut.