GST: Kerala HC rules Detention for Undeclared Goods u/s 129 Valid, Orders Release on Penalty Payment

The Kerala High Court has ruled that the detention of goods under Section 129 of the GST Act for undeclared goods is valid. However, the court also directed the release of the detained goods upon payment of the applicable penalty. This judgment clarifies the powers of GST authorities to detain goods that are not properly declared and outlines the conditions for their release. It emphasizes the importance of accurate documentation and declaration of goods for transportation to avoid detention and penalties. The ruling balances the need for enforcement of GST regulations with the right of taxpayers to have their goods released upon compliance with the penalty provisions.