Release Of Detained Consignment Under Section 129 – Adjudication Of Ownership Is Not Relevant

The Calcutta High Court has held that adjudication on ownership of goods is of no relevance in a case where the petition was filed for release of detained consignment in terms of Section 129 of the CGST Act, 2017. The Department had disputed ownership, quality and quantity of the subject goods and objected the authenticity and veracity of tax invoices and e-way bills. 

On meaningful and harmonious reading of Section 129, the Court held that the legislative intent was not to create any charge or lien over the goods against the demand. It was observed that if during adjudication of demand it is found that the assessee is not the owner of the goods or the challenge fails, the ultimate demand will stand and will be crystallized.