Goods & vehicle accompanied with proper e-way bill & invoice can’t be detained for past bogus transactions: HC

Case Details: Kapil Hukmichand Kothari v. Union of India - [2022] 140 taxmann.com 467 (Gujarat)

Judiciary and Counsel Details

• • A.J. Desai & Bhargav D. Karia, JJ.
  • Tushar Hemani, Sr. Adv. & Ms Vaibhavi K. Parikh for the Petitioner. 
  • Trupesh Kathiriya, AGP for the Respondent.

Facts of the Case

The petitioner was engaged in the business of trading of copper and copper scrap. The department detained goods and vehicle of the petitioner on the ground that it had entered into numerous bogus transactions in recent past and violated provisions of Central Goods and Services Tax Act (CGST), 2017. It filed writ petition against the detention of goods.

High Court Held

The Honorable High Court observed that when vehicle was intercepted, the driver of the vehicle produced valid E-way Bill and invoice. The authority can detain goods and/or conveyance during transit only if there would be contravention of Section 129 of CGST Act. However, in the present case, no contravention of any provision of the Act and Rules for goods in transit were found. Therefore, the Court directed that goods and vehicles to be provisionally released and the department may conduct enquiry in accordance with law.