PVM Traders Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Summary : The Andhra Pradesh High Court addressed a writ petition filed by PVM Traders, a business dealing in palm nuts, challenging the detention and confiscation proceedings initiated by the State tax authorities under the Central Goods and Services Tax (CGST) Act. The petitioner transported palm nuts from Kerala to Nagpur, Maharashtra, on 19 August 2025. The vehicle carrying the goods was intercepted by the third respondent, a tax officer, at Gooty on 20 August 2025. Following the interception, the officer detained the goods by issuing Form MOV-01 to the vehicle driver and subsequently issued MOV-02, MOV-04, and MOV-06 notices. Under the proceedings of MOV-06 dated 23 August 2025, the palm nuts were detained on the grounds that the commodity description did not match the documents accompanying the goods.
Later, proceedings were initiated under Section 130 of the CGST Act through issuance of Form MOV-10, proposing confiscation. Aggrieved by this, the petitioner approached the High Court, arguing that the authorities could not initiate proceedings under Section 130 without completing those under Section 129, which deals with detention and release of goods upon payment of penalty. The petitioner further claimed that although action was initially initiated under Section 129, the tax authorities proceeded under Section 130 without giving an opportunity for penalty payment and without completing the prior process. The petitioner relied on the rulings of the Karnataka High Court and a Division Bench of the Andhra Pradesh High Court in M/s. Arhaan Ferrous and Non-Ferrous Solutions Pvt. Ltd. vs Deputy Assistant Commissioner (W.P. No. 15481 of 2023, dated 03 August 2023), asserting that Section 130 proceedings cannot commence before completing the Section 129 process.
