Khatu Enterprises Vs State of Gujarat (Gujarat High Court)
Gujarat High Court held that detention order is liable to be quashed and set aside since department failed to issue notice as required under section 129(3) of the GST Act. Accordingly, writ is disposed of.
Facts- The petitioner is a sole proprietorship firm engaged in trading of brass scrap. The petitioner is registered under the provisions of Goods and Service Tax Act, 2017. The petitioner sold 3,042 Kgs of Brass Crop to M/s Gatral Metals situated in Jamnagar, Gujarat on FOB basis on 30.4.2025 and the goods were transported by the petitioner from New Delhi along with Tax Invoices, E-way Bill and Delivery / Consignment note.
On 3.5.2025, while the goods were in transit to Jamnagar, the respondent No.2 intercepted the said vehicle at Bavla Highway on the ground that the genuineness of the goods and/ or tendered documents requires further verification. Thereafter on 6.5.2025, physical verification report in Form GST MOV-04 was issued by the respondent stating that no excess quantity or other goods related material difference was found during physical verification, however, on the basis of the system based analysis, it was found that the invoice and e-way bill generated by the parties whose goods were in transit (including petitioner) is found to be wither, bogus/ fake and suspicious. On 7.5.2025, without providing opportunity to the petitioner to explain the discrepancy highlighted in Form GST MOV-04, an order of detention of consignment u/s. 129(1) of the Gujarat GST Act was passed in Form GST MOV-06 proposing further investigation on the ground that the tax invoice and E-way bill generated by the parties whose goods were detained were found to be either bogus/ fake/ suspicious. Being aggrieved by the impugned order, the petitioner has preferred this petition.
