Plastic Bottle Scrap Seizure Case Closed as Final GST Section 130 Order Was Issued

Genesis Recycling Private Limited Vs Commissioner of State Tax (Kerala High Court)

The petitioner filed a writ petition before the Kerala High Court seeking release and restoration of custody of a consignment of 17,150 kilograms of compressed baled plastic bottle scrap and the commercial vehicle bearing Registration No. RJ 06 GC 2363. The petitioner also sought directions to stop further investigation and coercive action, withdraw the GST MOV-10 Show Cause Notice dated 15.01.2026 and related proceedings, quash the notice and actions connected with the detention of the goods and conveyance, and declare that the detention and proposed confiscation proceedings under Sections 129 and 130 of the CGST Act were illegal and without jurisdiction. The petitioner further sought declarations that the goods and vehicle were not liable to confiscation and that the show cause notice was legally unsustainable.

When the matter came up for consideration, the learned Government Pleader informed the Court that the proceedings initiated against the petitioner under Section 130 of the CGST Act had already been finalized. It was submitted that a final order bearing Order ID No. ZD320526007149L dated 12.05.2026 had been passed, and a copy of the order was produced before the Court for perusal.

In view of the finalization of the confiscation proceedings and the passing of the final order, the Court held that it was open to the petitioner to pursue the remedies available against the final order. Without prejudice to such remedies, the Kerala High Court closed the writ petition.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

This writ petition is submitted by the petitioner seeking the following reliefs.

i. Issue a writ of mandamus or such other appropriate writ, direction, or order commanding the Respondents to forthwith release and restore full custody and possession of the consignment of 17,150 kilograms of compressed baled plastic bottle scrap and the commercial conveyance bearing Registration No. RJ 06 GC 2363 to the Petitioner or its authorized agent/transporter, for completion of the interstate dispatch to the destination in Maharashtra;

ii. Issue a writ of mandamus or such other appropriate writ, direction, or order commanding the Respondents to cease and desist from any further investigation, inquiry, or coercive action against the Petitioner and to withdraw the Show Cause Notice GST MOV-10 dated 15 January 2026 (Reference No. ZD320126010024C) and any related correspondence, detention orders, or notices issued or proposed to be issued in relation to the detention of the goods and conveyance;

iii. Issue a writ of certiorari or such other appropriate writ, direction, or order quashing and setting aside the Show Cause Notice GST MOV-10 dated 15 January 2026 and all proceedings and actions taken by the Respondents in relation to the detention of the goods and conveyance, including detention orders under Section 129 and any proposed action under Section 130 of the CGST Act;

iv. Declare that the detention of the goods and conveyance is wholly illegal, arbitrary, and without jurisdictional foundation under any provision of the CGST Act or any other law;

v. Declare that the goods (17,150 kg compressed baled plastic bottle scrap) and conveyance (Registration No. RJ 06 GC 2363) are not liable to confiscation under Section 130 of the CGST Act, as no contravention of any statutory provision has been established and no intent to evade tax on the part of the Petitioner is evident;

vi. Declare that the Show Cause Notice GST MOV-10 dated 15 January 2026 is legally baseless, procedurally defective, and devoid of jurisdictional foundation;

vii. grant such other and incidental reliefs as this Hon’ble Court may deem fit, just, and necessary in the peculiar facts and circumstances of this case; and

viii. allow this Writ Petition with costs to the Petitioner.

2. Today when the matter came up for consideration, the learned Government Pleader upon instructions submitted that now the proceedings initiated against the petitioner under Section 130 of the CGST Act, has been finalized and an order has been passed on 12.05.2026. The copy of the order bearing order ID No. ZD320526007149L dated 12.05.2026 was also made available before this Court for perusal.

In such circumstances it is for the petitioner to invoke the remedies against the final order passed and without prejudice to the same this writ petition is closed.