Facts of the Case

This writ petition under Article 226 of the Constitution of India was filed by M/s Arora Metal and Alloys before the High Court of Punjab and Haryana at Chandigarh, challenging the order dated 28.10.2023 passed under Section 68 of the Central Goods and Services Tax Act, 2017, in Form GST MOV-2, and the connected notice dated 28.10.2023 issued in Form GST MOV-01 under Section 68 read with Rule 138B and Rule 138C of the CGST Rules, 2017, concerning detention of goods and the vehicle transporting them. By the time the matter came up for hearing, a subsequent order dated 31.10.2023 had already been complied with and the goods and vehicle stood released.

Issues Involved

  1. Whether it is necessary to continue a writ petition challenging a detention order and e-way bill verification notice under Section 68 of the CGST Act once the goods and vehicle have already been released pursuant to compliance.

Petitioner's Arguments

  • Counsel for the petitioner informed the Court that the order dated 31.10.2023 had been duly complied with and that the goods and vehicle had been released.
  • In view of the release, the petitioner's counsel elected not to press the writ petition any further.

Respondent's Arguments

  • No independent counter-arguments are recorded, as the writ petition was not pressed once the release of goods and vehicle was placed on record.
  • The State's counsel is recorded only as appearing; no substantive opposition was necessary given the concession by the petitioner.

Court Order/Findings

  • The Division Bench recorded that the order dated 31.10.2023 had been complied with and the goods and vehicle released.
  • Keeping this in view, and since counsel for the petitioner did not press the writ petition, the Court ordered accordingly and disposed of the matter without adjudicating the underlying challenge to the detention order.
  • No liberty or further direction was expressly recorded in the order.

Important Clarification

  • Once goods and a vehicle detained under Section 68 of the CGST Act are released pursuant to compliance with a subsequent order, a pending writ challenge to the detention order/MOV notices is commonly not pressed and disposed of without a decision on merits.
  • Such disposal leaves the legality of the original detention order under Section 68 read with Rules 138B and 138C unexamined — it should not be read as an adjudication either way on the propriety of the detention.
  • Transporters and consignees facing e-way bill related detentions should track compliance with any release order closely, since release can render the writ academic even before the substantive question is argued.

Sections Involved

  • Section 68, CGST Act, 2017 – empowers inspection of goods in movement and requires the person in charge to carry prescribed documents.
  • Rule 138B, CGST Rules, 2017 – provides for verification of the e-way bill and documents by the proper officer.
  • Rule 138C, CGST Rules, 2017 – prescribes the procedure for inspection and reporting in Part B where a conveyance is intercepted.

Decision – In Favour of

Disposed of as not pressed, in part in favour of the Assessee — the underlying detention issue stood already resolved by the release of the goods and vehicle, but the Court did not render any independent finding on the legality of the detention order.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Punjab and Haryana at Chandigarh
  • Case No.: CWP-24549-2023
  • CNR: Not available on record
  • Coram: Hon'ble Mr. Justice G.S. Sandhawalia and Hon'ble Ms. Justice Lapita Banerji
  • Decision Date: 05.12.2023
  • Disposal Nature: Petition not pressed/disposed of - goods and vehicle already released

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