Facts of the Case

Mohd Waris Mansuri's vehicle, carrying goods from Andhra Pradesh to Maharashtra accompanied by a tax invoice and electronically generated e-way bill, was detained on 25.02.2021 under Form GST MOV-06 by the Deputy State Tax Officer. The petitioner paid Rs. 37,557/- towards tax under protest to secure release, and filed this writ petition seeking a declaration that Section 129 of the CGST Act did not apply to minor documentation omissions, that the demand and collection of tax and penalty was contrary to Section 126 of the CGST Act and Articles 14, 265 and 300A of the Constitution, and seeking a refund of the amount paid along with release of the vehicle. An interim order dated 12.03.2021 had already directed release of the vehicle pending the writ petition.

Issues Involved

  1. Whether Section 129 of the CGST Act could be invoked for minor documentation errors, as contended by the petitioner.
  2. Whether the tax and penalty demanded and collected were contrary to Section 126 of the CGST Act.

Petitioner's Arguments

  • Section 129 of the CGST Act had no application to minor omissions/mistakes in documentation, and the detention, and demand and collection of tax and penalty, was arbitrary, illegal, and violative of Articles 14, 265 and 300A of the Constitution.
  • The amount of Rs. 37,557/- paid under distress should be refunded and the vehicle released.

Respondent's Arguments

  • Not separately elaborated in the order — the matter was resolved on the petitioner's own submission that the case had become infructuous due to the earlier interim order.

Court Order / Findings

  • Counsel for the petitioner submitted that, by virtue of the interim order dated 12.03.2021 (which had already secured release of the vehicle), the order passed by the authorities stood acted upon and nothing further remained to be adjudicated.
  • The Court accordingly disposed of the writ petition without costs, on this basis.

Important Clarification

This is an important gap to flag honestly: despite the petitioner raising a substantive legal question — whether Section 129 of the CGST Act can be invoked for minor documentation lapses, and whether the collection of tax/penalty violated Section 126 and constitutional provisions — the Court never actually ruled on that question. The case was disposed of purely because the interim relief (release of the vehicle) had already made the matter practically moot for the petitioner; the refund claim and the legal interpretation of Section 129 remain undecided by this order.

Sections Involved

  • Central Goods and Services Tax Act, 2017, Sections 126 and 129
  • Constitution of India, Articles 14, 265 and 300A

Decision – In Favour of

Disposed of without a decision on merits — the writ petition was closed on the footing that the interim order had already resolved the practical dispute (vehicle release), leaving the Section 129 legal question and the refund claim unaddressed.

Case Details

  • Court: High Court for the State of Telangana, Hyderabad
  • Case Number: Writ Petition No. 6094 of 2021
  • Coram: Justice P. Sam Koshy and Justice Laxmi Narayana Alishetty
  • Date of Order: 29.08.2023

Link to Download the Order

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