Facts of the Case

The petitioner's vehicle bearing registration No. KA16 D 1211, along with goods being transported, was detained on 14.04.2023 by the Superintendent (P&I), Central GST, Mahabubnagar (Respondent No. 1), on the ground that the vehicle was carrying goods without proper documentation — specifically, that no e-way bill had been produced or generated at the time of interception. A detention order in Form GST MOV-06 was passed on 20.04.2023 under Section 129 of the CGST Act, 2017. The petitioner challenged the detention order by way of writ petition, contending that Respondent No. 1 was not the 'proper officer' competent to order such detention under the applicable circular.

Issues Involved

  1. Whether the officer who ordered detention of the goods and vehicle under Section 129(1) of the CGST Act was the 'proper officer' authorised to do so.
  2. Whether the writ petition against the detention order was maintainable at that stage, before completion of the statutory notice-and-hearing process under Section 129(3).

Petitioner's Arguments

  • Under a circular dated 09.07.2017 issued by the Central Board of Excise and Customs, only a Deputy or Assistant Commissioner of Central Tax is the 'proper officer' for detention under sub-section (1) of Section 129, and Respondent No. 1 lacked such authority.

Respondent's Arguments

  • The writ petition was premature since, after detention, a notice of hearing was required to be issued under Section 129(3) within seven days specifying the penalty payable, with an order to follow within a further seven days after service of the notice — and such a hearing had already been fixed for 01.05.2023.
  • On the proper-officer question, the impugned action was carried out under sub-section (1) of Section 129, and it would not be correct to say only an Assistant/Deputy Commissioner could act as proper officer in that context.
  • If the petitioner remained aggrieved after the Section 129(3) order, it would have the liberty to file a statutory appeal under Section 107 of the CGST Act.

Court Order / Findings

  • The Court held the writ petition was premature, since the statutory notice-and-hearing process under Section 129(3) was already underway and a hearing date had been fixed.
  • The petitioner was directed to participate in that hearing and, if needed, avail the statutory appellate remedy under Section 107 of the CGST Act after an order is passed.
  • Subject to these observations, the writ petition was dismissed, without costs.

Important Clarification

The Court did not decide the underlying legal question of who qualifies as the 'proper officer' for detention under Section 129(1) — it left that, along with all other contentions, to be raised (if necessary) in a statutory appeal after the detention proceedings under Section 129(3) run their course. This is a common pattern in GST detention litigation: courts frequently decline to intervene mid-proceeding when a structured notice-and-hearing mechanism is already in motion.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — Section 129 (detention, seizure and release of goods and conveyances in transit), Section 107 (appeals)
  • Form GST MOV-06 (detention order format under GST rules)

Decision – In Favour of

Decided against the petitioner on the threshold — the writ petition was dismissed as premature, without costs, with liberty to participate in the pending Section 129(3) hearing and to appeal thereafter if aggrieved.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: Writ Petition No. 12784 of 2023
  • Coram: Chief Justice Ujjal Bhuyan and Justice N. Tukaramji
  • Date of Order: 28 April 2023

Link to Download the Order

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