Facts of the Case

M/s Phaneendra Traders filed a writ petition challenging the detention, on 25.02.2021, of its goods and vehicle (bearing registration RJ 27 GD 4737) while in transit from Andhra Pradesh to Maharashtra, despite the consignment being accompanied by a tax invoice and an electronically generated e-way bill. The petitioner sought a declaration that the detaining officer's action was arbitrary and without jurisdiction, that Section 129 of the GST Act had no application to the minor documentation omissions cited in the detention order (Form GST MOV-06), and a direction to release the goods and vehicle.

Issues Involved

  1. Whether the detention of goods for alleged minor documentation discrepancies was legally sustainable.
  2. Whether the writ petition survived after the goods were released pursuant to an interim order.

Petitioner's Arguments

  • The vehicle was accompanied by a valid tax invoice and e-way bill generated on the GST portal; the detention was arbitrary, illegal, and without jurisdiction.
  • Section 129 of the GST Act (detention/seizure) had no application to minor omissions/mistakes in documentation.
  • The demand for tax and penalty as a condition for release was contrary to Section 126 of the GST Act and Articles 14 and 265 of the Constitution.

Respondent's Arguments

  • No detailed counter is recorded on record; the matter was resolved through compliance with the Court's interim order rather than contested adjudication.

Court Order / Findings

  • Counsel for the petitioner informed the Court that, pursuant to the interim order dated 15.03.2021, the petitioner had paid Rs. 29,880 towards IGST, following which the goods and vehicle were released by the detaining officer.
  • As the grievance stood redressed and no further dispute survived, the Court dismissed the writ petition as infructuous.
  • No order as to costs was made, and pending miscellaneous applications were closed.

Important Clarification

The Court never ruled on whether the detention was legally justified or whether Section 129/126 of the GST Act was correctly invoked — the case became moot because the petitioner paid the disputed IGST amount to secure release of its goods, under an earlier interim arrangement. Businesses facing similar e-way bill detentions should note that paying under protest to release goods, as happened here, can end the litigation without resolving the underlying legal question of whether the detention was valid.

Sections Involved

  • Central Goods and Services Tax Act, 2017 / Telangana Goods and Services Tax Act, 2017 — Section 129 (detention/seizure of goods in transit), Section 126 (general disciplines related to penalty)
  • Form GST MOV-06 (detention order format)

Decision – In Favour of

Disposed of as infructuous — neither party obtained a ruling on the legality of the detention; the petitioner had already paid IGST and recovered its goods before the case was disposed of.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: Writ Petition No. 6276 of 2021
  • Coram: Hon'ble Sri Justice P. Sam Koshy and Hon'ble Sri Justice Laxmi Narayana Alishetty
  • Date of Order: 28.08.2023

Link to Download the Order

Click here to view/download the full order

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