Facts of the Case

The petitioner, M/s PVM Traders, a Kerala-based dealer in palm nuts, was transporting goods from Kerala to Nagpur when the consignment was intercepted at Gooty, Andhra Pradesh, on 20.08.2025. The vehicle was detained under Form GST MOV-01/MOV-06 on the ground that the commodity did not match the accompanying documents, and proceedings were thereafter initiated under Section 130 of the CGST Act via Form GST MOV-10, proposing confiscation, without the department first completing the detention proceedings already commenced under Section 129. Aggrieved, the petitioner filed a writ petition before the Andhra Pradesh High Court seeking release of the perishable goods and the vehicle.

Issues Involved

  1. Whether the department, having initiated action under Section 129 of the CGST Act, could switch to confiscation proceedings under Section 130 without completing or formally closing the Section 129 proceedings.
  2. Whether the confiscation notice issued only to the driver, without proper service on the owner, denied the petitioner an opportunity of hearing.

Petitioner's Arguments

  • Having initiated detention under Section 129, the department could not invoke Section 130 confiscation without first completing the Section 129 process, relying on a Division Bench ruling of the same High Court.
  • The Section 130 notice was served only on the driver and not on the petitioner-owner, denying a real opportunity of hearing.
  • The goods being perishable palm nuts, continued detention caused severe hardship and it would serve neither the petitioner nor the revenue to keep the goods withheld.

Respondent's Arguments

  • Sections 129 and 130 of the CGST Act are independent, separate provisions and proceedings can be initiated under both separately, relying on another Division Bench ruling of the same Court.
  • The petitioner was now in possession of the confiscation notice and should be permitted to file objections rather than have the notice quashed outright.

Court Order / Findings

  • The Court held that once detention is initiated under Section 129, the proper officer retains discretion either to continue under Section 129 or to close it and proceed under Section 130, but cannot keep both running simultaneously without an election.
  • The ratio is that the detaining officer must elect between continuing under Section 129 or switching to Section 130 by formally closing the former, since payment of the Section 129 penalty concludes proceedings under Section 129(5).
  • The writ petition was disposed of directing the department to intimate its choice to the petitioner within two days, with the petitioner's representation to be considered within three days thereafter.

Important Clarification

  • Section 129 and Section 130 of the CGST Act, though both dealing with goods in transit, cannot be invoked simultaneously against the same consignment without the department first deciding which track to pursue.
  • Perishable goods detained in transit warrant expeditious disposal by the authorities regardless of which provision is ultimately invoked.
  • Notice of confiscation proceedings must be meaningfully served on the owner/consignor, not merely the driver, to satisfy natural justice.

Sections Involved

  • Section 129, CGST Act, 2017 — detention and seizure of goods in transit and release on payment of penalty.
  • Section 130, CGST Act, 2017 — confiscation of goods and conveyances and levy of penalty.
  • Form GST MOV-01 to MOV-10 — prescribed procedural forms for interception, detention, and confiscation of goods in transit.

Decision – In Favour of

The decision is disposed of with directions, without a clean win for either side — the petitioner did not get outright release, but secured a time-bound departmental election between Section 129 and Section 130 proceedings and an expedited hearing.

Case Details

Court: High Court of Andhra Pradesh, Amaravati — Case No.: Writ Petition No. 26670/2025 — Coram: Justice R. Raghunandan Rao and Justice T.C.D. Sekhar — Date of Order: 24 September 2025.

Link to Download the Order

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