Challenging GST Act Section 130: Appellate Authority's Order Questioned for Exceeding Original Confiscation Scope and Improper Statutory Invocation

GHC addressed a petition challenging a GST Act Section 130 order. Petitioners argued the Appellate Authority exceeded original confiscation order's scope and improperly invoked Section 130 instead of Section 129, as goods were no longer in transit. The HC issued notice returnable on 7th May 2025, permitting direct email service.

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The Gujarat High Court, in an oral order by Justice Bhargav D. Karia, addressed a petition challenging the order passed under Section 130 of the Gujarat Goods and Services Tax Act, 2017 ("the GST Act") in Form GST MOV-11. The petitioners contended that the Appellate Authority recorded reasons beyond those stated in the original confiscation order, which solely cited the non-production of Invoice and E-Way Bill at the time of detention on 30th April 2022. The petitioners argued that the issuance of Forms GST MOV-1 and MOV-2 in June 2022, two months after detention, was improper, and that Section 130 was wrongly invoked since the only reason given relates to non-production of documents, which falls under Section 129, applicable only when goods are in transit. Moreover, they submitted that Section 129 could not apply as the goods were no longer in transit when Form GST MOV-1 was issued. The Court issued notice returnable on 7th May 2025, permitting direct service by email.

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