Detention Order Quashed Under Section 129(1) GST Act Due to Technical Address Error, Consignment Released

The HC quashed the detention order issued under Section 129(1) of the GST Act due to a technical breach involving delivery to an unregistered address. The petitioner had amended the GST registration post facto to include the delivery address. Relying on precedent, the court held there was no intent to evade tax and ordered release of the consignment and vehicle if not already done. The penalty paid was directed to be credited back to the petitioner's Electronic Cash Register. The writ petition was allowed.

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The Madras High Court, presided by Honourable Mr. Justice C. Saravanan, allowed the Writ Petition challenging the detention order dated 21.05.2025. The petitioner had transported goods invoiced to a registered GST address in Tirunelveli but delivered to a business location in Thoothukudi, which was not initially included in the GST registration. Although the petitioner applied for and obtained amendment of the GST registration post-transportation, the consignment was intercepted, and a notice under Section 129(1) (Form GST MOV-06) was issued, followed by the impugned detention order. Relying on precedent decisions-M/s. Smart Roofing Private Limited vs. The State Tax Officer (INT), Madurai [W.P.(MD) No.5720 of 2022] and Algae Labs Pvt. Ltd. vs. State Tax Officer - 1, Tirunelveli [W.P.(MD) No.4958 of 2022]-the Court held in favor of the petitioner. The Court ordered that the penalty paid be credited back to the petitioner's Electronic Cash Register, stating the petition is allowed and imposing no costs.

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