Kerala High Court Directs Expeditious Disposal of Confiscation Proceedings for Vehicles Carrying Kerosene without E-Way Bills

Case Details:
Case Title: Peter Santhosh Rodrigues v. State Tax Officer (Intelligence)
Court: High Court of Kerala at Ernakulam
Petition Number: WP(C) No. 40 of 2025
Judgment Date: 24 January 2025
Category of Dispute: Detention and Confiscation of Conveyance and Goods
Relevant Sections: Section 129 and Section 130 of CGST/SGST Act, 2017
Judge: Justice Bechu Kurian Thomas

Facts of the Case:

[Para 1, 2]

• The petitioner, a transport contractor, owned two tanker lorries (KA-11C-2468 and KA-41B-6559) that were intercepted by tax officers on 30th and 31st December 2024 respectively while transporting industrial kerosene.

• The authorities detained the vehicles under Section 129 of the CGST/SGST Act due to the complete absence of e-way bills or tax invoices accompanying the goods.

• Based on suspicion of tax evasion, proceedings under Section 130 were also initiated.

• The petitioner sought provisional release of the vehicles, but the department had already issued confiscation notices in Form GST MOV-10.

Question(s) in Consideration:

[Para 4, 5, 6]

• Whether detention and confiscation of vehicles under Section 129 and 130 was justified in the absence of transport documents?

• Whether the proceedings under Section 130 should be completed in a time-bound manner considering the perishable nature of the goods (kerosene)?

• Whether fair hearing was denied due to delay in receipt of MOV-10 notices?

Observations of the Court:

[Para 4, 5, 6]

• The Court noted that industrial kerosene was transported without any valid e-way bill or invoice, justifying the initiation of proceedings under Section 130.

• It held that while the statute provides for payment of fine in lieu of confiscation, the department must conclude adjudication swiftly if such payment is not made.

• The Court accepted the petitioner’s contention that notices were received late and fixed specific dates (29.01.2025 and 30.01.2025) for personal appearance.

• It emphasized that perishable goods like kerosene should not be kept detained indefinitely.

Judgment of the Court:

[Para 6]

• The Court directed Respondents 1 and 2 to conclude proceedings under Section 130 within ten days from the date of appearance of the petitioner.

• The petitioner was ordered to appear before the authorities on 29th and 30th January 2025 respectively for each vehicle.

• The writ petition was disposed of with directions for time-bound adjudication.

Between Fine Lines:

• Vehicles carrying industrial kerosene were detained due to lack of e-way bills.

• GST authorities proceeded under Section 130 suspecting evasion.

• Kerala High Court stressed early conclusion of confiscation proceedings.

• Perishable nature of goods like kerosene was key in granting relief.

• Petitioner given fixed dates for hearing to ensure natural justice.

Summary of Referred Cases:

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