GST Update

 Desk of CA. Praveen Sharma – 988 Series (CAPS) 

CALCUTTA HIGH COURT IN THE CASE OF Goodwill Traders

The affidavit of service filed today is taken on record.

The matter was originally filed before the Principal Bench when the Court was not sitting. It has now been transferred to this Court and is taken up for consideration.

The petitioner submits that it is a duly registered supplier and had entered into a contract with M/s. ATA Bricks for supply of goods. The goods were being transported from Assam to Bihar through vehicle no. WB65E4213. During transit, the vehicle was intercepted at Gosala More, Jalpaiguri by officers of the Bureau of Investigation, despite the presence of valid documents such as e-way bill and invoices.

The petitioner contends that copies of the documents were not provided to them, though they are the owner of the vehicle, and were instead given only to the driver. The interception was based on suspicion of concealment of actual consignor/consignee details.

Due to business exigencies and to avoid prolonged detention, the petitioner paid the amount under section 129(1)(a) and secured release of goods and vehicle. Subsequently, an order under section 129(3) dated 15.12.2025 was passed, which is challenged on various grounds including lack of jurisdiction.

The State GST authority submitted that the petitioner has an alternative remedy by way of appeal under section 107 of the Act.

The petitioner argued that since jurisdictional issues are involved, the writ petition is maintainable before this Court.

Upon hearing both sides, the Court observed that the Act provides a multi-tier adjudication mechanism and it would be appropriate for the petitioner to first approach the appellate authority.

Accordingly, the writ petition is disposed of with liberty to the petitioner to file an appeal under section 107 within three weeks. Considering that the penalty has already been paid and the matter has been pending since 04.02.2026, the appellate authority is directed to decide the appeal on merits, including jurisdictional issues, within eight weeks from the date of filing.

With these directions, the writ petition stands disposed of.

LINK;CA. Praveen Sharma on Linkedin

Regards
CAPS