Court Rules in Favor of SLV Elite Spaces LLP, Citing Improper Detention Due to Vehicle Breakdown
In a significant ruling, the Andhra Pradesh High Court has quashed the detention order of goods and a vehicle belonging to SLV Elite Spaces LLP under the Goods and Services Tax (GST) Act, 2017. The court found the detention, which was based solely on the expiry of an E-way bill, to be improper, especially in the absence of any tax evasion by the petitioner.
The case arose when the vehicle carrying TMT boxes, accompanied by all requisite documents, was detained due to the expiration of its E-way bill. The vehicle, which was en route from Vizianagaram to Suryaraopet, Vijayawada, broke down at Bhavanipuram, Vijayawada, leading to a delay. On inspection by the authorities on April 14, 2026, a day after the E-way bill had expired, the vehicle and goods were detained under Section 129 of the GST Act, 2017.
Presiding over the case, Justices Sri Ninala Jayasurya and Sri T.C.D. Sekhar noted that the detention was hyper-technical, given that the vehicle had already reached Vijayawada and was only 8 kilometers away from its final destination. The court remarked that the sole reason for detention was the expired E-way bill, with no evidence of tax evasion presented.
The court had previously issued an interim order on April 15, 2026, directing the release of the vehicle and goods, which the authorities complied with. In its final judgment, the court highlighted the absence of tax evasion and deemed further proceedings against the petitioner unnecessary. The writ petition was allowed, and all further proceedings against SLV Elite Spaces LLP were ordered to be dropped.
This ruling underscores the judiciary's commitment to ensuring that technicalities do not overshadow the substantive justice in matters involving tax compliance and transportation of goods.
Bottom line:-
GST Law - Detention of goods and vehicle due to expiry of E-way bill - Detention under Section 129 of GST Act, 2017 deemed improper, as there was no tax evasion and the breakdown of the vehicle was the reason for delay.
Statutory provision(s): Goods and Services Tax Act, 2017 Section 129
SLV Elite Spaces LLP v. State of A.P., (Andhra Pradesh)(DB) : Law Finder Doc id # 2948872
