GST E-waybill: High Court slams GST Department for detaining Goods for 4 Months Without Seizure Order

Sunshine Enterprises, a Kanpur-based firm, shipped 480 cartons of pan masala worth Rs. 36.24 lakh to a buyer in Howrah. Although the truck carried a valid invoice and e-way bill, it was intercepted on December 18, 2025. Instead of following standard procedures, the authorities sat on the goods for over four months without passing a formal seizure order.

To make matters worse, the officials insisted that the female proprietor appear in person for questioning, refusing to let her advocate represent her. They justified the delay by citing a report alleging the firm was a “bogus” entity, despite the paperwork clearly identifying the petitioner as the owner.

Issue Before Court: Can GST authorities detain goods indefinitely without a formal order, and can they legally force a taxpayer to appear in person when the law allows for legal representation?

HC Decided: The High Court pulled up the department for its “serious lapses”. It ruled that a four-month delay without a formal order is inexcusable, especially for perishable items like pan masala. The Court reminded officials that GST laws mandate prompt action, not indefinite detention.

On the issue of personal appearance, the Court was equally firm. Under Section 116 of the CGST Act, taxpayers have a right to be represented by an authorised person, such as a lawyer. Forcing a personal appearance when a representative is available is a violation of these rights. The Court ordered the department to hold a proper hearing immediately, allow the advocate to present the case, and release the vehicle and goods as soon as the penalty is settled.

To Read Full Judgment, Download PDF Given Below