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NEUTRAL CITATION

C/SCA/2646/2026 JUDGMENT DATED: 06/04/2026

0.06295772307348146

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 2646 of 2026

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI

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Approved for Reporting Yes No ✔

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DSP METALLIKS PROPRIETOR YASHWANT FATEHLAL JAIN Versus STATE OF GUJARAT & ANR.

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Appearance:

MS PALAK M DEVPURA(10370) for the Petitioner(s) No. 1 MS NIMISHA PAREKH ASSISTANT GOVERNMENT PLEADER for the Respondent(s) No. 1,2

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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI

Date : 06/04/2026 ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI)

1. Heard learned advocate Ms. Palak Devpura for the petitioner and learned Assistant Government Pleader Ms. Nimisha Parekh for the

respondents.

2. Rule returnable forthwith. Learned Assistant Government Pleader Ms. Nimisha Parekh waives service of notice of rule on behalf of the

respondents.

3. Having regard to the controversy involved in this petition, with the consent of the learned advocates for the respective parties, the matter is

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NEUTRAL CITATION

C/SCA/2646/2026 JUDGMENT DATED: 06/04/2026

0.06295772307348146

taken up for final hearing.

4. By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed to quash and set aside the Order-in-Original dated 12.11.2025 passed under Section 129 (3) of the Central Goods and Services Tax, Act, 2017 (hereinafter referred to as the “the Act”) in Form

GST DRC-07.

5. The brief facts leading to filing of the present writ petition are that the petitioner is a proprietorship concern and is registered under the State of Maharashtra under the provisions of the Act and is inter alia engaged in the business of supply of aluminum waste and scrap and copper waste. It is the case of the petitioner that an order came to be placed by the petitioner for supply of copper scrap from its supplier A.J. Trading and Company, Howrah, West Bengal. The goods which were to be supplied were transported through registered transporter in vehicle bearing registration no. DD-03-Q- 9223. It is also the case of the petitioner that a confirmed purchase order was received by the petitioner from its customer, namely M/s. Shree Madav Agencies Pvt. Ltd., Mundra, Gujarat. As per the commercial understanding between the parties, the purchase order contained specific commercial terms stating that the payment would

be released upon actual delivery of the goods.

5.1. It is the case of the petitioner that on 07.09.2025 at approximately 05:20 pm., when the goods were in transit, the same were intercepted by the officer of the State Tax Department near Ahmedabad. It is the case of the petitioner that during the time of interception, the driver of the vehicle was in possession of the valid documents as required under Rule 138 of the Central Goods and Services Tax Rules, 2017 (for short “the Rules”), which included the original tax invoice, E-way bill and other transportation documents. Upon interception, the statement of driver was recorded in Form GST MOV-01 and the order for physical verification was received in

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NEUTRAL CITATION

C/SCA/2646/2026 JUDGMENT DATED: 06/04/2026

0.06295772307348146

Form GST MOV-02. The respondent officers questioned the presence of the vehicle within Gujarat on the ground that the original E-way bill was generated from West Bengal to Bhiwandi, Maharashtra. Therefore, the order of detention under Section 129(1) of the Act was issued in Form GST MOV-06 alleging discrepancies. T