IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TH FRIDAY, THE 11 DAY OF APRIL 2025 / 21ST CHAITHRA, 1947 WP(C) NO. 2082 OF 2025 PETITIONER:

MATHAI M.V AGED 55 YEARS S/O VERKEY RESIDING AT MANGALATH HOUSE, WEST VENGOLA PO PERUMBAVOOR ERNAKULAM, PIN - 683556 BY ADV FAIZEL K.

RESPONDENTS:

1 THE SENIOR ENFORCEMENT OFFICER ENFORCEMENT SQUAD NOT, ERNAKULAM, STATE GOODS AND SERVICES TAX DEPARTMENT, SECOND FLOOR ,SGST COMPLEX, PERUMANOOR ,ERNAKULAM., PIN - 683542

2 THE PRINCIPAL SECRETARY THE DEPARTMENT OF FINANCIAL SERVICES, MINISTRY OF FINANCE, GOVERNMENT OF INDIA,3RD FLOOR JEEVAN DEEP BUILDING SANSAD MARG, DELHI, PIN – 110001 BY ADV. DR.THUSHARA JAMES, SENIOR GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

BECHU KURIAN THOMAS, J.

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W.P.(C). No.2082 of 2025 --------------------------------------

Dated this the 11^th day of April, 2025

JUDGMENT

Petitioner seeks for a direction to quash the detention and confiscation order issued under the Central Goods and Services Tax Act, 2017 (for short, ‘the CGST Act’). Petitioner also seeks for a direction to release his vehicle apart from a declaration that the detention of the vehicle without proper notice violates the provisions of the Constitution.

2. Petitioner is the owner of a truck bearing registration No.KL-31-J-5759. According to the petitioner, on 23.11.2024, the vehicle transported bilge water from INS Vikramaditya from Cochin Wharf possessing all supporting documents including a delivery note issued by authorised personnel of the Indian Navy. While it was parked, the respondents inspected the vehicle on 24.11.2024 and thereafter moved the vehicle from the petitioner’s parking ground to another parking place on 25.11.2024. Later, on 10.01.2025, petitioner claims to have received a detention order under Section 130 of the CGST Act. According to the petitioner, he has no knowledge or involvement in the alleged tax evasion, and the vehicle was hired only to transport goods, for which no tax is payable and hence the detention is illegal. Exhibit-P2 delivery note issued by the Indian Navy indicates that there is no value for the goods found in the vehicle, and hence, the vehicle ought to be released since it has been remaining idle for more than 50 days as on the date of filing of the writ petition, causing serious loss to him, claims the petitioner.

3. A counter affidavit was filed initially, on behalf of the first respondent stating that petitioner has approached this Court with unclean hands after misrepresenting facts. It is averred that the vehicle was intercepted on 24.11.2024, and the petitioner himself was contacted, and the driver’s phone number was obtained. It is further averred that when the driver was contacted, he stated that no documents were entrusted with him before transporting the goods and hence MOV 1 and MOV 2 notices were served by affixing them on the vehicle, and a copy was sent through WhatsApp and the driver was asked to be present on 25.11.2024 with all the required documents. Thereafter, the driver gave a written statement that no documents corresponding to the goods loaded in the tanker lorry were entrusted to him by M/s. Petroliv Petroleums, and he also stated that the tanker contains water mixed with waste oil. It is also stated that an order of confiscation dated 21.12.2024 was received by the petitioner himself, and it is reasonably understood that petitioner in collusion with M/s. Petroliv Petroleums, is attempting to get release of the vehicle by misleading the Court. According to the respondents, the goods detained are hazardous waste governed by the Hazardous Material (Management, Handling and Transboundary Movement) Rules 2007, and are to be handled, stored and transported following the guidelines issued by the Central Pollution Control Board from time to time. Since sullage can be han