103 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: January 31, 2026 M/S DEUTSCHE CARS PVT LTD .....Petitioner Versus STATE OF HARYANA AND OTHERS ..... Respondents CORAM:- HON'BLE MRS. JUSTICE LISA GILL HON'BLE MR. JUSTICE RAMESH CHANDER DIMRI Present: Mr. Sandeep Goyal, Senior Advocate with Mr. Rishab Singla, Advocate for the petitioner.

Ms. Mamta Singla Talwar, DAG, Haryana.

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LISA GILL, J.

1. Primary prayer in this writ petition reads under:

“ Issue a writ in the nature of certiorari for quashing of order in Form GST MOV-09 dated 06.05.2025 (Annexure-14) passed by respondent No. 3:

(a) In violation of the principles of natural Justice as the order has been passed even before expiry of the date of filing of the reply given in the Show Cause Notice Issued on 06.05.2025 for

13.05.2025.

(b) Reply dated 13.05.2025 (Annexure P-12) filed by the petitioner in response to the Show Cause Notice in Form GST MOV-07 dated NIL (Annexure P-11) has not even been considered in the impugned order and to the contrary, it has been observed that the petitioner has not filed any objections;

(c) No reasoning has been assigned in the impugned order for confirming the penalty which is in contravention to the law laid down by the Hon'ble Apex Court in the case Kranti Associates (P) Ltd. versus Masood Ahmed Khan, (2010) 9 SCC 496 (d) The detention in pursuance to which the impugned order has been passed itself was in contravention to the provisions of the Central GST Act/State GST Act read with IGST Act, 2017; and (e) There is no tax evasion in the transaction in question and the goods were accompanied by proper and genuine documents.”

2. It is submitted that petitioner is a Dealer duly registered under provisions of Central Goods and Services Tax Act, 2017 and Delhi Goods and Services Tax Act, 2017. Petitioner is engaged in the business of trading of cars and is an authorized dealer of BMW. On 03.05.2025, petitioner had sent one car for the purpose of its exhibition/display at its Faridabad Branch. Car was duly accompanied with delivery challan and e-way bill, mentioning the purpose of transportation as ‘Display’. It was intercepted at Badarpur border at Faridabad. Documents of this vehicle were produced by the driver. Statement of driver was recorded in Form GST MOV-01 by respondent No. 3. Vehicle was detained. Order of detention in Form GST MOV-6 was also issued on the ground that goods (car) are not covered by valid documents as transaction in question is interstate stock transfer within related parties without proper invoice.

3. Learned counsel for petitioner submits that petitioner got the vehicle released after paying the penalty amount under protest vide DRC-03 dated 06.05.2025. Release order dated 06.05.2025 was issued by respondent No. 3 and goods released. Show cause notice in Form GST MOV-07 was issued on 06.05.2025 itself with the proposal as to why penalty may not be imposed and petitioner was asked to file reply by 13.05.2025 and appear on the said date. Petitioner visited the office of respondent No. 3 on 13.05.2025 but he was not available. Detailed reply was filed on 13.05.2025. However, to the surprise of petitioner, penalty was imposed vide impugned order purportedly passed on 06.05.2025 itself though it was served upon petitioner on 19.05.2025. Learned counsel for petitioner vehemently argues that order dated 06.05.2025 has been passed in an absolutely illegal and arbitrary manner. Once the petitioner had got the vehicle released after depositing the penalty amount under protest on 06.05.2025, there was no occasion for passing the order on 06.05.2025 itself with show cause notice GST MOV-07 being issued on the said date itself with time being afforded to petitioner to file reply and appear on 13.05.2025. Specific order, with proper reasoning should have been passed in this regard after taking in account the stand of petitioner. In case, proposed penalty etc. had to be accepted by petitioner there was no question