The court ruled that equitable relief is denied to parties lacking clean hands, especially where fraudulent practices are evident in tax evasion involving bogus entities.

JUDGMENT :

SANJEEV PRAKASH SHARMA, CJ.

1. By way of this writ petition, the petitioner has prayed for the following reliefs:

“I. issuance of a writ, order or direction especially in the nature of Certiorari for quashing the order in form GST- MOV-02 dated 30.07.2025 (Annexure P-16) under Section 68 of the GST Act, 2017 read with the relevant provisions of Central Goods and Services Tax Act, 2017/The Integrated Goods and Service Tax Act, 2017 and Goods and Services Tax (Compensation to States) Act, 2017 as which is only applicable for goods in transit and all subsequent proceedings being without jurisdiction, unconstitutional and violative of Article 265 of the Constitution of India and being against the mandate of of the above-mentioned Act and being arbitrary, per-se and in absolute violation of principles of natural justice.

ii) Issue a writ order or direction especially in the nature of mandamus directing the respondents in releasing the goods and conveyance as the detention is both illegal and time barred as per the Section 68 read with Rule 138A, 138B & 138C of the GST Act, 2017.

iii) Issue a writ, order or direction especially in the nature of Mandamus to the respondent officials for release of illegally detained goods and trucks bearing registration No.RJ32GE9020, as the same have been illegally detained without issuing any detention order under any applicable law;

iv) Issue any writ, order or direction that this Hon'ble Court may deem appropriate for compensation of the grave loss suffered by the petitioner and the continuing loss thereafter, due to the illegal actions including illegal detention of the goods which had reached its destination and vehicles by the respondent officials;

v) With a prayer that any further time barred proceedings may kindly be stayed till the pendency of the present writ petition and the goods and vehicles may kindly be released on the terms and condition that this Hon'ble Court may deem appropriate.

vi) Issuance of any writ, order or direction that this Hon'ble Court may deem appropriate for compensation of the grave loss suffered by the petitioner and the continuing loss thereafter, due to the illegal actions including illegal detention of the goods in transit and vehicles by the respondent officials;

vii) For the issuance of any other appropriate writ, order or direction which this Hon'ble Court may deem fit in the facts and circumstances of the present case.

viii) summon the complete record of the case x) Award the cost of the writ petition in favour of the petitioner and against the respondents.”

2. The petitioner before us is a private limited company and registered dealer having GSTIN-08AAGCT4615H1ZA in the State of Rajasthan under the Goods & Services Tax Act, 2017 (for short ‘the Act of 2017’).

3. Brief facts are that the petitioner purchases remelted lead and claims to sell after purifying the lead to manufactures of batteries. The remelted lead after its purification has a different HSN code. The purchase stated to be from another active registered