On July 16, 2026, the Andhra Pradesh High Court ruled in favor of Slv Elite Spaces LLP and others in a case involving the detention of goods under Section 129 of the GST Act. The petitioners were transporting TMT boxes with all the required documentation, including an E-way bill valid until midnight on April 13, 2026. However, the vehicle broke down at a weighbridge in Bhavanipuram, Vijayawada, necessitating a reissuance of the E-way bill. The authorities detained the vehicle and goods on April 14, 2026, after the E-way bill had expired, using Form GST MOV-06.
Read more: Supreme Court - Input Tax Credit cannot be claimed if the supplier has not deposited the tax, and the provision imposing this condition is constitutionally valid [Order attached]
The issue was whether the GST authorities could continue detention proceedings under Section 129 merely due to the E-way bill's expiry, despite no tax evasion. The Court observed that the vehicle had already reached Vijayawada before the bill expired but couldn't proceed due to the breakdown. The detention was solely based on the E-way bill's expiry without any evidence of tax evasion.
The Court noted that the distance between Bhavanipuram and Suryaraopet in Vijayawada is less than 8 km, making the invocation of Section 129 improper. Since the vehicle and goods were already released and no tax evasion occurred, the Court ordered the cessation of all further proceedings against the petitioner. The writ petition was allowed without costs.
Order Date - 16 July 2026
Parties: Slv Elite Spaces LLP and Others Vs The State of Andhra Pradesh and Others
Facts -
- Petitoner, Slv Elite Spaces LLP and Others were transporting TMT boxes from Vizianagaram to Suryaraopet, Vijayawada, with the required documents and an E-way bill valid until 11:59 p.m. on 13.04.2026.
- During transit, the vehicle broke down while being checked at a weighbridge and was parked at Bhavanipuram, Vijayawada, so that the E-way bill could be reissued.
- The vehicle was inspected at 10:00 a.m. on 14.04.2026, after the E-way bill had expired, and the authorities detained the vehicle and goods through Form GST MOV-06 under Section 129 of the GST Act.
- The petitioners approached the High Court, which initially ordered release of the vehicle and goods. During the hearing, the Government Pleader confirmed that the goods and vehicle had already been released.
Issue -
- Whether GST authorities could continue detention proceedings under Section 129 merely because the E-way bill expired during transit, when there was no tax evasion.
Order -
- The Court noted that the vehicle had already reached Vijayawada on 13.04.2026 but could not reach the destination because it broke down. The detention order relied only on expiry of the E-way bill and cited no other reason.
- The Court found no tax evasion on the part of the petitioner. Therefore, continuing proceedings merely because of the E-way bill expiry was considered inappropriate in the circumstances of the case.
- The Court particularly considered that Bhavanipuram and Suryaraopet are both in Vijayawada and the distance between them is less than 8 km. In these circumstances, invoking Section 129 was held to be improper.
- Since there was no tax evasion and the vehicle and goods had already been released, the Court directed the 4th respondent to drop all further proceedings against the petitioner. The writ petition was allowed with no order as to costs
