KORFEX INDUSTRIES PRIVATE LIMITED v. STATE OF RAJASTHAN & ORS – RAJASTHAN HIGH COURT
High Court, Rajasthan
Sanjeev Prakash Sharma, Justice & Sanjeet Purohit, Justice
KORFEX INDUSTRIES PRIVATE LIMITED
v.
STATE OF RAJASTHAN & ORS
D.B. CIVIL WRIT PETITION No. 12230/2025 dated 07.11.2025
Law : GST
Act Name : Central Goods & Service Tax Act, 2017
Relevant Section : Section 67, 68, 69, 73, 74, 129, 130 & 132
Rule Number : Rule 138, 138B 138C, 139, 140 & 141
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of revenue
Detention & seizure of goods – Goods in transit – Section 68 & 130 of CGST Act 2017 – Tax evasion through bogus ITC – Petitioner purchased from supplier with proper e-way bills and tax invoices – Vehicle reached factory destination and GST authorities conducted raid and issued Form GST MOV-02 treating goods as “in transit” despite vehicle already stationed at destination – Vehicle detained and moved 250 kms to Jaipur – No extension order (Form MOV-03) issued for physical verification – No seizure order (Form MOV-06) issued under Section 129 – Petitioner contended goods not in transit Section 68 inapplicable detention time-barred under Rule 138C – Respondents revealed petitioner part of fake ITC cartel through fictitious supply chain involving non-existent, de-registered or suspended firms – Driver statement revealed goods actually loaded at Delhi not Haryana – Petitioner exploited gap in GST electronic system lacking automated cross-check between liability and credit ledgers – Clean hands doctrine applied – Court cannot grant equitable relief to parties attempting to defraud public exchequer – Held: Writ petition dismissed with Rs 5,00,000 costs on petitioner through Director – Authorities directed to proceed under Section 130 confiscation and penalty.
Represented By:
Counsel for the Petitioner: Urvashi Dugga with HV Nandwana
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