AJITH GOPI v. STATE OF KERALA & ORS

Introduction

This judgment clarifies the scope of Section 129 regarding detention of goods in transit and reiterates the mandatory document requirements prescribed under Rule 138A of the CGST Rules. The Kerala High Court held that where goods transported from the registered premises of a supplier to the purchaser are accompanied by a valid tax invoice and e-way bill, detention proceedings cannot be sustained merely because the transporter fails to produce the supplier’s purchase invoice from an unregistered dealer.

The Court further held that the detention notice must clearly specify the alleged violation. Authorities cannot subsequently justify detention on grounds that were never mentioned in the statutory notices.