Judicial Intervention: Calcutta High Court Slams GST Authorities for ‘Arbitrary’ 4-Month Goods Detention

KOLKATA: In a stern warning to administrative overreach, the Calcutta High Court today ruled that the prolonged detention of commercial goods and vehicles without a formal seizure order is “arbitrary and illegal.” The bench was hearing a petition filed by a transporter whose vehicle was intercepted near the Howrah-Kolkata border and kept in custody for over 120 days based on a mere “MOV-02” (interception memo) without any subsequent legal proceedings.

Justice Nishu, presiding over the case, observed that the GST authorities had repeatedly ignored documentary evidence-including valid e-way bills and tax invoices – based on a “vague suspicion” of the firm’s genuineness. The court was particularly critical of the authorities’ insistence on the “personal appearance” of the proprietor, despite statutory provisions allowing for representation through legal counsel.

The judgment clarifies that GST officials cannot use administrative delays as a tool for harassment. The High Court has now directed the immediate release of the goods and the vehicle, while ordering the department to conduct a hearing through an authorized representative. This ruling is expected to have a significant impact on trade and logistics in the state, curbing the “inspector raj” that has frequently been cited as a bottleneck for West Bengal’s industrial growth.