Appeal dismissed — ruling against M/S Shreeji Steel (Petitioner)
In Short
A scrap trading business challenged a tax penalty and confiscation order after its goods and truck were intercepted by the mobile squad. The court found that the petitioner had alternative legal remedies available and failed to show any valid reason to bypass them, ultimately dismissing the petition.
The Parties
Party A: M/S Shreeji Steel
Party B: State Tax Officer, Kutch Mobile Squad
Advocates & Judges
For Party A: Learned Advocate Mr. Jatin Harjai, Learned Advocate Mr. Dhruv Chhajed, Learned Advocate Mr. Sujay J Adwshra, Learned Advocate Mr. Jagrat B Shah
For Party B: Learned Advocate Mr. Raj Tanna AGP
Judge(s): Hon'ble Justice A.S. Supehia, Hon'ble Justice Vaibhavi D. Nanavati
What the Case Was About
The petitioner bought scrap iron waste from a supplier and sent it in a truck to a buyer. The state tax mobile squad intercepted the truck on the highway and inspected it. Authorities later issued a notice to confiscate the goods and the truck, and imposed heavy fines and penalties because they claimed the supplying firm was a bogus entity whose registration was eventually cancelled. The business challenged these tax notices directly in the High Court through a writ petition instead of filing a standard tax appeal.
Judgment Date
01/10/2026
The Outcome
The court dismissed the writ petition, ruling against the petitioner and directing them to pursue their remedy through the normal statutory appeal process.
What the Court Looked At
- The court noted that the petitioner had an alternative and effective remedy of filing an appeal under Section 107 of the CGST Act against the tax order.
- The petitioner argued that the proper officer violated rule rules regarding document and conveyance verification, but the court examined the record and found no such violation.
- The court observed that the physical verification of the transport vehicle was properly carried out by an officer authorized by the Commissioner.
- The state authorities pointed out that the supplier's business registration was cancelled and its office was found closed during physical verification.
The court noted that the petitioner chose to bypass the statutory appeal mechanism despite clear legal remedies being available under the tax laws.
What This Means For You
This case shows that doing business with a supplier whose tax registration turns out to be fake or cancelled can drag you into serious tax trouble and vehicle seizures. If tax authorities intercept your goods and claim your supplier is a ghost company, you cannot simply rush straight to the High Court to skip the standard appeal process. You must be extremely careful about verifying the genuine background and active tax status of every business partner you trade with. Setback Solutions can help you understand your options and coordinate next steps when you face complex tax notices.
You Still Have Options
If you are facing a sudden tax notice, a seized vehicle, or an adverse order from tax authorities, it can feel overwhelming and stressful. You do not have to handle the confusion alone, as you can still explore alternative remedies, seek a second opinion, or look into statutory appeals. Setback Solutions is not a law firm and does not provide legal advice or guarantee any specific outcome, but we are here to help you understand your choices and coordinate your next steps. Reach out to us today to get clear, plain-language guidance on how to navigate your tax disputes.