Abubakar Mines And Minerals Thr. Prop. Farooq Baig vs. The Additional Commissioner (Ae) CGST Kolhapur And Anr
Held
The Court, accepting the respondents' contention that the prohibition order automatically came to an end after its extended period, ruled that the continued detention was unlawful. It directed the forthwith release of the petitioner's goods, clarifying that this order would not impact the legality of the ongoing investigation or collected evidence.
Facts
The petitioner challenged the continued detention and prohibition on its goods, arguing it violated Section 67(7) of the CGST Act after a prohibition order dated 26th September 2024. The respondents, in their affidavit, stated that the prohibition order automatically ceased to operate upon expiry of its extended period.
Key Issues
The key legal issue was whether the continued detention of goods under a prohibition order was lawful after the expiry of the period prescribed under Section 67(7) of the CGST Act.
Sections Cited
Section 67(7), Section 67(2), Rule 139(4)
AI-generated summary — verify with the full judgment below
33-WP-1943-2026.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH AT KOLHAPUR CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 1943 OF 2026 WITH INTERIM APPLICATION NO. 1140 OF 2026 Abubakar Mines and Minerals ...Petitioner. Versus The Additional Commissioner (AE) CGST, Kolhapur and Another ...Respondents. —————— Mr. Kuldeep Kulkarni for the Petitioner. Mr. Anand Kulkarni with mr. Shridhar Patil (Through VC) with Mr. Vaibhav Kupawade, for the Respondent Nos.1 & 2. —————— Coram : Sharmila U. Deshmukh & Neeraj P. Dhote, JJ. Date : September 02, 2026. P. C. :
By the present petition, the Petitioner seeks a declaration that the continued detention and the prohibition on the Petitioner’s goods pursuant to the order dated 26th September 2024 is contrary to Section 67(7) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’) and seeks a direction of forthwith release of the Petitioner’s goods.
The Respondent Nos.1 and 2 have filed Affidavit-in-Reply dated 21st August 2026 and has stated in paragraph No.6 as under:
“6. I further say and submit that after passing of prohibition order dated 26.09.2024 was issued in the Form GST INS-03 under secti
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