41 km Route Deviation Not Justified: Madras HC says rerouting ‘Malafide Intention’ to Deliver goods Illegally, Upholds GST Detention Order [Read Order]

The Madras High Court has upheld a detention order issued by the GST ( Goods and Services Tax ) authorities and dismissed the company’s plea challenging the proceedings.

The Court noted that the vehicle transporting TMT bars had deviated from the standard delivery route by over 41 kilometers, and this deviation could not be justified on technical or logistical grounds.

The petitioner, J R Metal Chennai Limited argued that two consignments were being transported, one already delivered to Chinnavedampatti, and the second destined for Ramanathapuram, which was delayed due to traffic and mechanical failure.

However, the GST intelligence officials intercepted the vehicle late at night and detained the goods based on a “route mismatch.” Although the petitioner submitted a reply and a rectification request, the authorities passed a confirmation order without accepting the justification.

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The petitioner relied on several precedents, including those from the Madurai Bench, Telangana High Court, and Allahabad High Court, to assert that route deviation does not by itself indicate intent to evade tax.

While rejecting these submissions, the Court held that the present case was distinguishable. Unlike previous cases where route deviation arose due to language barriers or accidental navigation errors, the current situation involved a Tamil Nadu-based dealer operating within the same state, and the deviation appeared intentional.

Additionally, the respondent authority had supported the finding with thorough justification, including a route sketch. Seeing no violation of natural justice or procedural irregularities, the Court declined to intervene in the order.

The bench found that the petitioner had failed to provide a convincing explanation for the circuitous travel route when the actual delivery location was only 9 kilometers away from the point of departure, leading the Court to infer malafide intention to deliver goods illegally.

Consequently, the bench of Justice Krishnan Ramasamy dismissed the writ petition, while granting liberty to the petitioner to approach the appellate authority. However, the Court imposed a cost of ₹10,000, payable to the Principal of the Government Naturopathy Medical College and Hospital, as a condition precedent for filing an appeal.

The appellate authority has been directed to entertain the appeal on submission of proof of cost payment and dispose of it at the earliest.

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