Safa Mill Stores vs. The Assistant State Tax Officer - Kerala High Court, 06 September 2018

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU THURSDAY ,THE 06TH DAY OF SEPTEMBER 2018 / 15TH BHADRA, 1940 WP(C).No. 29390 of 2018 PETITIONER/S: M/S SAFA MILL STORES PMC XVI/556, M.C. ROAD, PERUMBAVOOR-683542 REPRESENTED BY ITS MANAGING PARTNER SRI. E.A. MUHAMMED BY ADV. AJI V.DEV RESPONDENT/S: 1 THE ASSISTANT STATE TAX OFFICER INTELLIGENCE SQUAD NO.11, STATE GST DEPARTMENT, MATTANCHERRY AT KARUKUTTY P.O, 683576. 2 THE STATE TAX OFFICER, INTELLIGENCE SQUAD NO.11, STATE GST DEPARTMENT, MATTANCHERRY AT KARUKUTTY P.O, 683576 3 THE DEPUTY COMMISSIONER (APPEALS) STATE GOODS AND SERVICE TAXES, TAX COMPLEX, PERUMANOOR P.O, THEVARA, KOCHI-683504 4 THE BRANCH MANAGER FEDERAL BANK, M.C. ROAD, PERUMBAVOOR-683542 OTHER PRESENT: GP. DR.THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.09.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT The petitioner, a partnership firm, transported certain goods

WPC No.29390 of 2018 2 ostensibly from Bombay to Perumbavoor. But when the petitioner tried to unload the goods at Malamury, Perumbavoor, the authorities checked the documents carried along with the goods and found that they did not correctly reflect the destination point. Suspecting tax evasion, the authorities detained the goods and demanded penalty as well as tax. Aggrieved, the petitioner filed WPC No.10256 of 2018 for the release of goods and for the expeditious completion of adjudication.

In terms of the judgment in WPC No.10256/2018, the petitioner furnished bank guarantee for the tax and penalty imposed, and had the goods released.

Later, the primary authority completed the adjudication and issued the Ext.P5 order, against which the petitioner intends to file a statutory appeal—within limitation. But he apprehends that the authorities, in the meanwhile, may encash the bank guarantee.

The learned Government Pleader, on the other hand, submits that the appellate authority has already been constituted under Section 107(1) of the CGST/SGST Act; the petitioner may file the statutory appeal in time. Therefore, I restrain the authorities from invoking the bank guarantee under Ext.P5 till the petitioner exhausts the statutory remedy or till the WPC No.29390 of 2018 3 appeal gets barred by limitation. With these observations, I dispose of this writ petition. DAMA SESHADRI NAIDU JUDGE APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE REGISTRATION CERTIFICATE ISSUED TO THE PETITIONER UNDER THE GST LAW. EXHIBIT P2 AOF THE REGISTRATION CERTIFICATE HELD BY M/S. EMJAIS TRADING ESTATE, MALAMURY UNDER GST LAW. EXHIBIT P3 A RUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT BEARING NO. OR.93/GST/2017-18 DATED 21.3.2018. EXHIBIT P4 AOF THE JUDGMENT OF THIS HON'BLE COURT IN W.P.C NO. 10256 OF 2018 DATED 23.03.2018. EXHIBIT P5 AOF THE ORDER ISSUED BY THE 1ST RESPONDENT BEARING OR NO. 93/GST/2017-18 DATED 27.04.2018. EXHIBIT P6 AOF THE LETTER ISSUED BY THE 2ND RESPONDENT TO THE 4TH RESPONDENT REQUESTING BANK GUARANTEE BE ADJUSTED TOWARDS PENALTY.