Judgment
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IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE EASWARAN S.
FRIDAY, THE 21ST DAY OF MARCH 2025 / 30TH PHALGUNA, 1946 WA NO. 546 OF 2025 AGAINST THE JUDGMENT DATED 28.2.2025 IN WP(C) NO.30274 OF 2024 OF HIGH COURT OF KERALA APPELLANT(S)/PETITIONER :
Y. BALAKRISHNAN AGED 53 YEARS PROPRIETOR, ONAM BEEDI COMPANY, 1/395, THAYYILRAMAPURAM, KAYAMKULAM, ALAPPUZHA DISTRICT, KERALA, PIN690508 RESIDING AT IV/1305, MAIN ROAD, VALLOM, THIRUNELVELI DISTRICT, TAMIL NADU, PIN - 628009
BY ADVS.
K.SRIKUMAR (SR.)
AMMU CHARLES K.MANOJ CHANDRAN S.A.MANSOOR (PATTANAM) RESPONDENT(S)/RESPONDENTS :
1 THE ENFORCEMENT OFFICER, ENFORCEMENT SQUAD, KOLLAM,SGST DEPARTMENT, TAX COMPLEX, ASRAMAM, KOLLAM, PIN - 691002
2 THE ASSISTANT ENFORCEMENT OFFICER, ENFORCEMENT SQUAD, KOLLAM, SGST DEPARTMENT, TAX COMPLEX, ASRAMAM, KOLLAM, PIN - 691002
3 THE COMMISSIONER OF STATE GOODS AND SERVICE TAX DEPARTMENT, 9TH FLOOR, TAX TOWER, KILLIPPALAM, KARAMANA P.O., THIRUVANANTHAPURAM, PIN - 695002
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4 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
5 THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, REPRESENTED BY THE PRINCIPAL COMMISSIONER GST, GST POLICY WING, NO.503, B WING, 5TH FLOOR, CBIC, HUDCOVISHALA BUILDING, BHIKAJI CAMA PLACE, R. K. PURAM, NEW DELHI, PIN - 110066
6 UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT, RAJPATH MARG, CENTRAL SECRETARIAT, NEW DELHI, PIN - 110001
SRI. V. GIRISHKUMAR-SC, SRI. R. HARISHANKAR- DSGI
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 21.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
Easwaran S., J.
This intra court appeal is preferred by the appellant/petitioner aggrieved by the judgment dated 28.2.2025 in W.P.(C) No.30274 of 2024.
2. The brief facts necessary for the disposal of the appeal are as follows:
The appellant approached the writ court challenging a notice for confiscation of goods issued under Section 130 of the Central Goods and Services Tax Act, 2017 (‘the Act’, for short). The Single Bench, who considered the writ petition at the admission stage, did not grant any interim relief and therefore, the proceedings before the statutory authority continued and culminated in the order of confiscation. The writ petition was subsequently amended and the final order of adjudication was also challenged. Before the Single Bench, it was contended by the appellant that the order of confiscation was passed without any authority of law inasmuch as no ingredients for confiscation of the goods under Section 130 of the Act has been made out. The petitioner had generated an e-invoice and e-way bill for the supply of 10 bags of beedies to M/s Alna Stores at Thiruvalla. These documents were uploaded in the GST Portal also. It was contended that, at the time of interception, the goods were covered by proper invoices and e-way bills and that, the IGST on the transaction has already been paid, which is already on the radar of
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GST network and therefore the confiscation of the goods and the conveyance merely for the reason of a deviation in the route, was without authority. It was further contended that the final order of adjudication was vitiated since no opportunity to cross examine the statements which were obtained from the 3rd parties was given by the proper officer. The learned Single Judge who considered the writ petition found that the adjudication on merits would necessarily involves adjudication of the disputed questions on fact and therefore relegated the writ petitioner to avail the statutory remedy of appeal available under the Act.
3. Heard Sri. K.Srikumar, the learned Senior counsel appearing for the appellant assisted by Smt.Ammu Charles, Sri. G Girish Kumar the learned Standing Counsel appearing for the 5th respondent, Sri.R.Harishankar, the learned DSGI appearing for the 6th respondent and Smt. Resmitha Ramachandran the learned Government Pleader appearing on behalf of the State respondents 1 to 4.
4. On consideration of the rival submissions raised across the Bar, we are of the considered view that there is no merit in the appeal. The contention of the appellant/writ petitioner revolves on the adjudication of the disputed questions of facts inasmuch as the contention is pointed towards the generation of e-way bills, invoices and also remittance of GST and also IGST. The further contention that the cross examination of the 3rd parties, whose statements were recorded by the proper officer while passing the final order of adjudication, was not extended to the
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appellant also does not impress us since it is open for the appellant to raise this contention before the appellate authority.
5. We find that the question as to whether the final adjudication order is vitiated for want of compliance of principles of natural justice is also a point which could be raised before the appellate and the appellate authority is also empowered to go into the said question and pass appropriate orders. The assertion of the appellant that no reasons are warranted for confiscation of the goods is essentially a disputed question of facts which has to be adjudicated by the appellate authority.
Therefore, we are of the considered view that the learned Single Judge was perfectly justified in declining to exercise its discretionary jurisdiction to entertain the writ petition. We are of the view that inasmuch as the learned Single Judge has not thought it fit to exercise his discretion and entertain the writ petition, we need not interfere with the said judgment in an intra-court appeal.
Accordingly, we are of the considered view that the writ appeal lacks merit, and the same is dismissed.
Sd/- DR. A.K.JAYASANKARAN NAMBIAR JUDGE
Sd/- EASWARAN S.
NS JUDGE