Qfroz Trades PVT. LTD. vs. The Assistant State Tax Officer
Held
The High Court held that since the goods were for export and not taxable, the penalty should be for exempted goods under Section 129(1)(a) of the CGST Act. It found the demand for tax and penalty in Ext.P5 to be a palpable erroneous exercise of jurisdiction and set aside the orders, limiting the penalty to Rs. 25,000.
Facts
An exporter of frozen shrimp had their consignment detained en route to Cochin Port for export to China, citing the absence of an E-way bill and a Letter of Undertaking endorsement on the invoice. The petitioner explained the delay was due to a lockdown and technical glitches. The authorities issued an order demanding substantial tax and penalty, followed by a confiscation notice.
Key Issues
The key issues were whether goods meant for export are 'exempted goods' for the purpose of penalty calculation under Section 129(1)(a) of the CGST Act, and whether the non-generation of an E-way bill and lack of LUT endorsement warranted the high penalty and confiscation proceedings.
Sections Cited
Section 129(3), Rule 46, Section 129(1)(a), Section 130, Rule 138A, Section 2(47), Section 11, Section 6, Rule 138, Section 9
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN THURSDAY, THE 24TH DAY OF AUGUST 2023 / 2ND BHADRA, 1945 WP(C) NO. 12503 OF 2021 PETITIONER: QFROZ TRADES PVT. LTD.,NO.XXII/623 (APII/857A), INDUSTRIAL AREA, AROOR, ALAPPUZHA - 688 534, REPRESENTED BY ITS MANAGING DIRECTOR, C. M. SUBAIR. BY ADVS. HARISANKAR V. MENON MEERA V.MENON RESPONDENTS: 1 THE ASSISTANT STATE TAX OFFICER,SQUAD NO.V, STATE GOODS AND SERVICES TAX DEPARTMENT, ERNAKULAM - 682 015. 2 THE STATE TAX OFFICER, SQUAD NO.V, INTELLIGENCE WING, KERALA STATE GOODS AND SERVICES TAX DEPARTMENT, ERNAKULAM - 682 015. 3 THE COMMISSIONER OF STATE TAX ,STATE GST DEPARTMENT, TAX TOWERS, KILLIPPALAM, KARAMANA, THIRUVANANTHAPURAM - 695 002. OTHER PRESENT: SMT.RESMITHA THOMAS-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.07.2023, THE COURT ON 24.08.2023 DELIVERED THE FOLLOWING:
ANU SIVARAMAN, J. = = = = = = = = = = = = = = = W.P.(C) No.12503 of 2021 = = = = = = = = = = = = = = = = Dated this the 24th day of August, 2023 JUDGMENT 1.The petitioner, an exporter of sea food, had obtained registration
The judgment continues below.
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