Aashmi Traders vs. The Assistant State Tax Officer
Held
The High Court directed that the bank guarantee would not be invoked if the petitioner deposits 20% of the disputed tax amount, as required by Section 112(8)(b) for an appeal to the Tribunal. This deposit will be considered sufficient compliance for filing an appeal once the Tribunal is constituted, provided the bank guarantee is kept alive.
Facts
The petitioner's goods were detained and released under Section 129 of the CGST/SGST Act upon furnishing a bank guarantee. After the first appellate authority confirmed the original order, the petitioner sought to prevent the invocation of the bank guarantee, as the Appellate Tribunal was not yet constituted, preventing them from filing a second appeal.
Key Issues
The key issue was whether authorities could invoke a bank guarantee furnished under Section 129 when the Appellate Tribunal was not constituted, thereby denying the petitioner the right to file a second appeal, and what conditions should apply.
Sections Cited
Section 129, Section 112, Section 112(8)(b), Circular No.132/2/2020-GST
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 12TH DAY OF OCTOBER 2022 / 20TH ASWINA, 1944 WP(C) NO. 31418 OF 2022 PETITIONER: AASHMI TRADERS MP III 558A, CHEMPAKAMANGALAM, KORANI -P.O, THIRUVANANTHAPURAM – 695 104. REPRESENTED BY ITS PROPRIETOR SRI. SAMEEL BY ADVS. AJI V.DEV ALAN PRIYADARSHI DEV S.SAJEEVAN RESPONDENTS: 1 THE ASSISTANT STATE TAX OFFICER SURVEILLANCE SQUAD-I, STATE GST DEPARTMENT, AMARAVILA, THIRUVANANTHAPURAM-, PIN – 695 122. 2 THE STATE TAX OFFICER [INT], MOBILE SQUAD NO.III, STATE GST DEPARTMENT, THIRUVANANTHAPURAM, AT MINI CIVIL STATION, NEYYATTINKARA-, PIN – 695 122. 3 THE JOINT COMMISSIONER [APPEALS], STATE GOODS & SERVICES TAX DEPARTMENT TAX TOWER, KILLIPPALAM, KARAMANA -P.O, THIRUVANANTHAPURAM-, PIN – 695 002. 4 THE COMMISSIONER OF STATE TAX, STATE GOODS & SERVICES TAX DEPARTMENT, TAX TOWER, KILLIPPALAM, KARAMANA -P.O, THIRUVANANTHAPURAM-, PIN – 695 002. 5 STATE OF KERALA REPRESENTED BY ADDITIONAL CHIEF SECRETARY (TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM , PIN – 695 001. W.P.(C)No.31418/2022 2 OTHER PRESENT: ADV. THUSHARA JAMES (SR GP) THIS WRIT PETITION (CIVI
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