M/S. Peenya Industrial Gases (P) LTD. v. State Of Kerala - Kerala High Court, 28 June 2022

W.P.(C)No.14002/2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUE AY, THE 28TH DAY OF JUNE 2022 / 7TH ASHADHA, 1944 WP(C) NO. 14002 OF 2022 PETITIONER: M/S. PEENYA INDUSTRIAL GASES (P) LTD., PLOT NO. 30, P1, KIADB INDUSTRIAL AREA DOBASPET, NELAMANGALA TALUK BANGALORE, PIN - 562111, HAVING OFFICE AT MUPPATHADAM KUDANGALUR VILLAGE EDAYAR INDUSTRIAL AREA, ERNAKULAM-683 110, REPRESENTED BY ITS AUTHORIZED SIGNATORY BIJOY.P. BY ADVS.ALIAS M.CHERIAN BRISTO S PARIYARAM AJAI ALIAS CHALAPPURAM K.M.RAPHY NEENU ANNA BABU RESPONDENTS: 1 STATE OF KERALA,REPRESENTED BY ITS PRINCIPAL SECRETARY FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2 THE COMMISSIONER OF STATE TAX,TAX TOWERS, KARAMANA P.O KILLIPALAM, THIRUVANANTHAPURAM. PIN - 695 002. 3 THE STATE TAX OFFICER, SQUAD V, STATE GOODS AND SERVICES TAX DEPARTMENT ERNAKULAM, PIN - 682 015. 4 THE ASSISTANT STATE TAX OFFICER,SQUAD V, STATE GOODS AND SERVICES TAX DEPARTMENT ERNAKULAM, PIN - 682 015. 5 UNION OF INDIA, REPRESENTED BY ITS SECRETARY GST AUTHORITIES, MINISTRY OF FINANCE,GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN - 110 001. BY ADV MANU S., ASG OF INDIA OTHER PRESENT: ADV. JASMIN M M (GP) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C)No.14002/2022 2 JUDGMENT The petitioner has approached this Court being aggrieved by the proceedings initiated against the petitioner under Section 129 of the CGST Act in respect of industrial gas transported by the petitioner from Bangalore to Cochin Shipyard. It is the submission of the learned counsel for the petitioner that the proceedings under Section 129 were totally without juri iction and amounts to a harassment. It is submitted that every procedure contemplated by the law had been followed by the petitioner and the petitioner was forced to execute a bank guarantee for release of goods detained by the officer concerned. It is submitted that persons who are honestly doing business should not be penalised in such manner.

The learned Government Pleader on instructions would submit that the goods in question along with the conveyance have been released on the petitioner furnishing a bank guarantee. It is submitted that the officer has yet to conclude that there was any wrong doing on the part of the petitioner. It is submitted that, if the petitioner appears before the 4th respondent on a specified date, the officer will adjudicate the matter and pass a final order.

Having heard the learned counsel for the petitioner and the learned Government Pleader, I am of the opinion that this writ petition

W.P.(C)No.14002/2022 3 can be disposed of directing the 4th respondent to conclude the proceedings initiated against the petitioner under Section 129 of the CGST Act, after affording an opportunity of hearing to the petitioner. The petitioner shall appear before the 4th respondent at 11 A.M. on 12.7.2022. The petitioner shall produce all necessary documents before the 4th respondent and the 4th respondent shall complete the proceedings initiated against the petitioner under Section 129, by passing final order within a period of one month from 12.7.2022. Till final orders are passed, the bank guarantee produced by the petitioner shall not be encashed. GOPINATH P. JUDGE acd

W.P.(C)No.14002/2022 4 APPENDIX OF WP(C) 14002/2022 PETITIONER EXHIBITS Exhibit P1OF DELIVERY CHALLAN NO. 8676 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P2OF DELIVERY CHALLAN NO. 8677 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P3OF DELIVERY CHALLAN NO. 8678 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P4OF DELIVERY NOTE NO. 8676 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P5OF DELIVERY NOTE NO. 8677 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P6OF DELIVERY NOTE NO. 8678 DATED 30/03/2022 ISSUED BY THE PETITIONER. Exhibit P7OF E-WAY BILL NO. 131455349223 DATED 30/03/2022. Exhibit P8OF STATEMENT OF THE OWNER/FORM GST MOV-01 BEARING NO. VCR/V/426/21-22 DATED 31/03/2022 RECORDED BY 4TH RESPONDENT. Exhibit P9OF ORDER FOR PHYSICAL VERIFICATION/ FORM GST MOV-02 BEARING NO. VCR/V/426/2122 DATED 31/03/2022 ISSUED BY THE 4TH RESPONDENT. Exhibit P10OF PHYSICAL VERIFICATION REPORT/FORM GST MOV-04 BEARING NO. VCR/V/426/21-22 DATED 31/03/2022 ISSUED BY THE 4TH RESPONDENT. Exhibit P11OF ORDER OF DETENTION FORM GST MOV-06 BEARING NO. VCR/V/426/21-22 DATED 31/03/2022 ISSUED BY THE 4TH RESPONDENT. Exhibit P12OF NOTICE/FORM GST MOV-07 NO. VCR/V/426/21-22 DATED 31/03/2022 ALONG WITH ANNEXURE TO NOTICE/MOV-07 ISSUED BY

W.P.(C)No.14002/2022 5 THE 4TH RESPONDENT. Exhibit P13OF BANK GUARANTEE NO. 0505322BG0001136 DATED 04/04/2022 ISSUED BY STATE BANK OF INDIA. Exhibit P14OF EXPLANATION NO. PIGPLD/ GST/9939 DATED 05/04/22 FILED BEFORE 4TH RESPONDENT. Exhibit P15OF RELEASE ORDER/FORM GST MOV-05 BEARING NO. VCR/V/426/21-22 DATED 31/03/2022 ISSUED BY THE 4TH RESPONDENT.