The State Of Kerala vs. Mohammed Shereef
Held
The High Court dismissed the review petition, holding that for interstate transportation of exempted goods, the liability under Section 129(1)(b) of the CGST Act is an 'amount' (civil liability), not a 'penalty' based on tax. Therefore, the 4th proviso to Section 20 of the IGST Act, which aggregates penalties under CGST and SGST, does not apply, and no similar amount is payable under the SGST Act.
Facts
The State filed a review petition against a judgment that allowed the release of an interstate consignment of exempted goods, detained for lack of a valid delivery chalan, upon payment of the lesser of 5% of the goods' value or Rs. 25,000 under Section 129(1)(b) of the CGST Act. The State contended that a similar amount should also be payable under the SGST Act, as IGST includes components of both CGST and SGST.
Key Issues
The key legal issue was whether, for the detention of exempted goods during interstate transportation, the 'amount' payable under Section 129(1)(b) of the CGST Act also necessitated a similar payment under the SGST Act, considering the provisions of Section 20 of the IGST Act.
Sections Cited
Section 129(1)(b) of the CGST Act, Section 20 of the IGST Act
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Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 16TH DAY OF DECEMBER 2020 / 25TH AGRAHAYANA, 1942 RP.No.930 OF 2020 IN WP(C). 23397/2020 AGAINST THE ORDER/JUDGMENT DATED 02.11.2020 IN WP(C) 23397/2020(Y) OF HIGH COURT OF KERALA REVIEW PETITIONERS/RESPONDENTS 1 TO 3 IN WP(C): 1 THE STATE OF KERALA REPRESENTED BY ITS SECRETARY(TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, KERALA-695 001 2 THE COMMISSIONER OF KERALA STATE GST, KERALA STATE GST DEPARTMENT, TAX TOWER, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM,KERALA-695 002 3 THE ASSISTANT STATE TAX OFFICER, SURVEILLANCE SQUAD NOL1, KERALA SGST DEPARTMENT, MUTHANGA, WAYANAD-673 592 BY GOVERNMENT PLEADER DR.SMT.THUSHARA JAMES RESPONDENTS/PETITIONER AND RESPONDENTS 4 TO 7 IN WP(C): 1 MOHAMMED SHEREEF SON HUSSAIN, PROPRIETOR, HAYAT TRADERS, NELLIMALA BUILDINGS, K.E ROAD, 1ST MILE, KANJIRAPPALLY, KOTTAYAM-686 507 2 CHIEF COMMISSIONER OF CENTRAL TAX (CGST) AND CENTRAL EXCISE, CENTRAL REVENUE BUILDINGS, I.S PRESS ROAD, COCHIN, ERNAKULAM-682 018 3 GOODS AND SERVICE TAX COUNCIL, GOVERNMENT OF INDIA, OFFICE OF THE GST COUNCIL SECRETARIAT, 5TH FLOOR, TOWER II,
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