Varahamurti Flexirub Industries PVT. LTD. vs. The State Of Kerala

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNE AY, THE 14TH DAY OF OCTOBER 2020 / 22ND ASWINA, 1942 WP(C).No.21626 OF 2020(C) PETITIONER/S: VARAHAMURTI FLEXIRUB INDUSTRIES PVT. LTD. S F NO.205, PADUVAMPALI, SUTUR TALUK,COIMBATORE, TAMIL NADU-641659, REPRESENTED BY ITS FACTORY MANAGER NARAYANAN S. BY ADVS. DR.K.P.PRADEEP SHRI.HAREESH M.R. SRI.T.T.BIJU SMT.T.THASMI RESPONDENT/S: 1 THE STATE OF KERALA REPRESENTED BY ITS SECRETARY (TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, KERLA-695001. 2 COMMISSIONER OF KERALA STATE GST, KERALA STATE GST DEPARTMENT, TAX TOWERS, KILLIPALAM, KARAMANA.PO, THIRUVANANTHAPURAM, KERLA-695002. 3 STATE TAX OFFICER SQUAR-VIII, OFFICE OF THE DEPUTY COMMISSIONER OF STATE TAX, INTELLIGENCE KERALA SGST DEPARTMENT, PALAKKAD-678001. 4 CHIEF COMMISSIONER OF CENTRAL TAXES CGST AND CENTRAL EXCISE, CENTRAL REVENUE BUILDIGNS, I.S PRESS ROAD, COCHIN ERNAKULAM-682018. 5 GOODS AND SERVICE TAX COUNCIL GOVERNMENT OF INDIA, OFFICE OF THE GST COUNCIL SECRETARIAT, 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110001, REPRESENTED BY ITS ADDITIONAL

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2 SECRETARY 6 GOODA AND SERVICES TAX NETWORK EAST WING, 4TH FLOOR, WORLD MARK-1,AEROCITY, NEW DELHI-110037, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. 7 NEW MODERN FOAM PAREKATTUKARA, MURIYAD P.O, THRISSUR, 680683, REPRESENTED BY ITS MANAGER. OTHER PRESENT: GP DR THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.10.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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3 JUDGMENT The petitioner has approached this Court aggrieved by Ext.P11 notice issued to him under Section 129(3) of the Goods and Service Tax Act ('the GST Act' for short) detaining his goods and vehicle. On a perusal of Ext.P11 notice, I find that the objection of the respondent was essentially that the value of the goods as shown in the e-way bill in the e-way bill portal was seen to be different from that shown in the hard copy of the e-way bill that was tendered by the driver of the vehicle to the authorities. The learned counsel would submit that the e-way bill that was uploaded in the portal contained the value that was originally ascribed to the goods in question, and at the time of transportation of goods, additional goods of relatively lower value were also entrusted with the transporter and a revised invoice as well e-way bill generated to cover the said transaction. He submits however, that the revised e-way bill could not be uploaded into the system before the commencement of the transportation and that is how the discrepancy arose when the authorities checked the transportation. 2.I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I find that while the explanation offered by the petitioner is one that ought to be considered by the respondents before passing the final order under Section 129(3) of the GST Act in Form GST MOV-

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4 9, the petitioner can be permitted to obtain a release of his goods and vehicle on furnishing a Bank guarantee for the amount covered by Ext.P11 notice. Accordingly, the writ petition is disposed by directing the respondents to release the goods and the vehicle to the petitioner, on the petitioner furnishing a Bank guarantee for the amount demanded in Ext.P11, making it clear that the objections furnished by the petitioner shall be duly considered by the respondents, and the petitioner afforded an opportunity of hearing, before passing the final order in Form GST MOV-9, in accordance with Section 129(3) of the GST Act. The learned Government Pleader shall communicate the gist of this order to the respondent, so as to enable the petitioner to effect the expeditious clearance of the goods and the vehicle on the terms indicated above. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the respondents, for further action. A.K.JAYASANKARAN NAMBIAR JUDGE SJ

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5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE REGISTRATION CERTIFICATE IN FORM GST REG.06 ISSUED BY THE ASSISTANT COMMISSIONER TNSGST DATED 23.12.2019. EXHIBIT P2OF THE LAST RETURN IN GSTR 3B FILED FOR AUGUST 2020 -21 BY THE PETITIONER. EXHIBIT P3OF THE INVOICE NO S12000002919 DATED 06.10.2020 ISSUED BY THE PETITIONER TO THE 7TH RESPONDENT. EXHIBIT P4OF THE E-WAY BILL NO 541207240115 DATED 06.10.2020. EXHIBIT P5OF THE LETTER OF CANCELLATION DATED 6.10.2020 ISSUED BY THE WHeeosON LOGISTICS SOLUTIONS, COIMBATORE. EXHIBIT P6OF THE AMENDED INVOICE NO S12000002919 DATED 06.10.2020 ISSUED BY THE PETITIONER TO THE 7TH RESPONDENT. EXHIBIT P7OF THE E-way BILL NO.541207240115 DATED 06.10.2020 EXHIBIT P8OF THE STATEMENT IN VC NO VII/20- 21 IN FORM GST MOV 01 DATED 07.10.2020 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P9OF THE NOTICE NO VC NO VII/178/20-21 IN FORM GST MOV 02 DATED 07.10.2020 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P10OF THE REPLY SUBMITTED TO THE 3RD RESPONDENT. EXHIBIT P11OF NOTICE IN FORM GST MOV-07 DATED 09.10.2020 ISSUED BY THE 3RD RESPONDENT.