Enviro Safety Glass vs. Assistant State Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNE AY, THE 22ND DAY OF JULY 2020 / 31ST ASHADHA, 1942 WP(C).No.14799 OF 2020 PETITIONER/S: ENVIRO SAFETY GLASS PLOT NO.53, HEBBAL INDUSTRIAL AREA, 2ND PHASE, ANAGALLY HOBLI, MANDYA DISTRICT, BELAGOLA - 571 606, KARANATAKA STATE, REPRESENTED BY ITS PARTNER K.HARISH KUMAR. BY ADVS. SRI.TOMSON T.EMMANUEL SRI.V.DEVANANDA NARASIMHAM RESPONDENT/S: 1 ASSISTANT STATE TAX OFFICER SURVEILLANCE SQUAD NO.III, STATE GOODS AND SERVICE TAX DEPARTMENT, WAYANAD AT KATTIKULAM - 670 646. 2 STATE TAX OFFICER SURVEILLANCE SQUAD NO.III, STATE GOODS AND SERVICE TAX DEPARTMENT, WAYANAD AT KATTIKULAM - 670646. 3 STATE OF KERALA STATE GOODS AND SERVICE TAX DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695001, REPRESENTED BY SECRETARY TO GOVERNMENT. 4 COMMISSIONER OF GOODS AND SERVICES TAX GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, GST POLICY WING, NEW DELHI - 110 001. 5 VINAYAKA SAFETY GLASS V/349, 1ST FLOOR SYAMALAYAM, KALLARA ROAD, EROOR P.O., THRIPUNITHURA - 682 306. OTHER PRESENT: GP THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.14799 OF 2020 2 JUDGMENT The petitioner has approached this Court aggrieved by Exts.P5 and P5(a) detention notices that have been served on him, insisting on the petitioner paying certain amounts by way of security as a condition for release of the vehicles and the goods. On a perusal of Ext. P5 and P5(a) detention notices, I find that the detention of the vehicles carrying the goods at the instance of the petitioner, was on the ground that the e-way bill covering the interstate movement of the goods had not been produced before the detaining authority when demanded. It is the case of the petitioner that the e-way bill covering the second leg of the journey from Cochin to Kasargod had been produced. The said explanation however, could not suffice to explain the absence of the e-way bill covering the first leg of the journey. Under the said circumstances, I find that the detention of the vehicles and the goods cannot be said to be unjustified. Taking note of the submission of the learned counsel for the petitioner, that he may be permitted to obtain a release of the vehicles and the goods on furnishing a bank guarantee for the amount demanded in Exts.P5 and P5(a) notices, I direct that, if the petitioner furnishes a bank guarantee to cover the amount demanded in Exts.P5 and P5(a) notices, the respondent shall forthwith release the vehicles and the goods to the petitioner. The respondent shall thereafter, proceed to adjudicate the matter under Section 130 of the GST Act and in the said proceedings the objections of the petitioner on the merits of the proposal to impose tax and penalty shall also be considered by the respondent.

WP(C).No.14799 OF 2020 3 The learned Government Pleader shall communicate the gist of this order to the respondents immediately, so as to facilitate an early clearance of the vehicles and the goods. The writ petition is disposed as above. A.K.JAYASANKARAN NAMBIAR JUDGE SJ

WP(C).No.14799 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF TAX INVOICE NO.620 DATED 14/07/2010 RAISED ON M/S.VINAYAKA SAFETY GLASS, THRIPUNITHURA AGAINST IGST @ OF 18% EACH FOR THE SALE OF TEMPERED TOUGHN GLASS, TRANSPORTED IN VEHICLE NO.KA 09C 9213. EXHIBIT P1(A)OF TAX INVOICE NO.621 DATED 14/07/2020 RAISED ON M/S.VINAYAKA SAFETY GLASS, THRIPUNITHURA AGAINST IGST @ OF 18% EACH FOR THE SALE OF TEMPERED TOUGHN GLASS, TRANSPORTED IN VEHICLE NO.KA 55A 0535. EXHIBIT P2OF E-WAY BILL NO.161232721432 DATED 14/07/2020 GENERATED AT 01.23 OM FOR TRANSPORT OF GOODS IN VEHICLE NO.KA 09 C9213. EXHIBIT P2(A)OF E-WAY BILL NO.141232721832 DATED 14/07/2020 GENERATED AS 01.24 PM FOR TRANSPORT OF GOODS IN VEHICLE NO.KA 55A 0535. EXHIBIT P3OF TAX INVOICE NO.VSG/20-21/031 DATED 14/07/2020 RAISED BY 5TH RESPONDENT, ON M/S.INTERIOR-1, PALARIVATTOM,NOTING THEIR SITE ADDRESS AT KASARAGOD. EXHIBIT P3(A)OF TAX INVOICE NO.VSG/20-21/032 DATED 14/07/2020 RAISED BY 5TH RESPONDENT, ON M/S.INTERIOR -I, PALARIVATTOM NOTING THEIR SITE ADDRESS AT KASARAGOD. EXHIBIT P4OF THE E-WAY BILL NO.551189106912 DATED 14/07/2020 GENERATED AT 02.28 PM ON THE BASIS OF EXT.P3 TAX INVOICE. EXHIBIT P4(A)OF E-WAY BILL NO.551189107746 DATED 14/07/2020 GENERATED AT 02.30 PM ON THE BASIS OF EXT.P3(A) TAX INVOICE.

WP(C).No.14799 OF 2020 5 MOV-06 AND MOV-07 DATED 15/07/2020 ISSUED SIMULTANEOUSLY AT 08.49 AM, BY 1ST RESPONDENT, DEMANDING TAX AND PENALTY U/S.129 OF IGST ACT, CONSIDERING EXT.P3 TAX INVOICE AND P4 E-WAY BILL HANDED OVER TO DRIVER, BY 5TH RESPONDENT, WHILE DEVIATING THE ROUTE TOWARDS KASARAGOD DIRECTION. EXHIBIT P5(A)OF NOTICES IN MOV-02, MOV-04, MOV-06 AND MOV-07 DATED 15/07/2020 ISSUED SIMULTANEOUSLY AT 08-40 AM, BY 1ST RESPONDENT, DEMANDING TAX AND PENALTY U/S.129 OF IGST ACT, CONSIDERING EXT.P3(A) TAX INVOICE AND P4(A)- E WAY BILL HANDED OVER TO DRIVER, BY 5TH RESPONDENT, WHILE DEVIATING THE ROUTE TOWARDS KASARAGOD DIRECTION. EXHIBIT P6OF REPLY DATED 16/07/2020 SUBMITTED BEFORE 1ST RESPONDENT BY PETITIONER FIRM, POINTING OUT AVAILABILITY OF EXT.P1 TAX INVOICE AND EXT.P2 RELATED E- WAY BILL FOR THE TRANSPORT STARTED FROM KARNATAKA, USED UPTO THE PLACE OF DEVIATION MADE TOWARDS KASARAGOD. EXHIBIT P6(A)OF REPLY DATED 16/07/2020 SUBMITTED BEFORE 1ST RESPONDENT BY PETITIONER FIRM, POINTING OUT EXISTENCE OF EXT.P1(A) TAX INVOICE AND EXT.P2(A) RELATED E-WAY BILL FOR THE TRANSPORT STARTED FROM KARNATAKA, USED UPTO THE PLACE OF DEVIATION TOWARDS KASARAGOD. EXHIBIT P7OF REPLY DATED 16/07/2020 SUBMITTED BEFORE 1ST RESPONDED BY 5TH RESPONDENT (CONSIGNEE) IN POINTING OUT EXISTENCE OF EXT.P1 TAX INVOICE AND EXT.P2 RELATED E-WAY BILL FOR THE TRANSPORT STARTED FROM KARNATAKA. EXHIBIT P7(A)OF REPLY DATED 16/07/2020 SUBMITTED BEFORE 1ST RESPONDED BY 5TH RESPONDENT IN POINTING OUT EXISTENCE OF EXT.P1(A) TAX INVOICE AND EXT.P2(A) RELATING E-WAY BILL FOR THE TRANSPORT

WP(C).No.14799 OF 2020 6 STARTED FROM KARNATAKA. EXHIBIT P8OF JUDGMENT DATED 08/11/2019 IN WPC NO.30185 OF 2019 PASSED BY THIS HON'BLE COURT, ON SIMILAR SITUATION.