M/S.Hero Ecotech LTD. vs. The Asst. Sales Tax Officer
Original PDF →IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 17TH DAY OF JULY 2020 / 26TH ASHADHA, 1942 WP(C).No.10668 OF 2018(G) PETITIONER: M/S.HERO ECOTECH LTD. MANGLI, FOCAL POINT, PHASE-8, CHANDIGARH ROAD, LUDHIANA - 141 010, PUNJAB, REPRESENTED BY ITS AREA SALES MANAGER,P.K.RAJAN. BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA SMT.MEERA V.MENON RESPONDENT: THE ASST. SALES TAX OFFICER SQUAD NO.2, STATE GOODS & SERVICE TAX DEPARTMENT, PALAKKAD - 678 001. SRI.C.K.GOVINDAN, SPL.GOVT. PLEADER TAXES THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C) No.10668/18 -:2:- JUDGMENT Dated this the 17th day of July, 2020 This writ petition is filed challenging Ext.P2 notice issued by the respondent under Section 129 of the State Goods and Services Act, 2017. Petitioner is an assessee under the GST Act, 2017, engaged in the manufacture and sale of bicycles. On the basis of orders received, consignment of bicycles were transported in lorry No.TN 38/AP-9081 under three invoices. However, the consignment of bicycles were intercepted and detained. The reason stated, as can be deciphered from Ext.P2, is that there was a time delay between the invoices and transportation which raised suspicion that consignor and consignee colluded for multiple transport of goods with the same set of invoices and there by evaded tax.
It is submitted by the learned counsel for the petitioner that the amount directed in Ext.P2 notice was deposited by the petitioner for the purpose of releasing the detained vehicle and consignments.
A counter affidavit has been filed on behalf of the respondent wherein it is stated that the vehicle was detained on
W.P.(C) No.10668/18 -:3:- account of the fact that the supplier had issued the invoices 21 days and 7 days prior to the time of removal of goods, which was in contravention to the provisions of the CGST Act.
Petitioner has filed a reply affidavit denying the contentions regarding the delay in removal of goods and according to them, the inter-state sale of bicycles was carried out properly.
I have heard Sri.Harisankar V.Menon, learned counsel for the petitioner and Sri.C.K.Govindan, learned Special Government Pleader.
The counsel for the petitioner referring to Section 31 of CGST Act, 2017 and pointed out that as per the statute, an invoice could be issued either at the time of removal of goods or prior to the delivery of the goods and that the same is in consonance with the statute and hence, there is no cause for doubting any evasion of tax.
Even though aforenoted contention is impressive, still, in view of the fact that an adjudication is already pending, it is only proper that a conclusion is not entered into at this juncture. For the present, a direction to complete the adjudication proceedings at the earliest would be sufficient in the instant case.
Accordingly, I direct the respondent to complete the
W.P.(C) No.10668/18 -:4:- adjudication proceedings in relation to Ext.P2 notice, within an outer time period of two months from the date of receipt of a copy of this judgment. Writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE vps
W.P.(C) No.10668/18 -:5:- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF INVOICE NO.17040129 OF M/S HERO ECOTECH LTD. DATED 25.12.2017. EXHIBIT P1(a) COPY OF INVOICE NO.17040139 OF M/S HERO ECOTECH LTD. DATED 08.01.2018. EXHIBIT P1(b) COPY OF INVOICE NO.17040140 OF M/S HERO ECOTECH LTD. DATED 08.01.2018. EXHIBIT P2 COPY OF NOTICE ISSUED BY THE RESPONDENT DATED 15.01.2018. EXHIBIT P3 COPY OF DEMAND DRAFT NO.454027 FOR RS.46709/-
SBI,
PALAKKAD
DATED 19.01.2018. EXHIBIT P3(a) COPY OF DEMAND DRAFT NO.454028 FOR RS.46709/-
SBI,
PALAKKAD
DATED 19.01.2018. EXHIBIT P4 COPY OF ORDER ISSUED BY THE RESPONDENT DATED 19.01.2018. EXHIBIT P5 COPY OF LETTER SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT DATED 16.01.2018. EXHIBIT P6 COPY OF PRESS STATEMENT PUBLISHED BY THE KERALA GST DEPARTMENT, TAW TOWER, KILLIPPALAM,
KARAMANA, THIRUVANANTHAPURAM DATED 1-1-2018.
Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.