Alain Gold And Diamonds vs. The Assistant State Tax Officer - Kerala High Court, 02 July 2020

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THUR AY, THE 02ND DAY OF JULY 2020 / 11TH ASHADHA, 1942 WP(C).No.13061 OF 2020(G) PETITIONER/S: ALAIN GOLD AND DIAMONDS HIGH SCHOOL JUNCTION,KARUNAGAPPALLY, KOLLAM DISTRICT,PIN-690518,REPRESENTED BY ITS PROPERTRESS S.RAHUMATH. BY ADV. SRI.S.ANIL KUMAR (TRIVANDRUM) RESPONDENT/S: 1 THE ASSISTANT STATE TAX OFFICER SQUAD NO.II,STATE GOODS AND SERVICES TAX DEPARTMENT,KOTTARAKKARA, KOLLAM DISTRICT,PIN-691506. 2 THE COMMISSIONER OF STATE TAXES, STATE GOODS AND SERVICES TAX DEPARTMENT,TAX TOWERS,KARAMANA, THIRUVANANTHAPURAM-695002. OTHER PRESENT: GP DR THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.13061 OF 2020 -2- JUDGMENT Dated this the 2nd day of July 2020 Petitioner has approached this Court by challenging Exts.P4, 4(a) and P7 notices. The further prayer of the writ is for issuance direction to the 1st respondent to refrain from proceedings further under Section 129 of the State Goods and Service Tax Act (for short, 'SGST Act').

Sri.S.Anil Kumar, learned counsel appearing on behalf of the petitioner submits that the order of detention and imposition of penalty is not in terms of the Circular Ext.P5 paragraph No.

At this stage of hearing this Court specifically apprised Sri.S. Anil Kumar that it would not be the domain to consider the applicability or non applicability of the Circular particularly when it is a prima facie view of the Adjudicating Authority to obtain the goods and imposition of penalty. Petitioner is at liberty to raise all these points at the appropriate time when adjudication proceedings would be initiated.

WP(C).No.13061 OF 2020 -3-

Faced with such view learned counsel for the petitioner confines his prayer for release of the goods against furnishing of the bank guarantee and simple bond in terms of the provisions of Section 129 of the SGST Act. The aforementioned prayer is accepted. Writ petition is disposed of by directing the 1st respondent to release the goods on furnishing the requirements of law as noticed above i.e., furnishing the bank guarantee and simple bond, and adjudication be also done in accordance with law, as expeditiously as possible. AMIT RAWAL vv JUDGE

WP(C).No.13061 OF 2020 -4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF DELIVERY CHALAN NO.5 DATED 20.06.2020. EXHIBIT P2 COPY OF ORDER DATED 20.06.2020 IN GST MOV 02 ISSUED BY THE 1ST RESPONDENT FOR PHYSICAL VERIFICATION EXHIBIT P3 COPY OF PHYSICAL VERTIFICATION REPORT DATED 20.06.2020 EXHIBIT P4 COPY OF DETENTION ORDER DATED 20.06.2020 ISSUED BY THE 1ST RESPONDENT EXHIBIT P4(A) COPY OF NOTICE DATED 20.06.2020 ISSUED BY THE 1ST RESPONDENT U/S 129(3)OF THE CGST/SGST ACT. EXHIBIT P5 COPY CIRCULAR NO.10/10/2017-GST DATED 18.10.2017 OF GOVT OF INDIA EXHIBIT P6(COLLECTIVELY) COPY OF LETTER DATED 22.06.2020 ADDRESSED TO THE 1ST RESPONDENT,WITH ENCLOSURES EXHIBIT P7 COPY OF REPLY NOTICE DATED 23.06.2020/24.06.2020 OF THE 1ST RESPONDENT EXHIBIT P8 COPY OF JUDGMENT OF THE HON'BLE HIGH COURT OF ALLAHABAD IN VSL ALLOYS INDIA PVT.LTD.(2018 TIOL-2859-HC ALL.GST). EXHIBIT P9 COPY OF ORDER DATED 19.09.2018 IN SPECIAL LEAVE TO APPEAL(C)NO.17073/2018.OF THE HON'BLE SUPREME COURT.