Daiwik Motors vs. The Assistant State Tax Officer
Held
The High Court upheld the release of goods on Bank Guarantee but clarified that the detention itself was not without jurisdiction. It directed the Assistant State Tax Officer to conduct an independent adjudication on the show cause notice, allowing the appellant to file objections and appear for a personal hearing, without being influenced by the Single Judge's observations.
Facts
Daiwik Motors challenged the detention of goods and a show cause notice under Section 129 of the CGST Act. The detention was based on a stock transfer documented by a delivery challan and e-way bill, which the officer deemed contrary to GST provisions, despite being described as an 'outward exhibition/fair'. The Single Judge had permitted release on Bank Guarantee but found the detention justified.
Key Issues
Whether the detention of goods and issuance of notice under Section 129 of the CGST Act for alleged contravention during stock transfer was justified, and whether the transaction constituted a 'supply' attracting GST liability.
Sections Cited
Section 129(1), Section 129(3), Section 129(4), Section 130, Section 7, Rule 55
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM & THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR TUESDAY, THE 17TH DAY OF DECEMBER 2019 / 26TH AGRAHAYANA, 1941 WA.No.2473 OF 2019 AGAINST THE JUDGMENT DATED 04-12-2019 IN WP(C) 32848/2019(E) OF HIGH COURT OF KERALA APPELLANT/PETITIONER: DAIWIK MOTORS NEAR TOWN LIMIT, KADAPPAKADA, KOLLAM - 691008, REPRESENTED BY DEEPAK GOPINADHAN, GENERAL MANAGER. BY ADV. SMT.BLOSSOM MATHEW RESPONDENTS/RESPONDENTS: 1 THE ASSISTANT STATE TAX OFFICER MOBILE SQUAD NO.I, STATE GOODS AND SERVICE TAX DEPARTMENT, KOLLAM - 691002. 2 THE DEPUTY COMMISSIONER OF STATE TAX BAPPUJI NAGAR, ASRAMOM, KOLLAM - 691002. 3 THE ASSESSING AUTHORITY CENTRAL JURISDICTION, KOLLAM DIVISION, KOTTARAKARA RANGE, PULAMON, KOTTARAKARA - 691 531. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WA No.2473/2019 -2- C.K. ABDUL REHIM & T.V. ANILKUMAR, JJ. ----------------------------------------------------- W.A. No. 2473 OF 2019 ------------------------------------------------------- Dated this the 17th day of December, 2019 J U D G M E N T Abdul Rehim, J. The petitioner in W
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