Subramanian Velayudhan Achary vs. The Assistant State Tax Officer

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WP(C)/23756/2019HC KeralaGSTCNR KLHC01061422201917 October 2019Bench: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR5 pages

AI SummaryDismissed

Facts

The petitioner challenged notices issued by the 1st respondent for adjudicating a penalty related to a detained consignment, which had been provisionally released under a prior court order. During the pendency of this writ petition, the 2nd respondent completed the penalty adjudication, leading to a confirmed penalty order that the petitioner challenged in a separate writ petition.

Held

The High Court held that the present writ petition, which was directed against the initial adjudication steps by the 1st respondent, had become infructuous. This was because the 1st respondent's notices were not pursued, and the penalty adjudication was completed by the 2nd respondent, rendering the original challenge moot.

Key Issues

Whether the writ petition challenging the initial adjudication notices remained maintainable after the penalty adjudication was completed by a different authority and subsequently challenged in a separate proceeding.

Sections Cited

Section 129(1) of the KSGST Act, Section 129(3) of the KSGST Act, Section 129 of the GST Act, Rule 138(14)(D) of the KSGST Rules, 2017

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 17TH DAY OF OCTOBER 2019 / 25TH ASWINA, 1941 WP(C).No.23756 OF 2019(T) PETITIONER/S: SUBRAMANIAN VELAYUDHAN ACHARY PROPRIETOR, SUBRAMANIA INDUSTRIES, ARYANAGAR, ARYASALA, THIRUVANANTHAPURAM - 695 009. BY ADV. SRI.V.DEVANANDA NARASIMHAM RESPONDENT/S: 1 THE ASSISTANT STATE TAX OFFICER, SQUAD NO.1, (PREVIOUSLY DESIGNATED AS INTELLIGENCE INSPECTOR), KERALA STATE GOODS AND SERVICE TAXES, THIRUVANANTHAPURAM - 695 033. 2 THE STATE TAX OFFICER, SQUAD NO.1, (PREVIOUSLY DESIGNATED AS INTELLIGENCE INSPECTOR), KERALA STATE GOODS AND SERVICE TAXES, THIRUVANANTHAPURAM - 695 033. 3 THE COMMISSIONER OF STATE GSTD, KARAMANA-P.O., KILLIPALAM THIRUVANANTHAPURAM - 695 002. 4 THE CENTRAL BOARD OF EXCISE AND CUSTOMS, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI - 110 001. 5 E. SIVAKUMAR DRIVER TN-15B-7516, SRI. VIGNESHWARA TRANSPORT, HOSUR, POLVANKUPPAM, KODAPPALLY POST, PANDURUTHY, CUDDALORE - 608 501. R1-3 BY GOVERNMENT PLEADER SMT.THUSHARA JAMES R4 BY SREELAL N. WARRIER, SC, CENTRAL BOARD OF EXCISE &AMP; CUSTOMS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.10.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.23756 OF 2019(T) 2

JUDGMENT This writ petition has been filed by the petitioner essentially aggrieved by the notices issued to him by the 1st respondent pursuant to Ext.P9 judgment of this Court, which directed the release of the consignment that was detained at the instance of the respondent. It would appear that during the pendency of this writ petition the 2nd respondent, who was the authority entrusted with the task of completing the enquiry and affording a fair and reasonable opportunity to the petitioner and thereafter adjudicating the matter with regard to penalty, issued a notice to the petitioner and the proceedings culminated in the confirmation of the penalty against the petitioner. The said order of the 2nd respondent was subsequently challenged by the petitioner through W.P.(C) No.27385/2019 which was disposed on 16.10.2019 by relegating the petitioner to his alternate remedy of preferring an appeal against the penalty order. In view of the subsequent developments as noticed above, I am of the view that the present writ petition which is essentially against the steps taken by the 1st respondent to adjudicate the issue has to be closed as infructuous since it is not in dispute that both the notices issued by the 1st respondent were not pursued by the respondents and it was the 2nd respondent who completed the adjudication proceedings with regard to the penalty, as directed by this Court in the earlier proceedings. The writ petition is, therefore, closed as above. A.K.JAYASANKARAN NAMBIAR

JUDGE WP(C).No.23756 OF 2019(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF TAX INVOICE DIN 19201107 DATED 06.08.2019 ISSUED BY THE CONSIGNOR, M/S. OJUS POWER AND TECHNOLOGIES PVT LTD, HOSUR, TO THE PETITIONER SPECIFYING SERIAL NO.DG1904291022 OF 25 KVA-DG SET AND ADDRESS OF THE CONSIGNEE AS BATA, KARAMANA. EXHIBIT P2OF E-WAY BILL NO.581125540300 DATED 06.08.2019 HAVING VALIDITY UP TO 13.08.19 GENERATED BY CONSIGNOR, M/S OJUS POWER AND TECHNOLOGIES PVT LTD, AGAINST EXT. P1 TAX INVOICE. EXHIBIT P3OF SUBSIDIARY TAX INVOICE NO.168 DATED 08.08.19 GENERATED BY THE PETITIONER CORRESPONDING TO EXT. P1 PRIMARY TAX INVOICE TO M/S. BATA INDIA LTD, KARAMANA AGAINST THEIR PURCHASE ORDER DATED 22.05.2019. EXHIBIT P4OF GST MOV-02 ORDER FOR PHYSICAL VERIFICATION OF CONVEYANCE, GOODS AND DOCUMENTS DATED 08.08.2019 ISSUED BY THE 1ST RESPONDENT AT 10 PM TO 5TH RESPONDENT ON ACCOUNT OF THE PETITIONER. EXHIBIT P4 AOF GST-MOV-04 PHYSICAL VERIFICATION REPORT DATED 08.08.2019 ISSUED BY THE RESPONDENT AT 10 PM TO 5TH RESPONDENT ON ACCOUNT OF THE PETITIONER. EXHIBIT P4 BOF GST MOV-06 ORDER OF DEFINITION DATED 08.08.19 ISSUED U/S 129(1) OF THE KSGST ACT BY 1ST RESPONDENT AT 10 PM TO 5TH RESPONDENT ON ACCOUNT OF THE PETITIONER. EXHIBIT P4 COF GST MOV-07 NOTICE SPECIFYING TAX AND PENALTY DATED 08.08.19 ISSUED U/S. 129(3) OF THE KSGST ACT BY 1ST RESPONDENT AT 10 PM TO 5TH RESPONDENT ON ACCOUNT OF THE PETITIONER. EXHIBIT P5OF THE REPRESENTATION DATED 13.08.2019 SUBMITTED BEFORE 3RD RESPONDENT BY THE PETITIONER DULY ACKNOWLEDGED WITH SIGN AND SEAL.

WP(C).No.23756 OF 2019(T) 4 EXHIBIT P6OF THE REPLY LETTER DATED 09.08.19 FURNISHED AGAINST EXT.P4 SERIES ORDERS/NOTICES, ACKNOWLEDGED BY 1ST RESPONDENT ON 16.08.2019. EXHIBIT P7OF LETTER DATED 17.08.19 REQUESTING TO RECONSIDER ALL ALLEGATIONS AFRESH BASED ON EXT.P1, EXT.P2 AND NOTIFICATION NO.3/2018. EXHIBIT P8OF THE NOTIFICATION NO.3/2018- STATE TAX DATED 14.05.18 ISSUED BY THE 3RD RESPONDENT UNDER RULE 138(14) (D) OF THE KSGST RULES, 2017 PUBLISHED IN THE KERALA GAZETTE ON 07.08. 18. EXHIBIT P9OF THE JUDGMENT IN WP(C) NO.22656 OF 2019 DATED 20.08.19 AGAINST EXT.P4 SERIES ORDER/NOTICES PASSED BY THIS HON'BLE COURT. EXHIBIT P10OF BANK GUARANTEE FOR RS.97,628/- DATED 23.08.19 VALID UP TO 06.10.19 ISSUED BY THE CATHOLIC SYRIAN BANK LTD, TRIVANDRUM ACKNOWLEDGED BY 1ST RESPONDENT AT 11.55 AM ON 24.08. 19. EXHIBIT P10 AOF FORM GST MOV-08 BOND FURNISHED FOR PROVISIONAL RELEASE OF GOODS AND CONVEYANCE DATED 24.08.19 ACKNOWLEDGED BY THE 1ST RESPONDENT AT 11-55 AM. EXHIBIT P11OF FORM GST MOV-08 BOND FURNISHED FOR PROVISIONAL RELEASE OF GOODS AND CONVEYANCE DATED 24.08.2019 ACKNOWLEDGED BY THE 1ST RESPONDENT AT 11.55 AM. EXHIBIT P12OF FORM GST MOV-05 RELEASE ORDER DATED 24.08.19 ISSUED BY 1ST RESPONDENT TO PETITIONER AT 01-28 PM. EXHIBIT P13OF COVERING APPLICATION DATED 23.08.19 SENT BY REGISTERED POST TO 1ST AND 2ND RESPONDENTS. EXHIBIT P14OF REPRESENTATION DATED 24.08.19 SUBMITTED BEFORE THE 3RD RESPONDENT POINTING OUT NON-ACCEPTANCE OF EXT.P13 LETTER BY 1ST AND 2ND RESPONDENTS.

WP(C).No.23756 OF 2019(T) 5 EXHIBIT P15OF NOTICE DATED 27.08.19 ISSUED BY 1ST RESPONDENT FOR CONDUCTING ENQUIRY IN THE CASE OF DETENTION OF GOODS AND VEHICLE ON 08.0819. EXHIBIT P16OF THE PENELTY ORDER CONVERTING SECURITY DEPOSIT INTO PENALTY DATED 05-10- 2019 PASSED U/S 129 OF THE GST ACT BY 2ND RESPONDENT. EXHIBIT P17OF REQUEST LETTER DEMANDING ENCASHMENT OF BANK GUARANTEE DATED 05-10-19 ISSUED TO THE CATHOLIC SYRIAN BANK, KOWDIAR BRANCH, TRIVANDRUM BY 2ND RESPONDENT.

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.