Virat Metals And Engineering Corporation vs. Assistant State Tax Officer
Original PDF →IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUE AY, THE 06TH DAY OF AUGUST 2019 / 15TH SRAVANA, 1941 WP(C).No.21032 OF 2019(D) PETITIONER: VIRAT METALS AND ENGINEERING CORPORATION 40/3/6658, T D ROAD, ERNAKULAM DISTRICT-682 035, REPRESENTED BY ITS PARTNER, MILAPCHAND LAXMICHAND JAIN. BY ADVS. SRI.K.J.ABRAHAM SRI.NIKHIL JOHN RESPONDENTS: 1 ASSISTANT STATE TAX OFFICER STATE GST DEPARTMENT, INTELLIGENCE SQUAD NO. VI, MATTENCHERRY, CAMP AT KARUKUTTY, ERNAKULAM DISTRICT-683 576 2 SHRI.SANMATI ELECTRICALS. 1797-1798, SHOP NO. 16, THIRD FLOOR, BHAGIRATH PALACE, DELHI 110 006. 3 M/S. VRL LOGISTICS LTD. MARKET ROAD, OPP. ST. MARY'S CONVENT, ERNAKULAM DISTRICT-682 035 4 GOODS AND SERVICES TAX COUNCIL, 5TH FLOOR, TOWER II, JEEVAN BHARATI BUILDING, JANPATH ROAD, CANNUUGHT PALACE, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRPERSON. 5 GOVERNMENT OF INDIA, NEW DELHI, DEPARTMENT OF REVENUE, CENTRAL BOARD OF EXCISE AND CUSTOMS, NEW DELHI-110 001, REPRESENTED BY THE SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE.
WP(C).No.21032 OF 2019(D) 2 6 STATE OF KERALA, TAXES (B) DEPARTMENT, STATE GOODS AND SERVICES TAX DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001, REPRESENTED BY THE SECRETARY TO GOVERNMENT. OTHER PRESENT: SMT.THUSHARA JAMES- G.P, SRI.P.VIJAYAKUMAR - ASGI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.08.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.21032 OF 2019(D) 3 JUDGMENT Heard Sri.K.J.Abraham learned counsel for the petitioner, Smt.Thushara James learned Government Pleader as well as Sri.P.Vijayakumar learned ASGI appearing for respondents no.4 and 5. 2. The petitioner challenges Exts.P6 and P7 notices issued by the 1st respondent as illegal and without juri iction. Ext.P6 is an order of detention made under Section 129 (1) of CGST Act, 2017 and Ext.P7 is a notice issued under Section 129 (3) of the Act. The petitioner contends that the subject matter of Exts.P6 and P7 is fully compliant with all the requirements of the Act and the petitioner was not in a position to demonstrate within the time given by the authorities that E-Way Bill was also generated could be produced for inspection. Therefore, the proceedings now initiated through Exts.P6 and P7 are not warranted and legal.
The learned Government Pleader objects to the maintainability of the writ petition. Firstly, she contends that from the very admission made by the petitioner there is an omission or illegality in transportation of goods. The omission is that admittedly at the time of inspection or detention of goods the
WP(C).No.21032 OF 2019(D) 4 transporter could not produce all the documents required for establishing that the goods are under valid transit. The detention order cannot and could not be treated as final, for according to her submission section 129 deals with and provides for not only detention but also for release of goods, subject to the petitioner complying with the mandate of Section 129 of the Act. According to her, the petitioner if insists for the release of goods, the petitioner can furnish bank guarantee for the tax and penalty amount demanded through Ext.P7 and the authority does not have difficulty in releasing the detained goods forthwith.
By way of reply, Sri.Abraham.K.J submits that the petitioner since is confident that the transit of goods was strictly in accordance with the requirements of the law, the detention of goods is not warranted, the petitioner has already deposited Rs.12,555/- towards tax incidence and the other component namely penalty may be deposited in cash.
I have considered the rival submissions and perused the record. The writ petition is disposed of by this order.
The issues raised are at preliminary stage and this Court is not convinced to entertain the writ petition and adjudicate upon merits at this stage. To conform to the scheme under the Act, the writ petition is disposed of by this order.
WP(C).No.21032 OF 2019(D) 5 As the petitioner submitted that he has already deposited Rs.12,555/- towards tax incidence and the other component namely penalty is permitted be deposited in cash of Rs.12,555/- and upon producing proof of deposit, the goods are released forthwith. The deposit of amount by petitioner is without prejudice to the rights and contentions he has in this behalf. All contentions raised in the writ petition are left open for consideration at appropriate stage in a properly initiated proceeding. S.V.BHATTI JUDGE ska
WP(C).No.21032 OF 2019(D) 6 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF THE PURCHASE INVOICE NO. I-336 DATED 13.07.2019. EXHIBIT P2OF THE E-WAY BILL NO. 7410 8215 7463 GENERATED ON 14.07.2019. EXHIBIT P3OF THE GST MOV-01 DATED 19.07.2019. EXHIBIT P4OF THE GST MOV-02 DATED 19.07.2019 . EXHIBIT P5OF GST MOV-04 OR NO. 05/GST/19-20 DATED 22.07.2019. EXHIBIT P6OF THE GST MOV-06 OR NO. GST/05/ 19-20 DATED 22.07.2019. EXHIBIT P7OF THE GST MOV-07 OR. NO. 05/GST 19-20 DATED 22.07.2019.
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.