Harshit Kumar Mathur vs. The Commissioner Of Commercial Taxes - Karnataka High Court, 24 June 2022

Cause title — parties, addresses and appearances

- 1 - IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JUNE 2022 BEFORE THE HON’BLE MR. JUSTICE M.I.ARUN WRIT PETITION No.9629 OF 2022 (T-RES) BETWEEN: HARSHIT KUMAR MATHUR PROPRIETOR, AGED 22 YEARS M/S. MATHUR AND COMPANY YDR 26875, KN SUBRAMANYA COMPLEX ANUGRAHA BUILDING, KAVARI VILLAGE, YADUR POST, SHIVAMOGGA DISTRICT (GSTIN 29ESKPM3041R1ZY) ... PETITIONER (BY SRI.HARISH NARASAPPA, SENIOR ADV. FOR SRI. Y. C. SHIVAKUMAR, ADV.) AND: 1 . THE COMMISSIONER OF COMMERCIAL TAXES KARNATAKA, KALIDASA ROAD, GANDHINAGAR BENGALURU-560 009 2 . THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-6, COMMERCIAL TAXES DEPARTMENT 2ND FLOOR, TTMC, BMTC COMPLEX DOUBLE ROAD, SHANTINAGAR BENGALURU-560 027 3 . THE COMMERCIAL TAX OFFICER (ENFORCEMENT)-3 OFFICE OF THE ACCT (ENFORCEMENT) VANIJYA THERIGE SANKIRNA SIDDARAMESHWARA LAYOUT TUMKUR-572 102 ... RESPONDENTS (BY SRI.K. HEMA KUMAR, AGA FOR R1 TO R3) - 2 - THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE R3 TO IMPLEMENT THE ORDER OF THE R2, VIDE ORDER DATED 30.03.2022 ANNEXURE-A WITHIN A CERTAIN TIME FRAME AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

The petitioner is a proprietorship concern registered under the Karnataka Goods and Services Act, 2017 and Central Goods and Services Act, 2017 and engaged in buying and supplying agricultural commodities. One of its consignment containing areca nut while in transit was detained on the ground that it was not carrying e-way Bill and subsequently an order has been passed under Section 130 of the State Goods and Services Tax Act, 2017 confiscating goods and conveyance. The same was challenged by the petitioner before the First Appellate Authority and the same has been partly allowed and it has been held that the petitioner is not liable under the provisions of Section 130 of the State Goods and Services Tax Act, 2017 and he is liable under the provisions of Section 129 (1) (a) of the GST Acts, 2017 and it has been ordered that the applicable tax and penalty be re-computed and that the seized goods be released. In the meanwhile, the petitioner had deposited 25% of the amount demanded as per the orders passed under Section 130 of the GST Acts, 2017 and provided bank guarantee in respect of the balance amount.

Inspite of the order passed by the First Appellate Authority, the goods and conveyance have not been released. Aggrieved by the same, the instant writ petition is filed.

Learned AGA upon instructions submits that the State has preferred a writ petition (W.P.No.11783/2022) challenging the order of the First Appellate Authority and on the said ground submits that the goods and the conveyance cannot be released and prays for dismissal of the writ petition.

Admittedly, an order has been passed in favour of the assessee by the First Appellate Authority and the same is not stayed, under the circumstances, the authorities cannot refuse release of the commodities. Further, the petitioner has deposited 25% of the amount levied on him as per the proceedings under Section 130 of the GST Acts, 2017 and has given bank guarantee for remaining 75%. The said fact is not disputed by the respondents. The petitioner is willing to keep the said deposit with the authorities and also the bank guarantee alive till resolution of the dispute which secures the interest of the State. Hence, the following:- ORDER (i) The respondent authorities are directed to release the goods and conveyance belonging to the petitioner forthwith upon the receipt of certified copy of this order. (ii) The petitioner shall keep the bank guarantee for 75% of the amount valid till disposal of W.P.No.11783/2022 and the deposit of 25% shall also remain with the respondent authorities till disposal of the said writ petition. (iii) The writ petition is disposed of accordingly. JUDGE MH/-