Paxal Chemical Industry (P) LTD. vs. Asst. State Tax Officer(Intelligence)
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1 WP(C).No.7980 OF 2020 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL MONDAY, THE 16TH DAY OF MARCH 2020 / 26TH PHALGUNA, 1941 WP(C).No.7980 OF 2020(V) PETITIONER/S: PAXAL CHEMICAL INDUSTRY (P) LTD., REPRESENTED BY ITS MANAGER, SUNIL KOTHARI, AGED 51 YEARS, NO.6, GROUND FLOOR, RAILWAY PARALLEL ROAD, NEHRU NAGAR, BANGALORE - 560 020. BY ADVS. SRI.T.V.GEORGE SRI.JIMMY GEORGE (THADATHIL) RESPONDENT/S: 1 ASST. STATE TAX OFFICER(INTELLIGENCE), STATE GOODS AND SERVICES TAX DEPARTMENT, SQUAD II, CHENGANNUR - 680 121. 2 COMMISSIONER, STATE GOODS AND SERVICES TAX DEPARTMENT, 9TH FLOOR, TAX TOWERS, KARAMANA P.O., KILLIPPALAM, THIRUVANANTHAPURAM, PIN - 695002. 3 NEW INDIA CHEMICALS, HOSPITAL ROAD, CHAMBAKKADA, KOLLAM, KERALA - 691 001. OTHER PRESENT: GP DR THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
2 WP(C).No.7980 OF 2020 JUDGMENT Dated this the 16th day of March 2020 The present Writ Petition is directed against the action initiated by the respondents detaining the consignments invoices covered by Ext.P1 and P2 and detained by Ext.P8 and P9. 2. The learned counsel on the behalf of petitioner submits that the petitioner being a private limited company, established in the year 1984 had been working without any legal hassles. On the basis of the purchase order placed by the 3rd respondent at Kollam in Kerala, the petitioner being distributor of Godrej Industries, placed orders for certain goods to Godrej Industries. For the aforementioned purpose, the service of Kerala Roadways (KRS), a transporter, was engaged to collect the goods from Valia, Bharuch District in Gujarat.
The aforementioned transporter was entrusted with two consignments and in this regard, two tax invoices were raised by the Godrej Industries on the same day ie on 17th February, 2020. The tax invoices envisaged
3 WP(C).No.7980 OF 2020 the delivery of consignment to be at Kollam while the petitioner with Bangalore Address was named as consignee. The invoices of Godrej Industries revealed the fact that the delivery was to be at Kollam by Kerala Road Ways. The documents were delivered to the transporter's office in Bangalore. Unfortunately, the driver of the truck by negligence failed to carry the said invoices showing the transaction between the petitioner and the 3rd respondent. On 24.02.2020, the vehicle was intercepted and found that the documents tendered by the driver of the transportation of the consignments from Gujarat to Kollam were defective, resulting into detention order Ext.P8 and 9. He submits this as a human error, as E-Way bill reflected entry of Kollam. Therefore the detention as per Sec.129 is not sustainable.
Dr. Thushara James, the learned government pleader submits that opening line of the Sec.129 of the Goods and Services Tax Act that in case of any violation, goods are liable to be detained.
Having heard, I am of the view that this court would not be an appropriate authority to adjudicate the 4 WP(C).No.7980 OF 2020 controversy to either of the human error or intentional or willful. It would be the domain of the adjudicating authority. For the time being, the goods detained can be released, subject to the compliance of conditions referred to in Sec.129(1) of the Act and Rule 43 of 2017. In case the petitioner furnishes the bank guarantee along with other charges, as per the provisions of Sec.129, on deposit of the requisite Bank Guarantee, the goods and the vehicle detained are ordered to be released; subject to the outcome of the controversy by adjudicating authority. It is made clear that the respondents will not en-cash the bank guarantee till the controversy involved is adjudicated by the concerned authority. AMIT RAWAL JUDGE SM
5 WP(C).No.7980 OF 2020 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF TAX INVOICE NO.14980 ISSUED BY THE CONSIGNER-3RD RESPONDENT DTD 17/2/2020. EXHIBIT P2OF TAX INVOICE NO.14979 ISSUED BY THE CONSIGNER - 3RD RESPONDENT DTD 17/2/2020. EXHIBIT P3OF E-WAY BILL NO.671179847125 GENERATED FOR THE CONSIGNMENT WITH TAX INVOICE NO.VA19000000014980. EXHIBIT P4OF E-WAY BILL NO.601179846457 GENERATED FOR THE CONSIGNMENT WITH TAX INVOICE NO.VA 19000000014979. EXHIBIT P5OF E-WAY BILLED INVOICE NO.9874 DTD. 18/02/2020 RAISED BY THE PETITIONER IN THE NAME OF THE 3RD RESPONDENT. EXHIBIT P6OF THE E-WAY BILL WITH NO.161203731387 DTD. 18/2/2020. EXHIBIT P7OF THE DETAILED SALES STATEMENT IN GST.R-1 FOR THE MONTH OF FEBRUARY 2020 IN WHICH THE SALES TO THE 3RD RESPONDENT. EXHIBIT P8OF ORDER DTD. 24/02/20 FOR PHYSICAL VERIFICATION OF THE CONSIGNEE, GOODS AND DOCUMENTS ISSUED BY THE 1ST RESPONDENT. EXHIBIT P9OF THE STATEMENT OF THE DRIVER IN CHARGE DTD 24/02/2020. EXHIBIT P10OF THE REPRESENTATION DTD. 25/2/2020 BY THE PETITIONER BEFORE THE 1ST 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.