Disposed

Husky Injection Molding Systems (India) Private Limited v. the Commissioner of State Tax

Kerala HC5 Feb 2019WA/210/2019

Case brief

AI extract

What is this about?

The Division Bench upheld the release of goods and vehicles upon furnishing a Bank Guarantee and simple bond under Rule 141 of the CGST Rules. The Court held that security does not constitute a failure to remit tax or penalty, thus precluding Section 130 confiscation proceedings.

What did the court decide?

Goods and vehicle released expeditiously upon furnishing a Bank Guarantee under Rule 141 of the CGST Rules, 2017, and a simple bond.

Husky Injection Molding Systems (India) Private Limited… — GST and Indirect Tax | Kerala HC (2019)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

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THE HONOURABLE MR. JUSTICE ASHOK MENON

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TUESDAY ,THE 05TH DAY OF FEBRUARY 2019 / 16TH MAGHA, 1940 WA.No. 210 of 2019

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AGAINST THE ORDER/JUDGMENT IN WP(C) 41535/2018 of HIGHCOURT APPELLANT:/PETITIONER

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HUSKY INJECTION MOLDING SYSTEMS(INDIA) PRIVATE LIMITED

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CHENNAI,HAVING REGISTERED OFFICE AT PLOT NO. P47, 8TH AVENUE, DOMESTIC TRAFFIC AREA, MAHINDRA WORLD CITY, NAHAM SUB POST, ANJUR VILLAGE, CHENGALPET TALUK, KANCHIPURAM DISTRICT, TAMIL NADU, PIN 603 004 REP.BY MR. VALLIAPPA NAGARAJAN, MANAGER LOGISTICS AND TRADE COMPLIANCE, AGED 56 YRS. S/O. RM VV VALIAPPAN

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BY ADVS.

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SRI.RAJESH NAIR SRI.JOSEPH PRABAKAR

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RESPONDENTS/RESPONDENTS:

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1 THE COMMISSIONER OF STATE TAX KERALA GST DEPARTMENT

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TAX TOWER, KARAMANA THIRUVANANTHAPURAM 695002

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2 ASST.COMMISSIONER (INT) PALAKKAD, KERALA GST DEPARTMENT PALAKKAD 678 001

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3 DEPUTY COMMISSIONER OF STATE TAX, PALAKKAD 678001

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4 ASST. STATE TAX OFFICER SQUAD NO.1 KERALA GST DEPARTMENT PALAKKAD 678 001

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OTHER PRESENT:

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SR GP SRI V.K.SHAMSUDHEEN FOR RESPONDENTS

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THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 05.02.2019, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:

W.A 210/2019

J U D G M E N T

Vinod Chandran, J

Sri.Joseph Prabhakar, who appears for the

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appellant, would submit that the issue insofar as

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release of goods and vehicle by way of Bank Guarantee is covered by a judgment of this Division Bench itself, produced at Annexure-A1. However, the

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learned Single Judge, on the submission of the learned Government Pleader, had directed that,for remitting the amount temporary registration will be permitted. However, the appellant is not ready to make remittance of money as such, but undertakes to furnish Bank Guarantee.

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Incidentally, learned Counsel

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Sri.Joseph Prabhakar also raise a contention on the

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basis of Section 130 of the Kerala Goods and

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Services Tax Act, 2017 (“Act” for short). Whether

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W.A 210/2019

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the failure to remit tax and penalty as provided

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under Section 129 of the Act, would lead to confiscation of goods under the provisions of Section 130. We are afraid that the time for raising such a contention has not arisen, since as of now the Department has not proceeded under Section 130. We gave Sri.Joseph Prabhakar the choice to withdraw the Writ Petition and challenge the Section 130 proceedings, when it is taken up or to furnish Bank Guarantee. The learned Counsel would then submit that; let there be an interim order granting release of the goods on furnishing of Bank Guarantee and the larger issue could be considered in the Writ Appeal or the Writ Petition itself. However, we are afraid, such course would not be commendable especially when a Bank Guarantee is given, eventually on final orders being passed either the Bank Guarantee would be released or

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W.A 210/2019

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enforced by the Department. In either case, there

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does not arise a failure to remit tax and penalty under Section 129 and that would not lead to a

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proceeding under Section 130. In such

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circumstance, we are not inclined to keep the matter pending. We, however, make it clear that on furnishing the Bank Guarantee for tax and penalty as provided under Rule 141 of the Central Goods and Services Tax Rules, 2017, and simple bond without sureties for the value of the goods, the goods and the vehicle shall be released expeditiously. Writ Appeal disposed of.

Sd/-

K.VINOD CHANDRAN

JUDGE

Sd/-

ASHOK MENON

JUDGE

W.A 210/2019

APPENDIX

APPELLANT'S ANNEXURES

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ANNEXURE-A1 COPY OF THE JUDGMENT PASSED BY THIS COURT IN WRIT APPEAL NO.1640/2018 DATED 31.7.2018. ANNEXURE-A2 COPY OF THE JUDGMENT DATED 14.12.2018 PASSED IN WP(C) NO.40801/2018 BY THE LEARNED SINGLE BENCH OF THIS COURT.

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Husky Injection Molding Systems (India) Private Limited v. the Commissioner of State Tax

Case brief

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Husky Injection Molding Systems (India) Private Limited v. the Commissioner of State Tax

Case brief

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