Allowed

Sheetal Jain, v. the State Tax Officer

Kerala HC7 Oct 2022WP(C)/6905/2022

Case brief

AI extract

What is this about?

Petitioner challenged detention of goods under Section 130, citing lack of Appellate Tribunal. Court allowed provisional release upon remitting the disputed tax amount, conditional on tribunal's future jurisdiction.

What did the court decide?

Goods released provisionally upon remittance of Rs 75,20,478/- to the 1st respondent, subject to Appellate Tribunal's jurisdiction once constituted.

Sheetal Jain, Vs the State Tax Officer — GST and Indirect Tax | Kerala HC (2022)

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WP(C) NO. 6905 OF 2022

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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 GOPINATH P.

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FRIDAY, THE 7TH DAY OF OCTOBER 2022 / 15TH ASWINA, 1944
WP(C) NO. 6905 OF 2022

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PETITIONER/S:

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SHEETAL JAIN,
AGED 35 YEARS
SALES REPRESENTATIVE,
M/S. SRI SITAL JEWELLERS, 13/35-5, SRI. RAJENDRAN
COMPLEX,
MANDAPALA STREET,
NELLORE, ANDHRA PRADESH 524 001.
BY ADVS.
HARISANKAR V. MENON
MEERA V.MENON

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RESPONDENT/S:

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1THE STATE TAX OFFICER,
(INTELLIGENCE),
MOBILE SQUAD NO. VI, SGST DEPARTMENT, NEDUMANGAD,
THIRUVANANTHAPURAM 695 541.

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2THE JOINT COMMISSIONER OF STATE TAX ,
(APPEALS),
STATE GST DEPARTMENT TAX TOWERS,
KILLIPPALAM, KARAMANA, THIRUVANANTHAPURAM 695002.
3THE COMMISSIONER OF STATE TAX
STATE GST DEPARTMENT, TAX TOWERS, KILLIPPALAM,
KARAMANA, THIRUVANANTHAPURAM 695 002.

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4 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM 695 001.

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5 UNION OF INDIA, REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK, NEW DELHI 110 001.

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BY ADV JUSTUS S., CGC

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OTHER PRESENT:

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WP(C) NO. 6905 OF 2022

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ADV. JASMIN M M (GP)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 6905 OF 2022

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JUDGMENT

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Petitioner has approached this Court being aggrieved by Ext.P12 order issued under Section 130 of the CGST/SGST Acts and Ext.P15 appellate order confirming Ext.P12 order. The grievance of the petitioner is that in the absence of the Appellate Tribunal, the petitioner is unable to avail the remedy of appeal to the Appellate Tribunal under Section 112 of the CGST/SGST Acts.

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The learned counsel for the petitioner states that the goods of the petitioner, which are now in custody of the respondent department, may be directed to be released to the petitioner provisionally. It is submitted that the petitioner will provide sufficient guarantee to ensure that the revenue of the state is not affected in any manner by any interim direction to release the goods belonging to the petitioner.

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The learned Government Pleader vehemently opposes the grant of interim relief sought for by the petitioner. It is submitted that the scheme surrounding the provisions of Section 130 of the CGST/SGST Acts is pointed out to show that a proceeding under Section 130 postulates that there was clear attempt to evade payment of tax and that a reading of the orders passed by the adjudicating authority (Ext.P12) and the order of the Appellate Authority (Ext.P15) will show that the proceedings were legal and proper. It is submitted that the petitioner is not entitled to any interim relief on production of bank guarantee as the same is not within the scheme of Section 130 of the CGST/SGST Acts.

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Having heard the learned counsel for the petitioner and the

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WP(C) NO. 6905 OF 2022

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learned counsel appearing for the respondents and on perusal of Ext.P12 order of the original authority as well as Ext.P15 order of the Appellate Authority, I am of the view that since Ext.P12 order permits the petitioner to have the goods released on payment of a total sum of Rs.75,20,478/-, and considering the fact that the goods in question are stated to be gold ornaments, the goods in question can be directed to be released to the petitioner on the petitioner remitting a sum of Rs.75,20,478/- (Rupees Seventy five lakhs twenty thousand four hundred and seventy eight only) before the 1^st respondent. The payment shall be treated as provisional and shall always be subject to any relief that the petitioner may obtain from the Appellate Tribunal as and when it is constituted. I make it clear that once the Appellate Tribunal is constituted, it will be open to the petitioner to agitate the matter before the Appellate Tribunal.

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The writ petition is disposed of as above.

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Sd/-

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GOPINATH P. JUDGE

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okb/

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//True copy// P.S. to Judge

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WP(C) NO. 6905 OF 2022

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APPENDIX OF WP(C) 6905/2022

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PETITIONER EXHIBITS
Exhibit P1COPY OF REGISTRATION CERTIFICATE OF THE
PETITIONER DTD. 21.09.2017.
Exhibit P2COPY OF DECLARATION AUTHORITY LETTER ISSUED
BY SRI SITAL JEWELLERS DTD 24.11.2020.
Exhibit P3COPY OF DECLARATION AUTHORITY LETTER ISSUED
BY SRI SITAL JEWELLERS DTD 24.11.2020.
Exhibit P4COPY OF DECLARATION AUTHORITY LETTER ISSUED
BY SRI SITAL JEWELLERS DTD 24.11.2020.
Exhibit P5COPY OF DECLARATION AUTHORITY LETTER ISSUED
BY SRI SITAL JEWELLERS DTD 24.11.2020.
Exhibit P6COPY OF TRAIN TICKET OF THE PETITIONER FORM
NELLORE TO TRIVANDRUM IN TRANSACTION ID NO.
1000002458014272. DTD. 24.11.2020.
Exhibit P7COPY OF TRAIN TICKET OF THE PETITIONER FROM
TRIVANDRUM TO NELLOORE IN PNR NO. 430667170
DTD. 29.11.2020.
Exhibit P8COPY OF SHORT VISIT REGISTRATION CERTIFICATE
OF THE PETITIONER. DTD. 22.11.2020.
Exhibit P9COPY OF NOTICE ISSUED BY THE IST RESPONDENT
DTD. 01.12.2020.
Exhibit P10COPY OF APPLICATION WITH AN AFFIDAVIT FILED
BY THE PETITIONER BEFORE THE IST RESPONDENT
DTD. 01.12.2020.
Exhibit P11COPY OF REPLY FILED BY THE PETITIONER BEFORE
THE IST RESPONDENT DTD 15.12.2020.
Exhibit P12COPY OF ORDER ISSUED BY THE IST RESPONDENT
DTD. 31.12.2020.
Exhibit P13COPY OF JUDGMENT IN WPC NO. 1417/2021 OF THIS
HONBLE COURT DTD. 19.01.2020.
Exhibit P14COPY OF JUDGMENT IN W.A/ NO. 489/2021 OF THIS
HONBLE COURT DTD. 16.03.2021.
Exhibit P15COPY OF ORDER IN GSTA NO. 18/21 ISSUED BY THE
2ND RESPONDENT DTD. 20.01.2022.
Exhibit P16COPY OF JUDGMENT IN WPC NO. 21907/2020 OF
THIS HONBLE COURT DTD. 06.11.2020.

Sheetal Jain, v. the State Tax Officer

Case brief

What is this about?

What did the court decide?

Sheetal Jain, v. the State Tax Officer

Case brief

What is this about?

What did the court decide?

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