Kerala High Court
Lokanathan M vs State Of Kerala on 12 January, 2021
Crl.MC.5932/2020 1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
TUESDAY, THE 12TH DAY OF JANUARY 2021 / 22TH POUSHA, 1942
Crl.MC.No.5932 OF 2020(B)
AGAINST THE ORDER/JUDGMENT IN CRMP 2332/2020 DATED 04-12-2020 OF
JUDICIAL MAGISTRATE OF FIRST CLASS ,CHITTUR
CRIME NO.665/2020 OF Kozhinjampara Police Station , Palakkad
PETITIONER/S:
LOKANATHAN M
AGED 42 YEARS
S/O MUTHAYYA,BALAMURUKA NIVAS,ADOOR.P.O,
KANNAMKODU,ADOOR,PATHANAMTHITTA DISTRICT-691523.
BY ADVS.
SRI.MANU RAMACHANDRAN
SRI.M.KIRANLAL
SRI.R.RAJESH (VARKALA)
SRI.T.S.SARATH
SHRI.SAMEER M NAIR
RESPONDENT/S:
1 STATE OF KERALA
REPRESENTED BY PUBLIC PROSECUTOR,
HIGH COURT OF KERALA,ERNAKULAM-682031.
2 THE INSPECTOR OF POLICE,
POLICE STATION OF KOZHINJAMPARA,
PALAKKAD DISTRICT-678555.
3 THE STATE TAX OFFICER
SOUGHT TO BE IMPLEADED
OTHER PRESENT:
SPL.PP.(TAXES) C.E.UNNIKRISHNAN; PP T.R.RENJITH
THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON
12.01.2021, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Crl.MC.5932/2020 2
V.G.ARUN, J.
-----------------------------------------------
CRL.M.C.No. 5932 of 2020
-----------------------------------------------
Dated this the 12th day of January, 2021
ORDER
Petitioner is the 2nd accused in Crime No.665 of 2020 of
Kozhinjampara Police Station registered for offences under Sections
41(1)(d) and 102 Cr.P.C read with 34 of IPC. The allegation is that, at
about 3.15 a.m on 6.10.2020, silver ornaments weighing 11.120 kg
valued at around Rs.3,80,000/- was seized from a lorry bearing No.TN-
30-P-3208 and that, on questioning the driver of the lorry (3 rd
accused), it was revealed that the 3 rd accused was not in possession of
any bill or other document evidencing payment of tax for the
ornaments. That, on the same day, the petitioner and the 1st accused
were apprehended while sitting inside a car and on questioning, it was
admitted that they were waiting for the silver ornaments being
brought by the 3rd accused. Thereupon, the crime was registered, the
petitioner and the other accused arrested and the silver ornaments
seized.
2. Later, the petitioner approached the Judicial First Class
Magistrate Court, Chittoor seeking release of the silver ornaments
produced in Crime No.655 of 2020. While considering the application
for release, notice was issued to the State Tax Officer, SGST, Palakkad.
The said officer filed a report stating that the Taxes Department
intended to take action under Section 130 of the Central Goods and
Services Tax Act, 2017, as the silver was transported without
invoices/bills etc. It was requested not to release the silver, the
applicable tax, penalty etc. as mandated under the GST Act are paid.
Thereupon, the petitioner paid an amount of Rs.1,67,824/- and this
fact was reported by the State Tax Officer. Since no other offence was
made out against the petitioner, the jurisdictional court passed
Annexure A3 order giving interim custody of the silver ornaments to
the petitioner subject to certain conditions. This Crl.M.C is filed
aggrieved by condition No.3 in Annexure A3, directing the petitioner to
produce the silver ornaments as and when required and not to alienate
the same.
3. Sri.Manu Ramachandran, learned counsel for the petitioner
submitted that, the petitioner having complied with the requirements
under the GST Act, the jurisdictional court committed an illegality in
imposing condition No.3. It is submitted that, as the petitioner is doing
business in silver, he will have to necessarily sell the ornaments as
part of his business and hence, unless the condition is deleted, the
petitioner will be put to undue prejudice and loss.
4. The question involved being one related to evasion of tax and
consequential action under the GST Act, the Special Government
Pleader (Taxes) was requested to address the court.
Sri.C.E.Unnikrishnan, learned Special Government Pleader (Taxes),
submitted, on instructions, that the petitioner having remitted the
penalty and the fine in lieu of confiscation as mandated under Section
130(2) of the GST Act, the Taxes Department has no objection in the
silver being released.
5. Sri.T.R.Renjit, learned Public Prosecutor submitted that, since
the crime is pending, release of the silver shall be on sufficient security
and conditions.
6. The offences alleged against the accused are under Sections
41(1)(d) and 102 of Cr.P.C. The crime was registered on the accused
failing to produce bills or tax receipts with respect to the silver seized
from the lorry. After registration of the crime, the petitioner remitted
the penalty and fine imposed by the Taxes Department. Condition
Nos.1 and 2 in Annexure A3 are sufficient to safeguard the interest of
the investigating agency.
In the result, the Crl.M.C is allowed by deleting condition No.3 in
Annexure A3. It is made clear that the silver ornaments seized shall be
released only on the petitioner complying with condition Nos.1 and 2 in
Annexure A3.
Sd/-
V.G.ARUN, JUDGE
vgs
APPENDIX
PETITIONER'S/S EXHIBITS:
ANNEXURE A1 TRUE COPY OF THE FIR IN CRIME NO.665/2020
OF POLICE STATION,KOZHINJAMPARA,PALAKKAD
DISTRICT.
ANNEXURE A2 THE TRUE COPY OF THE SEIZURE MAHAZAR IN
ANN.A1 FIR
ANNEXURE A3 THE TRUE COPY OF THE ORDER DATED 04.12.2020
IN CRL.M.P.NO.2332/2020 ON THE FILES OF
JFMC,CHITTUR.
