Kerala High Court
M/S S.P. Traders vs The Assistant State Tax Officer on 22 August, 2022
WP(C) No.25135/2022 1/4
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
Monday, the 22nd day of August 2022 / 31st Sravana, 1944
WP(C) NO. 25135 OF 2022
PETITIONER:
M/S S.P. TRADERS AGED 44 YEARS D.NO.56/177/6-A, SULTHANPET, MANGALAM
ROAD, TIRUPUR, TAMILNADU, REPRESENTED BY ITS PARTNER ANPU, PIN -
641663
RESPONDENTS:
1. THE ASSISTANT STATE TAX OFFICER SURVEILLANCE,SQUAD, STATE GST
DEPARTMENT, VAZHIKKADAVU, MALAPPURAM, PIN - 679505
2. THE STATE TAX OFFICER SURVEILLANCE SQUAD, STATE GST DEPARTMENT,
VAZHIKKADAVU, MALAPPURAM., PIN - 679505
3. THE DEPUTY COMMISSIONER(INT) STATE GST DEPARTMENT, VAZHIKKADAVU,
MALAPPURAM, PIN - 679505
Writ petition (civil) praying inter alia that in the circumstances
stated in the affidavit filed along with the WP(C) the High Court be
pleased to direct the lst respondent to release the goods with vehicle
detained pursuant to Exhibit - P7 order and stay further proceedings
pursuant to Exhibit - P8 notice without insisting for the payment of
amount demanded, pending disposal of the Writ petition in the interest of
justice.
This petition coming on for orders upon perusing the petition and
the affidavit filed in support of WP(C) and upon hearing the arguments of
SRI.P.N.DAMODARAN NAMBOODIRI, Advocate for the petitioner, the court
passed the following:
WP(C) No.25135/2022 2/4
GOPINATH P., J.
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W.P (C) Nos. 25135 & 25509 OF 2022
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DATED THIS THE 22nd DAY OF AUGUST, 2022
ORDER
The petitioner is aggrieved by Ext.P13 order issued under the provisions of
sub-section (3) of Section 129 imposing on the petitioner a penalty of
Rs.3,15,000/-. The petitioner was transporting goods from Tiruppur to Kerala. In
the invoice accompanying the goods, the tax paid was shown to be under CGST &
SGST, whereas it should have been shown as tax paid towards IGST. However, in
the E-way bill accompanying the goods the tax paid was correctly shown as paid
towards IGST. If the petitioner pays tax payable as IGST as CGST/SGST, there will
be loss of revenue as far as the State of Kerala is concerned. This was the reason for
initiating proceedings under Section 129. However, it cannot be lost sight of that in
the E-way bill accompanying the goods, the tax paid was correctly shown as IGST.
The learned counsel appearing for the petitioner states that the mistake has been
corrected while issuing credit note/debit note and in the monthly return filed for
the month of July 2022, the amount paid has been correctly shown as IGST.
2. Having regard to the above facts and having heard the learned Senior
Government Pleader also, there will be an interim order directing the 1 st
respondent to verify monthly returns filed by the petitioner for the month of July
2022 and determine whether the amount in question was correctly shown as IGST
instead of CGST/SGST. If the officer finds that the amount has been correctly
shown as IGST in the monthly returns filed for the month of July 2022,
notwithstanding the issuance of Ext.P13 order, the officer shall consider whether
WP(C) No.25135/2022 3/4
the mistake committed by the petitioner can be penalized by imposing a
minor penalty. The authorised representative of petitioner shall mark
appearance before the 1st respondent at 11 a.m on 24-08-2022 for the above
purpose. Let orders be passed by the 1st respondent as directed above on or
before 25-08-2022. The petitioner shall produce a copy of the returns for the
month of July 2022 before the 1st respondent.
Post on 29-08-2022.
H/o.
Sd/-
GOPINATH P.
JUDGE
AMG
WP(C) No.25135/2022 4/4
APPENDIX OF WP(C) 25135/2022
Exhibit-P 7 TRUE COPY OF THE FORM GST MOV-6 ORDER OF DETENTION
HAVING REFERENCE NO.NIL DATED 29/7/2022 U/S. 129(1)
ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER.
Exhibit- P13 TRUE COPY OF THE JUDGMENT IN W.P.C.NO.16356/2020 DATED
12/8/2020 OF THE HIGH COURT OF KERALA
