M/S. Lachmandas And Company vs The State Tax Officer
2026 Latest Caselaw 1905 Ker

Kerala High Court

M/S. Lachmandas And Company vs The State Tax Officer on 20 February, 2026

                                                 2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                                  1

           IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

          THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.

  FRIDAY, THE 20TH DAY OF FEBRUARY 2026 / 1ST PHALGUNA, 1947

                        WP(C) NO. 977 OF 2024

PETITIONER(S):

          AMA PRIVATE LTD.,
          GIDC INDUSTRIAL ESTATE, NARODA, AHAMMEDABAD; GUJRAT-
          382330,
          REPRESENTED THROUGH ITS ASSISTANT GENERAL MANAGER
          (PROJECT) MR. ELDHO JAMES


          BY ADVS.
          DR.K.P.PRADEEP
          SHRI.SANAND RAMAKRISHNAN
          SHRI.HAREESH M.R.
          SHRI.T.T.BIJU
          SMT.T.THASMI
          SMT.M.J.ANOOPA




RESPONDENT(S):

    1     STATE OF KERALA,
          REPRESENTED BY ITS SECRETARY (TAXES),
          GOVERNMENT SECRETARIATE,
          THIRUVANANTHAPURAM, KERALA, PIN - 695001

    2     COMMISSIONER OF KERALA, STATE GST,
          KERALA STATE GST DEPARTMENT, TAX TOWERS, KILLIPALAM,
          KARAMANA P.O., THIRUVANANTHAPURAM, KERALA, PIN -
          695002

    3     ASSISTANT COMMISSIONER, SQUAD -VIII,
          KERALA SGST DEPARTMENT, GST COMPLEX,
          THEVARA, ERNAKULAM, PIN - 682015
                                                  2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                                2


    4     JOINT COMMISSIONER (APPEALS),
          STATE GOODS AND SERVICE TAX DEPARTMENT,
          KERALA, MATTANCHAERY, KOCHI,
          ERNAKULAM, PIN - 682002

    5     BRANCH MANAGER,
          HDFC BANK LTD., 1ST FLOOR, SL PLAZA, PALARIVATTOM,
          COCHIN, PIN - 682025

    6     ADDL.R6 -ENFORCEMENT OFFICER,
          ENFORCEMENT SQUAD NO.4, STATE GOODS AND SERVICE TAX
          DEPARTMENT, MATTANCHERRY, KOCHI, ERNAKULAM- 682002
          [ADDL.R6 IS IMPLEADED AS PER ORDER DATED 05.07.2024
          IN I.A-1/2024 IN WP(C) 977/2024]


          BY ADVS.
          SHRI.P.SATHISAN
          SHRI.JAVED HAIDER
          SMT.DONA AUGUSTINE
          SHRI.ABHIRAM SUNISH
          SHRI.SHIBU B.S
          SHRI.BIJU P.PAUL



     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR HEARING ON
20.02.2026, ALONG WITH WP(C).1689/2024, 3729/2024, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:
                                                  2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                               3


           IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

          THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.

  FRIDAY, THE 20TH DAY OF FEBRUARY 2026 / 1ST PHALGUNA, 1947

                    WP(C) NO. 1689 OF 2024

PETITIONER(S):

          M/S. LACHMANDAS AND COMPANY,
          4TH FLOOR, 66/3344E2, CHITTOOR ROAD,
          ERNAKULAM, KOCHI, REPRESENTED BY ITS MANAGER FRANCIS
          XAVIER, PIN - 682011


          BY ADVS.
          SMT.MEERA V.MENON
          SRI.R.SREEJITH
          SMT.K.KRISHNA
          SMT.PARVATHY MENON




RESPONDENT(S):

    1     THE STATE TAX OFFICER,
          STATE GOODS & SERVICES TAX DEPARTMENT,
          SQUAD NO. III, NORTH PARAVUR, MATTANCHERRY AT ALUVA,
          PIN - 683101

    2     THE JOINT COMMISSIONER (APPEALS),
          STATE GOODS & SERVICES TAX DEPARTMENT, ERNAKULAM,
          KOCHI, PIN - 682015

    3     THE BRANCH MANAGER,
          FEDERAL BANK LTD., PANAMPILLY NAGAR,
          ERNAKULAM, KOCHI, PIN - 682036

    4     THE ENFORCEMENT OFFICER,
          ENFORCEMENT SQUAD, KARUKUTTY, SGST DEPARTMENT, OPP.
                                                  2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                               4

          ADLUX INTERNATIONAL CONVENTION CENTRE, KARUKUTTY,
          ANGAMALLY, ERNAKULAM, PIN - 683576

    5     UNION OF INDIA,
          REPRESENTED BY SECRETARY TO GOVERNMENT,
          MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH
          BLOCK, NEW DELHI, PIN - 110001

    6     STATE OF KERALA,
          REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT,
          GOVERNMENT SECRETARIAT,
          THIRUVANANTHAPURAM, PIN - 695001



     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR HEARING ON
20.02.2026, ALONG WITH WP(C).977/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                  2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                               5


           IN THE HIGH COURT OF KERALA AT ERNAKULAM
                            PRESENT
          THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.
  FRIDAY, THE 20TH DAY OF FEBRUARY 2026 / 1ST PHALGUNA, 1947
                    WP(C) NO. 3729 OF 2024
PETITIONER(S):
          M/S. AVN AYURVEDA FORMULATIONS PRIVATE LIMITED,
          XIII/387, RAMANEEYAM, AYYANTHOLE,
          THRISSUR, 680003,
          REPRESENTED BY ITS DIRECTOR,
          UNNIKRISHNAN N.V., AGED 61,
          S/O. P. MADHAVA VARIER

          BY ADV SRI.SANTHOSH P.ABRAHAM


RESPONDENT(S):

    1     THE STATE TAX OFFICER,
          SQUAD NO.1, O/O DEPUTY COMMISSIONER OF STATE TAX
          (INTELLIGENCE), KERALA STATE GST DEPARTMENT,
          PALAKKAD, KERALA, PIN - 678001
    2     THE JOINT COMMISSIONER (APPEALS),
          KERALA STATE GST DEPARTMENT,
          STATE GST COMPLEX, POOTHOLE,
          THRISSUR, PIN - 680004
    3     STATE OF KERALA,
          REPRESENTED BY ITS SECRETARY,
          FINANCE DEPARTMENT, GOVERNMENT SECRETARIAT,
          THIRUVANANTHAPURAM, PIN - 695001
    4     UNION OF INDIA,
          REPRESENTED BY SECRETARY TO THE CENTRAL GOVERNMENT,
          FINANCE DEPARTMENT, PARLIAMENT STREET, NEW DELHI,
          PIN - 110001


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 20.02.2026, ALONG WITH WP(C).977/2024 AND CONNECTED CASES,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                        2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024
                                   6


                     JUDGMENT

In all these cases, the petitioners are aggrieved by the

penalty imposed upon them under Section 129(3) of the

CGST Act, 2017. Even though they filed appeal before the

first appellate authority challenging the orders of penalty,

the same was rejected by the first appellate authority. It was

in these circumstances, these Writ Petitions were filed

challenging the penalty orders as well as the appellate

orders.

2. In all these cases, interim orders were granted by

this Court subject to certain conditions. It is reported that

the conditions imposed by this Court have been complied

with and the said interim orders are subsisting.

3. Evidently, the petitioners were compelled to

approach this Court invoking the Writ jurisdiction of this

Court in view of the fact that the Appellate Tribunal for

considering the second appeal under Section 112 of the

CGST Act, 2017 has not started functioning. In such

circumstances, I am of the view that, as the petitioners have

complied with the condition imposed by this Court in the 2026:KER:15678 W.P.(C) Nos.977,1689 & 3729 of 2024

interim orders, these writ petitions can be disposed of

retaining the said interim orders and granting permission to

the petitioners to file appeals within a specified time, once

the Tribunal starts functioning.

4. Accordingly, these Writ Petitions are disposed of with

a direction that the petitioners shall file appeals against the

impugned orders before the Appellate Tribunal within a

period of three months from the date on which the said

Tribunal starts functioning. In case such appeals are filed

within the time specified above, the interim orders already

granted by this Court shall continue to operate during the

pendency of such appeals.

It is clarified that, in all these cases, if the petitioners

have already complied with the statutory stipulations

contemplated under Sec. 112(8) of the CGST Act, the bank

guarantee, if any, furnished by the petitioners, need not be

renewed.

Sd/-

                                      ZIYAD RAHMAN A.A.
   SM/20.02                                  JUDGE
                                                     2026:KER:15678
W.P.(C) Nos.977,1689
       & 3729 of 2024

APPENDIX OF WP(C) NO. 977 OF 2024

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE TAX INVOICE NO.

A1555/21-22/322 DATED 31-03-2022 ISSUED BY THE PETITIONER Exhibit P2 A TRUE COPY OF THE E-WAY BILL NO.

671402971328 DATED 31-03-2022 GENERATED Exhibit P3 A TRUE COPY OF THE ORDER IN FORM GSTMOV 06 NO.OR/GST/VIII/03/2022-23 DATED 05-04-2022 Exhibit P4 A TRUE COPY OF THE NOTICE IN FORM GSTMOV 07 NO OR/GST/VIII/03/2022-23 DATED 05-04-

Exhibit P5 A TRUE COPY OF THE BANK GUARANTEE SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P6 A TRUE COPY OF THE ORDER OF DEMAND OF PENALTY NO.GST/OR/VIII/03/22-23 IN FORM GST MOV 09 DATED 11-07-2022 Exhibit P7 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BEFORE THE 4TH RESPONDENT AGAINST EXT P6 ORDER Exhibit P8 TRUE COPY OF THE ORDER IN APPEAL GSTA 386/2022 DATED 29-09-2023 ISSUED BY THE 4TH RESPONDENT Exhibit P9 TRUE COPY OF ORDER NO-VIII/3/2022- 23(ES4EKM-BG/2023-24 DATED 20-06-2024 ISSUED BY THE 6TH RESPONDENT

RESPONDENTS' EXHIBITS:NIL TRUE COPY

P.A.TO JUDGE 2026:KER:15678 W.P.(C) Nos.977,1689 & 3729 of 2024

APPENDIX OF WP(C) NO. 1689 OF 2024

PETITIONER EXHIBITS

Exhibit P1 COPY OF BANK GUARANTEE ISSUED BY THE 3RD RESPONDENT BANK DTD. 04-08-2020 Exhibit P2 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT DTD. 22-03-2021 Exhibit P3 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT DTD. 30-11-2023 COPY OF LETTER ISSUED BY THE 4TH Exhibit P4 RESPONDENT TO THE 3RD RESPOIDNENT BANK DTD. 10-01-2024

RESPONDENTS' EXHIBITS:NIL TRUE COPY

P.A.TO JUDGE 2026:KER:15678 W.P.(C) Nos.977,1689 & 3729 of 2024

APPENDIX OF WP(C) NO. 3729 OF 2024

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE INVOICE NO. HO TFR 2122 0067 DATED 16-09- 2021 Exhibit P1(a) TRUE COPY OF THE INVOICE NO. HO TFR 2122 0068 DATED 16-09-2021 Exhibit P1(b) TRUE COPY OF THE INVOICE NO. HO TFR 2122 0069 DATED 16-09- 2021 Exhibit P2 TRUE COPY OF THE E WAY BILL NO.5112 9603

Exhibit P3 TRUE COPY OF THE BANK GUARANTEE NO.123GT02212630001 DATED 20-09- 2021 .ISSUED BY THE HDFC BANK, MADURAI BRANCH Exhibit P4 TRUE COPY OF THE ORDER NO.VC/1/GST/78/2021-22 DATED 13-12-2021 ISSUED BY THE 1ST RESPONDENT Exhibit P5 TRUE COPY OF THE APPEAL FORM GST APL 01 DATED 28-01-2022 FILED BY THE PETITIONER Exhibit P6 TRUE COPY OF THE APPEAL ORDER GSTA 37/2022 DATED 06-11-2023 ISSUED BY THE 2ND RESPONDENT Exhibit P7 TRUE COPY OF THE BANK GUARANTEE NO.123GT0221263000L AMENDMENT DATED 15-09- 2023 ISSUED BY HDFC BANK, MADURAI BRANCH

RESPONDENTS' EXHIBITS:NIL TRUE COPY

P.A.TO JUDGE