2018 Taxo.online 551

WP(C).No. 41284 of 2018 dated 18.12.2018





Central Goods & Services Tax Act, 2017

CGST Rules 2017

Dama Seshadri Naidu, Justice

Partly in favour of assessee

High Court


Represented by: –

Petitioner: – Sri.K.S.Hariharan Nair

Respondent: – Dr Thushara James

Order: –

The petitioner, an assessee under the GST Act, manufactures and sells commercial vehicles. The petitioner’s goods and vehicles were detained by the Assistant State Tax Officer for reason of expiration of the validity of e-way bill. Aggrieved, the petitioner has filed the writ petition seeking the following prayers:

“(i) issue a Writ of Certiorari, or any other appropriate writ, order or direction as this Hon’ble Court deems fit and proper in the circumstances of the case, calling for the records leading to the issue of Ext.P3, P3(a) and Ext.P3(b), Ext.P4 & P5 reports and notices after scrutinizing the same, to strike down and quash the same;

(ii) issue a writ of mandamus or other appropriate writ, order or directions, directing the 1st respondent to release the goods and vehicles;

(iii) declare the provision empowering the GST officials to demand tax and penalty and detention of goods and vehicle as unconstitutional till the smooth, efficient and glitches free functioning of the GST Net work system is guaranteed to assesses;

(iv) Declare the provision empowering the intercepting officer as the adjudicating authority for the same case as unconstitutional; and

(v) issue such other writ, order, or direction, which this Hon’ble court deems fit and necessary in the interest of justice.

  1. The learned Division Bench of this Court in Renji Lal Damodaran v. State Tax Officer[1] has dealt with an identical issue.
  2. Applying the ratio of that judgment, I direct the respondent authorities to release the petitioner’s goods and vehicle on his furnishing Bank Guarantee for the tax and penalty due and a bond for the value of goods in the form as prescribed under Rule 140(1) of the CGST Rules.

With the above direction I dispose of the writ petition.

[1] Judgment dated 06.08.2018 in W.A. No.1640 of 2018

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