2019 (6) TMI 1389 - HC - GST

Release of detained goods - Section 129 of KSGST Act - appealable order or not - availing the remedy of appeal - HELD THAT - The writ petition is dismissed. All contentions available against Ext.P5 are preserved and dismissal of the writ petition shall not be understood as this Court expressing any view on the merits raised by the petitioner on Ext.P5.

Summary

Issues:
Challenge to Ext.P5 order under Section 129 of KSGST Act; Jurisdiction of High Court under Article 226 of the Constitution of India; Stay of encashment of Bank Guarantee pending appeal.

Analysis:
The petitioner challenged Ext.P5 order made under Section 129 of the Kerala State Goods and Services Tax Act (KSGST Act), which was deemed appealable. The petitioner, by providing a Bank Guarantee, had managed to secure the release of the detained goods. The petitioner's counsel sought permission to file an appeal and address the impugned order within the legal framework. On the other hand, the Government Pleader contended that the writ petition lacked grounds justifying High Court's jurisdiction under Article 226 of the Indian Constitution. Despite not delving into the merits of the case, the High Court dismissed the writ petition, ensuring all arguments against Ext.P5 were preserved, clarifying that the dismissal did not indicate the Court's stance on the merits raised by the petitioner regarding Ext.P5.

The petitioner expressed concerns about the potential encashment of the Bank Guarantee before filing an appeal against Ext.P5. To maintain the current status regarding the Bank Guarantee and facilitate the petitioner's pursuit of the appeal process, the High Court granted a stay on the encashment of the Bank Guarantee for two weeks. During this period, the petitioner was encouraged to file the appeal and was given the liberty to request a stay on Ext.P5. The appellate authority was directed to address any stay applications within the two-week stay period granted for the encashment of the Bank Guarantee.