2018 (12) TMI 136 - HC - GST

Detention of goods with vehicle - misclassification in tax rate - Held that - The respondent authorities are directed to release the petitioners goods and vehicle on their furnishing Bank Guarantee for tax and penalty found due and a bond for the value of goods in the form as prescribed under Rule 140(1) of the CGST Rules - petition disposed off.

Summary

Issues:
Detention of goods for alleged misclassification in tax rate during flood relief activities; Petition seeking various reliefs including setting aside detention orders, release of goods and vehicle, challenging the constitutionality of tax laws and rules.

Analysis:

1. Detention of Goods:
The petitioners, involved in sending polypropylene mats for flood relief in Kerala, faced detention of goods and vehicle by the authorities due to alleged misclassification in tax rate. This action led to the filing of a writ petition by the petitioners to address the issue of detention during relief activities.

2. Reliefs Sought:
The petitioners sought multiple reliefs through the writ petition, including setting aside the detention orders, unconditional release of goods and vehicle, challenging the constitutionality of Sections 129 and 130 of Kerala Goods and Service Tax Act, 2017, and related provisions, as well as Rules 138 and 140 of the tax laws.

3. Judicial Precedent:
Reference was made to a previous judgment in Renji Lal Damodaran Vs. State Tax Officer, where an identical issue was addressed by the Division Bench of the Court. The judgment in the previous case was applied to the present situation to provide direction in resolving the matter at hand.

4. Court's Decision:
Based on the precedent set in the previous case, the Court directed the respondent authorities to release the goods and vehicle upon the petitioners furnishing a Bank Guarantee for tax and penalty due, along with a bond for the value of goods as per Rule 140(1) of the CGST Rules. With this direction, the Court disposed of the writ petition, providing a resolution to the issue of detention during the flood relief activities.

In conclusion, the High Court of Kerala addressed the detention of goods issue during flood relief activities, providing relief to the petitioners by directing the release of goods and vehicle upon fulfilling certain conditions. The judgment also highlighted the importance of legal precedents in guiding decisions and ensuring consistency in judicial outcomes.