2019 (8) TMI 593 - HC - GST

Maintainability of petition - statutory remedy of appeal under Section 107 of the Goods and Services Tax Act - non-consideration of documents placed on record by the petitioners before the assessment order - principles of natural justice - HELD THAT - The writ petition is disposed of by relegating the petitioner to work out the remedy of appeal under Section 107 of the Goods and Services Tax Act. The respondents are directed not to encash the bank guarantee for a period of 90 days from today and it is open to the petitioner to obtain orders as may be necessary in this behalf after the appeal and the stay petition are moved before the appellate authority. Petition disposed off.

Summary

Issues involved:
Challenge to order dated 05.07.2019 as illegal, failure to consider documents, invocation of bank guarantee before appeal period, maintainability of writ petition, verification of explanation for delayed filing, disposal of writ petition, direction not to encash bank guarantee, timeline for obtaining necessary orders.

Detailed Analysis:

1. Challenge to Order and Failure to Consider Documents:
The petitioners contested the legality of the Ext.P2 order dated 05.07.2019, alleging that the 1st respondent did not consider the documents submitted by them before making the assessment order in question. The counsel for the petitioner argued that the petitioner had a statutory remedy of appeal under Section 107 of the Goods and Services Tax Act, but the invocation of the bank guarantee by the 1st respondent allowed for encashment even before the appeal period had expired.

2. Maintainability of Writ Petition and Verification of Explanation:
The learned Government Pleader raised objections regarding the maintainability of the writ petition, questioning the validity of the explanation provided by the petitioner. Emphasizing that the explanation needed verification by the competent authority, it was argued that the writ petition should not be entertained. The counsel further suggested that the invocation of the bank guarantee could be deferred through appropriate court orders, allowing the petitioner to seek necessary relief through the appellate authority.

3. Disposal of Writ Petition and Direction Regarding Bank Guarantee:
After considering the arguments presented by both parties, the Court disposed of the writ petition by directing the petitioner to pursue the remedy of appeal under Section 107 of the Goods and Services Tax Act. The respondents were instructed not to encash the bank guarantee for a period of 90 days, giving the petitioner the opportunity to obtain required orders following the appeal and stay petition procedures. The Court specified that if a stay petition was filed, it should be addressed and resolved within the granted three-month period.

This detailed analysis of the judgment from the Kerala High Court highlights the key issues raised, arguments presented, and the final directives given by the Court regarding the legal matters at hand.