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TMI Blog2020 (2) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... egard. Hence, it is ordered that the 1st respondent shall immediately release the goods and vehicle detained pursuant to Ext.P7 order to the petitioner on the petitioner executing a simple bond in that regard. However, the 1st respondent will be at liberty to proceed further with the adjudication proceedings in relation to Ext.P7 order and for that purpose, notice of hearing may be given to the petitioner and the petitioner should be permitted to give detailed written submissions in the matter. It is ordered that all the contentions raised by the petitioner herein and any of the contentions that may be raised by the petitioner before the 1st respondent should be duly adverted to and considered by the 1st respondent before he passes orders finalising the adjudication proceedings in that regard. It is ordered that the goods and vehicle detained pursuant to Ext.P7 shall be released forthwith by the 1st respondent to the petitioner, on his executing a simple bond and without insisting on the petitioner furnishing bank guarantee for the demanded value - the 1st respondent will take necessary action to comply with the other directions for the finalisation of the adjudication procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly declared as IGST ₹ 1,20,985/-. E-Way Bill issued under Rule 138 of the GST Rules generated on line is the fundamental document proving the correctness of the goods transported. The clerical error in the invoice will not prejudice the Revenue in any manner and the returns will automatically set right such trifling errors in documentation. However, the E-Way bill having been correctly generated, any adverse presumption of tax evasion is wholly out of context and untenable. It is also submitted that as per the provisions in Sec.126 of the GST Act dealing with the general disciplines related to penal proceedings are not to be initiated for minor breaches of tax regulations or procedural requirements, omission or mistake in documentation. Despite filing convincing explanation, the 1st respondent is not inclined to release the goods without payment of tax and penalty. In the light of these averments and contentions, the petitioner has filed the instant Writ Petition (Civil) with the aforementioned prayers. 4. Sri. K.N. Sreekumaran, learned counsel appearing for the petitioner would strongly urge that though in Ext.P1 invoice, the element of tax happened to be wrongly shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the tax amount is correctly shown as IGST amount of ₹ 1,20,985.12, which is nothing but 18% of the above said total taxable amount of ₹ 6,72,139.56. Accordingly, it is urged by Sri. K.N. Sreekumaran, learned counsel appearing for the petitioner that Ext.P2 which is the basic documentary transaction would clearly show that the IGST tax amount has been correctly and properly shown therein etc. 5. An argument was raised on the side of the respondents that the tax and penalty has been demanded as per the impugned Ext.P7 order as otherwise there will be loss of tax revenue to the State of Kerala. In that regard, the petitioner has also made the following contentions:- It is pointed out that the supply in this case is covered by the provisions in Sec.7 of the IGST Act 2017. As per sub-sec.1 of Sec.7 where the locations of the supplier and the place of supply are in two different States the supply shall be treated as a supply of goods in the course of interstate trade or commerce. Sec.5(1) of the IGST Act provides for levy of tax called IGST on all interstate supplies and collected in such manner as prescribed. In the matters relating to registration, accounts and recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner is a taxable person discharging its tax liability by filing true and correct returns and payment of tax. The interstate supply of goods in question being entered in the KVATIS Portal by the supplier electronically through valid E-Way bill which cannot be altered, any possibility of evasion of tax will not arise at all. 6. After hearing both sides and after careful evaluation of the facts and circumstances of the case, it is to be noted that the matter in relation to the detention of the goods as per the impugned Ext.P7 proceedings will have to be subjected to adjudication proceedings and only thereafter it can be finalised. Therefore, this Court need not make any final pronouncement on any of the above said issues. It is for the petitioner to raise all those contentions as and when he is given opportunity of hearing prior to the finalisation of the adjudication proceedings pursuant to the detention proceedings referred to in Ext.P7. However, this Court is constrained to say that, after hearing both sides, the petitioner has made out a strong case by which this Court is persuaded to accept the view that the goods and vehicle detained pursuant to Ext.P7 order could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of being heard to the petitioner through authorised representative or counsel, if any and then will pass final orders in the adjudication proceedings finalsing the same, without much delay. The entire proceedings in that regard may be duly completed on or before 15.3.2020. In this regard, it is ordered that all the contentions raised by the petitioner herein and any of the contentions that may be raised by the petitioner before the 1st respondent should be duly adverted to and considered by the 1st respondent before he passes orders finalising the adjudication proceedings in that regard. The petitioner may produce the certified copy of this judgment along with the written submissions as aforestated before the 1st respondent. 8. Accordingly, it is ordered that the goods and vehicle detained pursuant to Ext.P7 shall be released forthwith by the 1st respondent to the petitioner, on his executing a simple bond and without insisting on the petitioner furnishing bank guarantee for the demanded value. Thereafter the 1st respondent will take necessary action to comply with the other directions for the finalisation of the adjudication proceedings pursuant to Ext.P-7, as aforestated. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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