The petitioner company is engaged in manufacturing & dealing in paints – The petitioner owned some paint mixing machinery which was seized by the Department
The petitioner provided bank guarantee & security bond to secure release of the machinery as well as the vehicle transporting it – While the petitioner was contemplating to avail appellate remedy, the Department threatened to invoke bank guarantee – Hence the present writ was filed to challenge invoking of bank guarantee.
Held: Section 107 of the CGST Act read with Section 108 of the GST Rules allows three months’ time to avail appellate remedy – Hence it would be inequitable if the Department invokes the bank guarantees before the petitioner exhausts appellate remedy & such remedy would become illusory – Hence the Department is restrained from invoking bank guarantee within such three month period: HC
Citation: 2018-TIOL-84-HC-KERALA-GST