Fact: M/s Pioneer Polyleathers Limited (“the petitioner”), a registered dealer, suffered the detention of its goods, under Section 129(3) of the GST Act. The Assistant State Tax Officer issued the notice, demanding the petitioner to pay IGST @ 18% and IGST @ 18%, both amounting to Rs.5,28,834/-. The record reveals that the petitioner paid the amount through the portal and obtained the payment receipt. Revenue insisted that payment should be by physical means either in cash or through Demand Draft (DD) and the Assistant State Tax Officer refused to release the goods.
Petitioner’s Interpretation of law: The petitioner contended that he paid the amount through the portal and obtained the payment receipt. But the Assistant State Tax Officer refused to release the goods, for he insists that the petitioner ought to have paid the tax and penalty either through cash or through Demand Draft. Aggrieved, the petitioner has filed a writ petition.
Held: The Hon’ble High Court of Kerala in the case of M/s Pioneer Polyleathers Limited Vs Assistant State Tax Officer directs the Assistant State Tax Officer to release the detained goods and the vehicle where the petitioner had paid the tax (IGST) and penalty amount as demanded through portal. Further, the court relies upon judgement in the case of M/s Fashion Marble and Granite Company Pvt. Ltd. where it was held that, “the respondent’s insistence that the petitioner should pay the amount either in cash or through demand draft cannot be sustained. Cumulatively it was viewed that the petitioner’s paying the penalty receipt to the portal of GST is eminently sustainable. Therefore, I direct that the respondent authority, release the goods, after receiving the payment receipt. With these observations, the writ petition stands disposed of.” Therefore, applying the ratio of the judgment in M/s. Fashion Marbles and Granites Pvt. Ltd. v. Assistant State Tax Officer, the Assistant State Tax Officer shall release the goods and the vehicle forthwith.
Citation: TS-693-HC-2018(KER)-NT