Kerala High Court Frees Goods & Vehicles Based on Bond: GST

The High Court of Kerala in a recent hearing has ordered the release of goods and vehicles on the basis of a simple bond. The Order comes into a case of Umiya Enterprise vs. State Tax Officer, the high court did not pronounce the final judgment however it stated that “it is the strong case from the side of the applicant party wherein the court was convinced to accept that the goods and vehicle detained in accordance with the Order Ext.P7 can be released on the basis of a simple bond and there is no need for the petitioner to furnish the bank guarantee for the amount needed in Order Ext.P7”.

In this case, the application part or petitioner is Umiya Enterprise, which was engaged in dealing with particleboards, plywood, and allied items registered under Central Goods and Service Tax (CGST) Get the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India & KGST Act. However, the main supplier of the petitioner and the goods supplied is M/s. Rukomoni Boards Pvt. Ltd. and it is properly covered within a valid invoice and E-Way bill.

The petitioner has not paid the tax under Integrated Goods and Service Tax (IGST) and that’s why the authority seized the goods and vehicles on the grounds. Meanwhile, The petitioner has contended that in the invoice the element of tax was wrongly shown as CGST and SGST @9%, which was just the mistake committed by the new accountant. In the same, it was declared that the GST E-Way bill Get to know about GST E Way bill and its generating process through online and SMS in a simple manner. Also, we have attached original screenshots of official E way bill portal for better understanding contains proper details.

Kerala High Court’s Single bench including of Justice Alexander Thomas Said that ” it is the strong case from the side of the petitioner wherein the court was persuaded to accept that the goods and vehicle detained in accordance with the Order Ext.P7 can be released on the basis of a simple bond and there is no need for the petitioner to furnish the bank guarantee for the amount demanded in Order Ext.P7″.