PHILIPS CARBON BLACK LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner, a dealer under the provisions of the Central Goods and Services Tax Act and Kerala Goods and Services Tax Act, 2017, has filed the present writ petition challenging the proceedings initiated under Sec. 149 of the CGST Act, 2017 on the ground that the proceedings are wholly without jurisdiction and without the authority of law.

(2.) The petitioner has challenged Ext.P8 communication whereby the petitioner has been intimated by the 2nd respondent in response to the letter of the petitioner dated nil that since the destination of the transport is Kannur in Kerala, therefore, the supply being a taxable supply, SGST component of the GST is creditable to Kerala State. It is also stated in the said communication that if supply is not a taxable supply, for job work as claimed by the petitioner, the supplier should issue the supply documents (Delivery challan), the details of which have to be reflected in the accounts records of the consignee. Without this supply document, the nature of supply, the accountability of the transaction and also the further movement of goods at the hands of the consignee cannot be monitored by the department. In the absence of an online declaration like KER -1, E way bill etc. the monitoring of the further movement of the goods becomes more difficult.

(3.) It is stated that the breach of the rule has taken place inasmuch as the supply documents that caused the movement of the goods to the destination was not carried by the conveyance, and this contravention of the provisions of the Act requires the inspecting officer to issue notice under Sec. 129(3) of the GST Act for which the notice has already been issued and the goods would be released as per the law.