HUSKY INJECTION MOLDING SYSTEMS(INDIA) PRIVATE LIMITED Vs. COMMISSIONER OF STATE TAX KERALA GST DEPARTMENT

JUDGEMENT

(1.) Sri.Joseph Prabhakar, who appears for the appellant, would submit that the issue insofar as release of goods and vehicle by way of Bank Guarantee is covered by a judgment of this Division Bench itself, produced at Annexure-A1. However, the learned Single Judge, on the submission of the learned Government Pleader, had directed that,for remitting the amount temporary registration will be permitted. However, the appellant is not ready to make remittance of money as such, but undertakes to furnish Bank Guarantee.

(2.) Incidentally, learned Counsel Sri.Joseph Prabhakar also raise a contention on the basis of Section 130 of the Kerala Goods and Services Tax Act, 2017 ("Act" for short). Whether the failure to remit tax and penalty as provided under Section 129 of the Act, would lead to confiscation of goods under the provisions of Section 130. We are afraid that the time for raising such a contention has not arisen, since as of now the Department has not proceeded under Section 130. We gave Sri.Joseph Prabhakar the choice to withdraw the Writ Petition and challenge the Section 130 proceedings, when it is taken up or to furnish Bank Guarantee. The learned Counsel would then submit that; let there be an interim order granting release of the goods on furnishing of Bank Guarantee and the larger issue could be considered in the Writ Appeal or the Writ Petition itself. However, we are afraid, such course would not be commendable especially when a Bank Guarantee is given, eventually on final orders being passed either the Bank Guarantee would be released or enforced by the Department. In either case, there does not arise a failure to remit tax and penalty under Section 129 and that would not lead to a proceeding under Section 130. In such circumstance, we are not inclined to keep the matter pending. We, however, make it clear that on furnishing the Bank Guarantee for tax and penalty as provided under Rule 141 of the Central Goods and Services Tax Rules, 2017, and simple bond without sureties for the value of the goods, the goods and the vehicle shall be released expeditiously. Writ Appeal disposed of.