Kerala HC orders Release of Goods and Vehicles on Simple Bond [Read Order]

The Kerala High Court has ordered the release of goods and vehicles on the basis of a simple bond.

In the case of Umiya Enterprise vs. State Tax Officer, the court did not pronounce the final judgment rather it 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.

The petitioner namely Umiya Enterprise was engaged in dealing with plywood, particleboards and allied items registered under Central Goods and Service Tax (CGST) & KGST Act. M/s. Rukomoni Boards Pvt. Ltd. was the main supplier of the petitioner and the goods supplied were properly covered within a valid invoice and e-way bill. The authority seized the goods and vehicles on the grounds that the petitioner has not paid the tax under Integrated Goods and Service Tax (IGST).

It was contended by the petitioner that in the invoice the element of tax was wrongly shown as CGST and SGST @9%, however, this was just the mistake committed by the new accountant. At the same time, it was declared that the e-way bill contains proper details.

The Single bench of the High Court of Kerala comprising of Justice Alexander Thomas held 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.