U.S. Girish Proprietor, M/S. S.G. Diamonds and Jewellers v. State Tax Officer, Squad No.VII, State Goods and Services Tax Department; Commissioner of State Tax, State GST Department
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- Bechu Kurian Thomas
- Judgment Date
- 2021-10-25
- Court Decision / Holding
- Writ petition dismissed. The court held that the finding of evasion is a factual conclusion grounded in the circumstances of the transaction and cannot be interfered with under Article 226; the petitioner has an effective appellate remedy.
- Final Disposition
- Writ petition dismissed. Order of confiscation sustained in principle; no interference with the factual finding of evasion; appellate remedy available under law.
Parties to the Case
Appellants / Petitioners
- U.S. Girish, Proprietor, M/s. S.G. Diamonds and Jewellers, 715-716, Krishna Street, Edayar Street, Coimbatore, Tamil Nadu-641001
Respondents
- State Tax Officer, Squad No. VII, State Goods and Services Tax Department, Palakkad
- Commissioner of State Tax, State GST Department, Tax Towers, Killippalam, Karamana, Thiruvananthapuram
Legal Representation & Advocates
Counsels for Petitioners
- • Sri. Harisankar V. Menon
- • Sri. Meera V. Menon
Counsels for Respondents
- • Dr. Thushara James, Sr. Govt. Pleader
Case Synopsis & Summary
U.S. Girish, a dealer in gold jewellery, challenges the confiscation of 1033.630 grams of gold ornaments seized near Palakkad Junction. In March 2021 the ornaments were detected during a Railway Police Force search after the petitioner transported them from Coimbatore to Mangalore, triggering proceedings under sections 129 and 130 of the CGST Act for alleged absence of a delivery challan. Ext.P5, dated 20.03.2021, is an order of confiscation premised on the finding that the petitioner transported the ornaments without the mandatory documents under section 31 of the CGST Act read with Rule 55 of the CGST Rules, 2017, and that there was an intention to evade tax. Pursuant to subsection (7) of section 130, Ext.P6 issued a final intimation demanding payment by 19.06.2021, warning that failure would lead to sale of the confiscated goods with sale proceeds deposited with the Government. The petitioner challenged Ext.P5 and Ext.P6, arguing that without clear evidence of evasion the confiscation is unwarranted; he relied on Gokul P.G. and Ors. v. The State of Kerala and Ors. to support the plea that absence of a delivery challan may attract penalties rather than confiscation. The respondents maintain that Ext.P5 reflects the Proper Officer’s satisfaction of evasion; the writ petition should not reexamine such factual findings in exercise of Article 226. After hearing, the court held that the finding of evasion is a factual conclusion not to be interfered with under Article 226, and dismissed the petition, while noting the petitioner’s available appellate remedy.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioner contends that confiscation under section 130 should not be invoked without a clear showing of evasion of tax. Relying on Gokul P.G. and Ors. v. The State of Kerala and Ors. (2021) 88 GSTR 282 (Kerala), petitioner submits that absence of a delivery challan alone might attract penalties, not confiscation. The petition further argues that the record lacks explicit evidence of evasion and that Ext.P5’s assertion of evasion is a mere statement of intent without corroborating facts. The remedy suggested is to apply statutory provisions relating to penalties and to pursue available appellate avenues, rather than confiscation.
Contentions of Respondents
The respondents submit that Ext.P5 reflects the Proper Officer’s satisfaction of evasion based on the absence of mandatory documents (delivery challan) under section 31 read with Rule 55, and that the final intimation under section 130(7) was correctly issued. They argue the writ petition is not the proper forum to reweigh disputed facts and rely on Article 226 to withhold interference, noting that the aggrieved party has an appellate remedy under section 107.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Gokul P.G. and Ors. v. The State of Kerala and Ors. | (2021) 88 GSTR 282 (Kerala) | Mentioned Only | Cited by the petitioner to argue absence of evasion; the court did not rely on or apply its reasoning to overturn Ext.P5/Ext.P6, instead upholding the officer’s findings as a matter of fact. |
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