IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 28^TH DAY OF JANUARY 2025 / 8TH MAGHA, 1946 WP(C) NO. 3411 OF 2025 PETITIONER:

SALIM P.A AGED 52 YEARS, SON OF ABDUL JABBAR PROPRIETOR M/S.ORIENTAL METALS JAMEELA BUILDING, DANAPPADY, KAYAMKULAM ROAD, VANDIKAPPALLY BUS STOP, MUTHUKULM, ALAPPUZHA RESIDING AT PUTHENPEEDIKAYIL, MUDIKKAL P.O., PERUMBAVOOR, ERNAKULAM, PIN - 690506 BY ADVS.

DR.K.P.PRADEEP SRI.T.T.BIJU SMT.T.THASMI SMT.M.J.ANOOPA SMT.POOJA V.M.

RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY ITS SECRETARY TO THE GOVERNMENT, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001

2 COMMISSIONER OF GST, KERALA KERALA GOODS AND SERVICE TAX DEPARTMENT, GOVERNMENT OF KERALA, TAX TOWERS, KARAMANA THIRUVANANTHAPURAM, PIN - 695002

3 ENFORCEMENT OFFICER/ STATE TAX OFFICER, ENFORCEMENT SQUAD NO 2, ERNAKULAM KERALA STATE GOODS AND SERVICE TAX DEPARTMENT, SECOND FLOOR, SGST COMPLEX, PERUMANOOR P.O., ERNAKULAM, PIN - 682015

4 ASSISTANT ENFORCEMENT OFFICER ENFORCEMENT SQUAD NO 2, ERNAKULAM, KERALA STATE GOODS AND SERVICE TAX DEPARTMENT, SECOND FLOOR, SGST COMPLEX, PERUMANOOR P.O., ERNAKULAM, PIN - 682015 BY SMT.JASMIN M.M., GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.01.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

BECHU KURIAN THOMAS, J.

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W.P.(C) No.3411 of 2025 ---------------------------------

Dated this the 28^th day of January, 2025

JUDGMENT

Petitioner challenges the proceedings initiated under section 129(1) and section 130 of the Central Goods and Services Tax Act, 2017/State Goods and Services Tax Act, 2017 (hereinafter referred to as ‘the GST Act’ for short). Petitioner also seeks for a declaration that the notices issued under section 130 of the GST Act are illegal apart from a direction for release of the consignment and conveyance detained.

2. Petitioner runs a proprietary concern in scrap materials under the name ‘M/s Oriental Metals’. Petitioner alleges that he purchases scrap materials from different registered persons and supplies it to his customers. While so, on 11.01.2025, a consignment, which is purported to have been supported by relevant documents, while being transported from Muthalakulam to Kanjikode at Palakkad, was intercepted by the third respondent and on noticing certain suspicious circumstances, the goods and the conveyance were detained.

3. After verification, an order of detention dated 18.01.2025 was issued under section 129(1) of the GST Act alleging that the goods were being transported without valid documents. Thereafter, a notice was issued under section 130 of the GST Act directing the petitioner to submit his explanation.

4. Petitioner filed a reply stating that the goods under detention were covered by valid documents including tax invoice and an e-way bill, both dated 10.01.2025. A hearing was also conducted on 24.01.2025 and orders are awaited. In the meanwhile, this writ petition has been filed challenging the proceedings, contending that the detention and consequent notice for confiscation are contrary to law and also that the respondents are misusing the authority conferred upon them under section 130 of the GST Act. According to the petitioner, there is no reason to invoke section 130 of the GST Act and no evasion of tax had even been detected. Petitioner pleads that it cannot even be imputed that the goods under transport were not covered by valid documents.

5. I have heard Dr.Pradeep K.P., learned counsel for the petitioner as well as Smt.Jasmin M.M., learned Government Pleader.

6. Petitioner is challenging an order of detention issued under section

129(1) as well as a notice of confiscation issued under section 130 of the GST Act. A perusal of Ext.P6 notice for confiscation indicates that a prima facie satisfaction has been recorded in the notice that M/s. Oriental Metals, which is a proprietary concern of the petitioner, had colluded with fraudulen