Bash-P-International Vs State Tax Officer (Kerala High Court)
The Kerala High Court directed the GST Department to trace and return an original title deed furnished by the petitioner as security, and ordered issuance of a certificate if the document is found to be irretrievably lost. The petitioner, a partnership firm registered under the Kerala Value Added Tax Act, 2003, had furnished the original title deed as security pursuant to a conditional stay granted by the First Appellate Authority. The stay required payment of 25% of the disputed amount and furnishing security for the balance. The petitioner complied by remitting the required amount and executing bonds, submitting the original title deed along with a covering letter acknowledged by the assessing authority.
The appeal was ultimately allowed in favour of the petitioner, and the Department’s challenge before the Tribunal was dismissed, rendering the appellate order final. Thereafter, the petitioner repeatedly sought return of the original title deed. In response, the Department stated that upon verification of records, the original title deed and bond could not be traced.
Before the Court, the Department denied receipt of the original title deed, relying on the inward register and an endorsement suggesting only a bond was to be kept in safe custody. The Court examined the record and found merit in the petitioner’s claim. It noted that the bond executed by the petitioner expressly required deposit of the original title deed, and that the covering letter acknowledging submission of the deed bore an official endorsement. The Court verified the original covering letter and found it consistent with the Department’s own copy, confirming submission. The Court rejected the Department’s denial, holding that the documents established that the original title deed had indeed been furnished. It further observed that the Department’s reply admitting inability to trace the deed did not deny receipt.
