Petroliv Petroleums Vs State of Kerala (Kerala High Court)
Kerala High Court held that reliefs sought in writ cannot be entertained as debit of penalty from amount receivable could only be treated as dispute arising from contract entered between petitioner and department. However, dispute arising out of a contract cannot be resolved in writ petition of this nature.
Facts- The petitioner is a registered dealer, under the provisions of the CGST and KGST Act. The petitioner had entered into a contract with the 9th respondent, for the purpose of collection and refining of bilge water from naval ships including INS Vikramaditya, under due authorization from the Indian Navy. On 24.11.2024, the Assistant Enforcement Officer of State GST, confiscated the vehicle along with the materials and a Summary Order dated 21.12.2024 was thereafter issued, confirming the order of confiscation u/s. 130 of the CGST Act. An appeal before the first appellate authority, which is now pending consideration.
However, in the meantime, on 21.07.2025, the Material Organisation, remitted an amount of ₹ 7,35,966/-, which is the penalty determined in the proceedings u/s. 130 to the Tax Department and the said amount was debited from the balance material value due to the petitioner from the Material Organisation without prior notice. This writ petition is submitted by the petitioner in such circumstances, seeking the following reliefs and seeking the amount deposited by the Material Organisation.
