SLM Stationery Vs Union of India (Karnataka High Court)
The Karnataka High Court considered a writ petition filed by a proprietorship concern challenging multiple actions taken by GST authorities, including orders dated 25.11.2024 and 30.11.2024 extending time for physical verification, a confiscation order dated 24.12.2024, and a consequent auction notice dated 02.01.2025. The petitioner also sought a mandamus for unconditional release of the goods and the vehicle, contending that the actions were without jurisdiction.
The petitioner owned a consignment of arecanut being transported in a vehicle bearing registration No. KA-63-3260 to a buyer. Prior to movement, an invoice was generated and handed to the driver, but the e-way bill could not be generated due to network issues. The vehicle was intercepted on 19.11.2024 by the fourth respondent, a Commercial Tax Officer under the Karnataka Goods and Services Tax Act, 2017 (KGST). On the same day, the driver’s statement was recorded and an order for physical verification was passed, citing suspicion regarding the existence of the consignor and consignee and the genuineness of documents and transactions.
The petitioner claimed to have appeared before the officer with all documents and sought release of the goods and conveyance, asserting no intent to evade tax. However, on 25.11.2024, the third respondent extended the time for physical verification on the ground that the authorised person did not appear, a fact disputed by the petitioner. A summons under Section 70 of the CGST/KGST was issued, and the petitioner appeared on 04.12.2024, giving a statement that the goods belonged to him and were being transported to a buyer in Delhi.
