TVL. ASIAN PAINTS LIMITED Vs. ASSISTANT COMMISSIONER (ST)

JUDGEMENT

(1.) This Writ Petition has been filed seeking for issuance of a Writ of Mandamus directing the first respondent herein to accept the bank guarantee equivalent to the disputed penalty amount of Rs.25,86,662.00 in accordance with the provisions of Sec. 129(1)(c) of the CGST Act, 2017 and provisionally release the goods along with the conveyance bearing TN 07 AV 7881, pass such other order or orders as this Court may deem fit and proper in the circumstances of the case.

(2.) The case of the petitioner is that the petitioner company is a leading brand and manufacturer in paints and is a Public Limited Company registered under Companies Act, 2013 and also registered under the Central Goods and Services Tax Act, 2017( in short 'CGST Act') and Tamil Nadu Goods and Services Tax Act, 2017 ( in short 'TNGST Act'). The petitioner imported Titanium Dioxide Rutile bearing TN 07 AV 7881 from M/s.Tronox Pigments Private Limited, Australia for their manufacturing plant at Sriperumbudur. While that being so, the goods were inspected by the second respondent and the the petitioner was issued with the Order of Detention in Form GST MOV-06 dtd. 21/3/2022 along with the Penalty Notice under Sec. 129(3) of the CGST Act, 2017 and TNGST Act, 2017 by the first respondent. Challenging the order of detention by the first respondent, the petitioner filed Writ Petitions in W.P.Nos.7378 and 7384 of 2022 dtd. 29/3/2022 and the same was disposed of by this Court with a direction to the petitioner herein to raise all the points on merits before the adjudicating authority and directed the respondents herein to pass an order within a period of two weeks after giving an opportunity of being heard by considering the circumstances of the case.

(3.) Thereafter, the petitioner filed his objections on 4/4/2022 regarding detention of goods that were imported by the petitioner. However, the first respondent vide order dtd. 7/4/2022 confirmed the levy of penalty of Rs.25,86,662.00 under Sec. 129(1)(a) of the CGST Act, 2017. Thereafter, the petitioner made a representation dtd. 11/4/2022 requested die respondents to release the goods in the vehicle bearing Regn.No.TN 07 AV 7881 by stating that they would furnish the bank guarantee equivalent to the disputed penalty amount of Rs.25,86,662.00 and further that the petitioner yet to prefer appeal under Sec. 107 of the CGST Act, 2017 against the order dtd. 7/4/2022, however, till date no order has been passed on representation of the petitioner. Aggrieved by the same, this Writ Petition is filed.