Facts of the Case

The respondent/writ petitioner, Y. Balakrishnan, had challenged (in W.P.(C) No. 18169/2021) a notice proposing confiscation of goods and a vehicle under the Kerala/Central GST law. By an interim order, the Court had directed release of the goods on payment of the applicable redemption fine, and the petitioner accordingly paid Rs. 46,53,000/- towards this fine. The State of Kerala had, in turn, filed a writ appeal (WA No. 1728 of 2021) challenging that interim order (dated 07.09.2021) and a subsequent review order (dated 29.11.2021). During the pendency of both matters, the final confiscation order under Section 130 of the CGST Act was passed on 03.04.2023, which the assessee separately challenged in a statutory appeal.

Issues Involved

  1. Whether the writ petition (challenging the confiscation notice) and the writ appeal (challenging the interim relief granted) survived once the final Section 130 confiscation order had itself been passed and was under separate appeal.

Petitioner's Arguments

  • With the final confiscation order dated 03.04.2023 already passed and separately under challenge in a statutory appeal, the writ petitioner sought permission to withdraw the writ petition without prejudice to the contentions raised in that appeal.

Respondent's Arguments

  • The State's writ appeal had itself been directed primarily at the interim order, which was rendered largely academic once the final confiscation order was passed.

Court Order / Findings

  • Both sides confirmed that the final confiscation order under Section 130 of the CGST Act had been passed on 03.04.2023 and was under challenge in a separate appeal.
  • The Court permitted the writ petition to be withdrawn, without prejudice to the contentions available to the parties in that appeal.
  • The connected writ appeal was also closed in light of the withdrawal of the writ petition.

Important Clarification

No finding was recorded on the validity of either the interim redemption-fine arrangement or the final Section 130 confiscation order — both proceedings were closed as overtaken by events, leaving the substantive challenge to be pursued afresh in the separately filed statutory appeal against the final confiscation order.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — Section 130 (confiscation of goods)

Decision – In Favour of

Disposed of without any decision on merits — both the writ petition and writ appeal were closed/withdrawn, without prejudice to the pending statutory appeal against the final confiscation order.

Case Details

Court: High Court of Kerala at Ernakulam
Case No.: WA No. 1728 of 2021 & WP(C) No. 18169 of 2021
Coram: Hon'ble Mr. Justice A.K. Jayasankaran Nambiar and Hon'ble Mr. Justice Mohammed Nias C.P.
Date of Judgment: 1 August 2023

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