Page 59 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] HINDUSTAN COCA COLA PVT. LTD. v. ASSTT. STATE TAX OFFICER 545
2020 (35) G.S.T.L. 545 (Ker.)

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Shri Amit Rawal, J.
HINDUSTAN COCA COLA PVT. LTD.
Versus
ASSTT. STATE TAX OFFICER
ASSTT. STATE TAX OFFICER, SGST DEPTT., PALAKKAD
ASSTT. STATE TAX OFFICER
WP (C) No. 5384 of 2020 (W), decided on 19-3-2020
Detention of goods - Jurisdiction of officer to detain goods - Transit of
goods from Karnataka to Kerala - Detention by officer in Kerala on the ground
that goods misclassified - Tax paid at 12% classifying goods under HSN Codes
2202 99 20 - Assessee already applied for advanced ruling pertaining to same
matter in Gujarat and matter pending before High Court with interim stay fa-
vouring assessee - Case of bona fide miscalculation as to whether goods would
be exigible to 12% or 28% - Detention order and consequential notices not sus-
tainable and to be quashed - Goods to be released with direction that inspect-
ing authority of Kerala to prepare a report and submit it to assessing authority,
Karnataka for taking action - Section 129 of Central Goods and Services Tax
Act, 2017. - In case of a bona fide dispute with regard to the classification between a
transitor of the goods and the squad officer, the squad officer may intercept the goods and
detain them for the purpose of preparing the relevant papers for effective transmission to
the judicial assessing officers and nothing beyond. [paras 7, 8]
Petition allowed
CASES CITED
Commissioner of Commercial Tax v. Racket Backizer India Ltd.
— 2018 (19) G.S.T.L. 596 (All.) — Referred ................................................................................... [Para 4]
J.K. Synthetics Limited v. Commercial Taxes Officer — (1994) 4 SCC 276 — Referred ................... [Para 7]
N.V.K. Mohammed Sulthan Rawtger and Sons v. Union of India
— 2019 (20) G.S.T.L. 708 (Ker.) — Referred ............................................................................ [Paras 2, 7]
Synergy Fertichem Pvt. Ltd. v. State of Gujarat — 2020 (33) G.S.T.L. 513 (Guj.) — Relied on .. [Paras 2, 6]
Voltas Ltd. v. State of Gujarat — (2015) 7 SCC 527 — Referred ........................................................... [Para 4]
REPRESENTED BY : S/Shri A. Kumar, P.J. Anilkumar, Smt. G. Mani,
P.S. Sree Prasad, Job Abraham and Ajay V. Anand
Advocates, for the Petitioner.
Dr. Thushara James, GP, for the Respondent.
[Judgment]. - The petitioner a Private Limited Company engaged in
manufacture and supply of fruit-based beverages/drinks registered in State of
Kerala with GSTIN No. 32AAACH3005MIZO.
2. According to the petitioner, the carbonated fruit drinks manufac-
tured by them was classified under HSN 2202 99 20 under GST and discharging
GST @ 12% on all intra-State and inter-State supplies. The codes have been speci-
fied under the Chapter XXII of GST Tariff Codes. In the aforementioned code in
respect of fruit-based drinks the tax is @ 12% i.e., 6% under the Central GST and
another 6% as State GST. During the course of Business of supplying the goods
interstate, the aforementioned drinks were brought within the jurisdiction of
Kerala from Karnataka manufacturing plant and the vehicles carrying the afore-
mentioned goods were intercepted in Walayar, Palakkad on the premise that the

GST LAW TIMES  30th April 2020  59