2019 (8) TMI 591 - HC - GST

Court restrains bank guarantee invocation under Section 129 of GST Act

The court found merit in the petitioner's concerns regarding the bank guarantee invocation under Section 129 of the GST Act. Consequently, the court ... Invocation of Bank Guarantee - Section 129 of the Kerala State Goods and Service Tax Act - filing appeal under Section 107 of the GST Act - HELD THAT:- A direction could be issued to respondents not to encash bank guarantee for a period of four weeks from today and it is also directed that the respondent communicates the decision taken under Section 129 within one week from today. Petition disposed off. Issues involved:Petition challenging bank guarantee invocation under Section 129 of GST Act.Analysis:The petitioner filed a writ petition fearing the invocation of a bank guarantee submitted during proceedings under Section 129 of the Kerala State Goods and Service Tax Act. The petitioner's counsel argued that there are substantial grounds to challenge the order under Section 129 and that the appropriate remedy is to file an appeal under Section 107 of the GST Act.Upon reviewing the records, the court found merit in the petitioner's concerns. As a result, the court directed the respondents not to encash the bank guarantee for a period of four weeks from the date of the judgment. Additionally, the respondents were instructed to communicate their decision made under Section 129 within one week from the judgment date.The court disposed of the writ petition with the above directions. The learned Government Pleader was tasked with informing the respondents of the operative part of the order to prevent the encashment of the bank guarantee or to communicate the decision made under Section 129 effectively.