Kerala High Court Quashes Tax Order, Directs Reevaluation

The High Court of Kerala quashed Ext.P9 order confirming a tax and penalty demand, directing the respondent to reevaluate and issue fresh orders considering the petitioner's contention regarding the export of goods, which was not addressed in the original order. The court found that the failure to consider this crucial aspect vitiated the order, instructing the petitioner to appear before the respondent for reevaluation and setting a one-month deadline for the revised orders to be issued in compliance with the court's directions.

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Issues: Challenge to Ext.P9 order confirming tax and penalty demand, non-consideration of petitioner's contention regarding export of goods, vitiation of Ext.P9 order due to non-application of mind.

In this judgment by the High Court of Kerala, the challenge was made against Ext.P9 order confirming a tax and penalty demand following the detention of a vehicle carrying goods owned by the petitioner. The petitioner contended that a significant portion of the turnover related to goods intended for export, which were not taxable under the GST Act. However, the respondent did not examine this contention, leading to the challenge that Ext.P9 order was flawed due to a lack of proper consideration by the respondent.

Upon hearing arguments from both parties, the court observed that the petitioner's claim regarding the export of goods was not addressed in Ext.P9, despite being raised in Ext.P7 reply. The court concluded that this failure to consider the crucial aspect of export vitiates Ext.P9 order. Consequently, the court decided to quash Ext.P9 order and directed the respondent to issue fresh orders after a reevaluation, taking into account the contentions presented in Ext.P7 reply. The petitioner was instructed to appear before the respondent for this purpose on a specified date, and the respondent was given a deadline of one month to issue the revised orders in compliance with the court's directions.

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