TaxTMI 
TaxTMI 
2019 (6) TMI 716
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....E PRASAD For The Respondents : SRI. C. E. UNNIKRISHNAN, GOVERNMENT PLEADER SRI. S. ANIL KUMAR (TRIVANDRUM) AND SRI. SAJU. K. PERUTTY JUDGMENT As both these writ petitions involve a common issue, they are taken up together for consideration and disposed by this common judgment. For the sake of convenience, the reference to facts and exhibits is from W. P. (C). No. 18370/2018. 2. The petitioners in both the writ petitions are sister concerns engaged in the trade of gold jewellery under the brand name "Josco". It is not in dispute that the petitioners are registered dealers under the State Goods and Services Tax Act, 2017 [hereinafter referred to as the "SGST Act"]. The issue involved in these writ petitions arises pursuant to an entrust....
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.... contention that inasmuch as the gold belonging to them, and covered by Ext. P4 delivery chellan and Exts. P15 and P18 issue vouchers, were seized from the premises of the 6th respondent hallmarker, with whom the goods were entrusted by the petitioners only for the purposes of getting them hallmarked, there was no justification for the continued seizure of the gold ornaments so entrusted, since, the proceedings against the 6th respondent hallmarker could only be in respect of alleged attempts at evasion of tax by the 6th respondent hallmarker, and other offences incidental thereto. The relief sought for in the writ petitions is therefore to quash Exts. P8 and P8(a) seizure orders and Exts. P9 and P9(a) prohibition orders, insofar as they re....
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....ed by the said clients against bank guarantees furnished by the said persons. It is pointed out that, in terms of Section 67(6) of the SGST Act, the goods belonging to the petitioners and seized from the premises of the 6th respondent, can also be released on a provisional basis subject to the petitioners furnishing security in such manner, and such quantum as may be prescribed, or on payment of the applicable tax, interest and penalty, as the case may be. 4. I have heard Sri. A. Kumar, the learned counsel appearing for the petitioners in both these writ petitions, Sri. C. E. Unnikrishnan, the learned counsel for the respondent authorities under the SGST Act. I have also heard Sri. S. Anilkumar, the learned counsel for the 6th respondent ....
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....t, would ordinarily be in respect of his liability to tax on services performed by him on gold jewellery entrusted to him by various customers. The proceedings initiated under the SGST Act against the 6th respondent must therefore be for recovery of any tax from him or for the imposition of any penalty in connection with any offence committed by him in that context. What is significant to note is that, in any proceedings against the 6th respondent, the respondent authorities under the SGST Act, cannot ultimately confiscate the gold seized from the 6th respondent, more so, when it cannot be disputed that the gold jewellery seized from the 6th respondent belongs to the petitioners, and the entrustment of the same is evidenced by the delivery ....