Kerala High Court Directs GST Department To Ensure No Tax Evasion In Frozen Chicken Sale

Disposing of a writ petition alleging that frozen chicken was being sold at 0% GST instead of the applicable 5%, the Kerala High Court recently directed the GST department to ensure that no tax evasion takes place. Justice Ziyad Rahman A.A. also noted that the State GST Department was already investigating the matter. Hence, the Court disposed of the writ petition filed by the petitioner, who is a chicken meat dealer, who alleged that tax evasion was taking place in the sale of frozen chicken in Kerala. The petitioner filed a complaint alleging that packed frozen chicken is being transported into Kerala from other States and is being sold with 0% tax. According to the petitioner, some dealers are bringing frozen chicken in small containers to the State, by showing it as 0% tax item, whereas, the actual tax payable for frozen chicken is 5%. A copy of the complaint given by the petitioner was forwarded to the Malappuram Intelligence Unit. The Court noted that an investigation into the matter is being conducted, and the Deputy Commissioner of State Tax (2nd respondent) had reported that appropriate action will be taken if any tax evasion is found. In view of the above, the bench directed the GST department to take necessary steps to ensure that no tax evasion is taking place and to take proper measures to curb such illegal practice."Accordingly, it is ordered that the respondent shall take necessary steps to ensure that, no tax evasion, as alleged by the petitioner is taking place and proper measures for curbing such illegal practice shall be taken. With the above observations, this writ petition is disposed of." Case Title: Liyakhat Ali v. The Commissioner, State GST Department Case Number: WP(C) NO. 44655 OF 2024Citation: 2025 LiveLaw (Ker) 747 Counsel for Petitioner: Kum. Gayathri Muraleedharan Counsel for Respondent/Department: K. Manoj Chandran Click Here To Read/Download The Order

Kerala High Court Directs GST Department To Ensure No Tax Evasion In Frozen Chicken Sale

Mehak Dhiman

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