Judgment
WP(C) NO. 641 OF 2019 1 2025:KER:26152 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
WEDNESDAY, THE 26TH DAY OF MARCH 2025 / 5TH CHAITHRA, 1947 WP(C) NO. 641 OF 2019 PETITIONER:
M/S. BCG ESTATES AND BUILDERS PVT.LIMITED, 32/662, BCG ESTATES N.H.BYPASS, PALARIVATTOM P.O., ERNAKULAM KERALA- 682025. REPRESENTED BY ITS DIRECTOR-MS.RENU C.BABU.
BY ADVS.
M.GOPIKRISHNAN NAMBIAR SRI.K.JOHN MATHAI SRI.JOSON MANAVALAN SRI.KURYAN THOMAS SRI.PAULOSE C. ABRAHAM SMT.K.SHARANYA VIJAY RESPONDENTS:
1 STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001.
2 THE STATE TAX OFFICER(WC), STATE GST DEPARTMENT, CLASS TOWER, 2ND FLOOR, OLD RAILWAY STATION, ERNAKULAM-682018.
OTHER PRESENT:
SRI.ARUN AJAY SHANKAR, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 641 OF 2019 2 2025:KER:26152 MOHAMMED NIAS C.P., J ............................................................
W.P.(C) No.641 of 2019 .............................................................
Dated this the 26th day of March, 2025 JUDGMENT The petitioner is a Private Company incorporated in the year 1994 and is registered at Registrar of Companies, Ernakulam, involved in Real Estate Business. The 2nd respondent issued Ext.P1 notice dated 11.12.2018, proposing a re-assessment for the year 2011-12. The writ petition is filed challenging the notice and subsequent proceedings as without jurisdiction and issued beyond the period mentioned under Section 25(1) of the Kerala Value Added Tax Act, 2003 ( for short, the KVAT Act) as well the exemption brought in by amendment of Kerala Finance Act, 2017.
The petitioner had also contended that the proceedings initiated under the impugned notice are ultra vires the Constitution (One Hundred and First Amendment) Act, 2016.
2. The writ petition was considered earlier and recording the submission of the counsel appearing in this case that the case of the petitioner is covered by the judgment of this
WP(C) NO. 641 OF 2019 3 2025:KER:26152 Court dated 11.01.2009 in W.P.(C) No.11335 of 2018 and connected cases, the writ petition was dismissed.
3. Writ Appeal No.874 of 2019 was filed contending that Ext.P1 notice was challenged as time barred under the provision of Section 25(1) of the KVAT Act and also on the basis of the Constitution (One Hundred and First Amendment) Act, 2016 as it was inconsistent with the Entry 54 of List II of the Seventh schedule of the Constitution of India read with Article 246A of the Constitution. The Division Bench noticed the fact that the issue as regards the limitation under section 25(1) was never a subject matter to challenge in W.P.(C) No.11335 of 2018 and connected cases. Accordingly, the appeal was allowed and the judgment was set aside to the above extent for a fresh consideration of the question of limitation under section 25(1) of the KVAT Act.
4. The learned counsel for the petitioner relied on the judgments of the Hon'ble Supreme Court in Union of India And Another v. Vicco Laboratories [2007 (13) SCC], in Assistant Commissioner (Assessment) and others v. Cholayil Pvt. Ltd [2023 SCC Online SC 2296] and the judgment of this Court in Commercial Tax Officer, Anchal, Kollam District and others v. S.Najeem and
WP(C) NO. 641 OF 2019 4 2025:KER:26152 Another [2018 (3) KLT 877].
5. There is no dispute that the Ext.P1 notice under section 25(1) of KVAT Act was issued on 11.12.2018. It is also not in dispute that the period of limitation for the assessment year 2011-12 was over by 31.03.2018. Given the fact that Ext.P1 was issued on 11.12.2018, the contention raised on behalf of the petitioner on the question of limitation has to be accepted.
In view of the above, the impugned notice and all further proceedings are quashed and the writ petition is allowed as above.
Sd/- MOHAMMED NIAS C.P.
Anu
JUDGE
WP(C) NO. 641 OF 2019 5 2025:KER:26152 APPENDIX OF WP(C) 641/2019 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE NOTICE DATED 11/12/2018 ISSUED BY THE 2ND RESPONDENT UNDER SECTION25(1) OF THE KVAT ACT, FOR THE YEAR 2011-12.