Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.
MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 WP(C) NO. 27787 OF 2024 PETITIONER/S:
GOVINDAPURATH MEETHAL DEEPAK, AGED 40 YEARS PROPRIETOR, M/S. D2 ARCHITECTURAL STUDIO, GROUND FLOOR, FORTUNE, POOVANGAL ROAD METHOTTUTHAZHAM, VALAYANADU, KOZHIKODE, PIN - 673007 BY ADVS.
R.JAIKRISHNA NARAYANI HARIKRISHNAN C.S.ARUN SHANKAR ANISH P.
RESPONDENT/S:
1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM G.P.O., THIRUVANANTHAPURAM, PIN - 695001 2 STATE TAX OFFICER, TAXPAYER SERVICES CIRCLE CHALAPPURAM, STATE GOODS AND SERVICES TAX DEPARTMENT, 1ST FLOOR, GST COMPLEX, ERANHIPALAM P.O, KOZHIKODE, PIN - 673006 3 DEPUTY COMMISSIONER (ARREAR RECOVERY), TAX PAYER SERVICES STATE GOODS AND SERVICES TAX DEPARTMENT, JAWAHAR NAGAR COLONY, ERANHIPALAM P.O, KOZHIKODE, PIN – 673006 SMT. JASMINE M.M THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 27787 OF 2024 2 JUDGMENT
The petitioner is an assessee under the CGST/SGST Acts.
He suffered Ext.P1 order of assessment for the year 2018-19.
Petitioner has approached this Court, being aggrieved by the fact that the input tax credit has been denied to the petitioner on account of the provisions contained in Section 16(4) of the CGST/SGST Acts.
2.
Heard both sides.
3.
Having heard the learned counsel appearing for the petitioner, the learned Standing Counsel appearing for the Central Tax and Central Excise, I am of the view that, in the above facts and circumstances and taking into consideration the directions issued by this Court in M. Trade Links V.
Union of India (2024 KLT Online 1624), this writ petition can be disposed of, setting aside Ext. P1 assessment order to the extent that it denied input tax credit on account of the provisions contained in Section 16(4) of the CGST/SGST Acts and directing that the claim of the petitioner be considered in terms of the directions issued by this Court in M. Trade Links (supra).
WP(C) NO. 27787 OF 2024 3
In the light of the above, Exts.P1assessment order is set aside to the extent that it denies input tax credit on account of the provisions contained in Section 16(4) of the CGST/SGST Act and it is directed that benefit of the directions contained in the judgment in M.Trade Links (supra) shall also be extended to the petitioner. The competent among the respondents shall consider the directions contained in the judgment of this Court in M.Trade Links (supra) and pass orders considering the factual situation in this case, after affording an opportunity of hearing to the petitioner, within three months from the date of receipt of a certified copy of this judgment. The coercive proceedings (to the extent of input tax, which was denied to the petitioner on account of the provisions contained in Section 16(4) of the CGST/SGST Acts) shall stand suspended till a decision is taken by the respondent, as directed above.
The writ petition is ordered accordingly.
Sd/- GOPINATH P.
JUDGE ajt
WP(C) NO. 27787 OF 2024 4 APPENDIX OF WP(C) 27787/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 2ND RESPONDENT DATED 1.4.2024 Exhibit P2 A TRUE COPY OF THE RELEVANT EXTRACT OF THE FINANCE BILL 2024 DATED 23.7.2024 Exhibit P3 A TRUE COPY OF THE INTERIM ORDER PASSED BY THIS HON'BLE COURT IN WP(C) 22033/2024 DATED 24.6.2024 Exhibit P4 A TRUE COPY OF THE INTERIM ORDER PASSED BY THIS HON'BLE COURT IN WP(C) 24525/2024 DATED 9.7.2024