Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 23RD DAY OF JULY 2024 / 1ST SRAVANA, 1946 WP(C) NO. 26296 OF 2024 PETITIONER/S:
J.P.POLYMERS (REPRESENTED BY ITS MANAGING PARTNER SRI. GEORGE JOSE MATHEW),AGED 43 YEARS XIX-460, MYLACHAL,KOOVAPPADY, ERNAKULAM, PIN - 683543 BY ADV REGHUNATHAN V.G.
RESPONDENT/S:
1 ASSISTANT COMMISSIONER, STATE GOODS & SERVICE TAX DEPARTMENT, TAX PAYER SERVICES-CIRCLE, PERUMBAVOOR, ERNAKULAM, PIN - 683542 2 SENIOR ENFORCEMENT OFFICER, ENFORCEMENT OFFICER SQUAD, CHALAKUDY, STATE GOODS & SERVICES TAX DEPARTMENT, TAX PAYER SERVICES CIRCLE, WADAKKANCHERY, THRISSUR-(DT), PIN - 680582 3 STATE OF KERALA REPRESENTED BY ADDITIONAL CHIEF SECRETARY (TAXES),GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 4 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, REPRESENTED BY ITS CHAIRMAN, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN - 110001 5 UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN - 110001 6 GST COUNCIL, REPRESENTED BY ITS SECRETARY, 5TH FLOOR, TOWER 2, JEEVAN BHARATHI BUILDING, JANA PATH ROAD CONNAUGHT PLACE, NEW DELHI, PIN - 110001 SMT. THUSHARA JAMES (SR GP), SRI. SREELAL N WARRIER (SC), SRI. T C KRISHNA (DSGI INCHARGE) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 26296 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. A challenge has been raised to the constitutional validity of Section 16(4) of the CGST/SGST Acts. This issue appears to be covered against the petitioner by the judgment of this Court in M. Trade Links V. Union of India (2024 KLT Online 1624).
3.
Heard both sides.
4.
Having heard the learned counsel appearing for the petitioner, the learned Government Pleader and 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 (supra), this writ petition can be disposed of, setting aside Ext. P1 assessment
WP(C) NO. 26296 OF 2024 3 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). The challenge raised to the constitutional validity of Section 16(4) of the Acts is repelled in the light of the findings of this Court in M. Trade Links .
In the light of the above, Exts.P1 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
WP(C) NO. 26296 OF 2024 4 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. 26296 OF 2024 5 APPENDIX OF WP(C) 26296/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ABOVE ORDER BEARING REFERENCE NUMBER : ZD32042401852LY DATED 18.4.2024 ALONG WITH ANNEXURE TO ORDER BEARING
REFERENCE
NUMBER OIO/TPSITSR/CWKCY/2024/19/STO
DATED 18.04.2024 ISSUED BY THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE PRESS RELEASE CONTAINING THE RECOMMENDATIONS OF THE 53RD GST COUNCIL MEETING DATED 22.06.2024