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. 26155 OF 2024 PETITIONER/S:
ILIYAS PULLICHALIL HAMEED, 00, XIII/582, PULICHALIL, PAIPRA, PEZHAKKAPILLY, ERNAKULAM, PIN - 686674 BY ADVS.
P.N.DAMODARAN NAMBOODIRI HRITHWIK D. NAMBOOTHIRI RESPONDENT/S:
1 UNION OF INDIA,REPRESENTED BY SECRETARY, GOVERNMENT MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI, PIN - 110001 2 STATE OF KERALA,REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 3 COMMISSIONER, CENTRAL GOODS AND SERVICES TAX AND C. E. DEPARTMENT, CENTRAL TAX AND CENTRAL EXCISE, C R BUILDING, I. S. PRESS ROAD, COCHIN, PIN - 682018 4 SUPERINTENDENT, CENTRAL GST DEPARTMENT, CENTRAL TAX AND CENTRAL EXCISE, MUVATTUPUZHA RANGE, K.P.C TOWERS, T. B. JUNCTION, MUVATTUPUZHA, PIN - 686661 SMT. JASMINE M M (GP), SRI. T C KRISHNA (DSGI INCHARGE) SRI. SREELAL N. WARRIER 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. 26155 OF 2024 2 JUDGMENT
The petitioner is an assessee under the CGST/SGST Acts.
He suffered Ext.P3 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 was 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. P3 assessment order to the extent that it denied input tax credit on account of
WP(C) NO. 26155 OF 2024 3 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.P3 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. 26155 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. 26155 OF 2024 5 APPENDIX OF WP(C) 26155/2024 PETITIONER EXHIBITS Exhibit - P1 TRUE COPY OF THE SHOW CAUSE NOTICE HAVING NO.15/2023-2024-GST (MUVPA) DATED 08.12.2023 WAS ISSUED U/S. 73(1) OF THE ACT, 2017 BY THE 4TH RESPONDENT.
Exhibit - P2 TRUE COPY OF THE REPLY DATED 28.12.2023 FILED BY THE PETITIONER.
Exhibit - P3 TRUE COPY OF THE ASSESSMENT ORDER UNDER SECTION 73 OF THE ACT 2017 HAVING NO.08/2024- 25 GST-MVPA DATED 12.04.2024 FOR THE YEAR 2018-19 TO THE PETITIONER.