M/S. Playads Advertisement Spaces Private Limited vs. Southern Railway
Held
The High Court set aside the demand notice issued to the petitioner. It directed Southern Railways to hold talks with the GST Department for waiver of interest and penalty, and if unsuccessful, Southern Railways must deposit these amounts, absolving the petitioner of this liability.
Facts
M/s. Playads Advertisement Spaces Pvt. Ltd. executed contract work for Southern Railways, which deducted GST from payments but failed to deposit it with the government. As a result, the petitioner received a notice demanding the deducted CGST and SGST, along with applicable interest and penalty.
Key Issues
Whether a contractor can be held liable for GST, interest, and penalty when the tax was deducted by the service recipient (Southern Railways) but not remitted to the government.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 20TH DAY OF FEBRUARY 2024 / 1ST PHALGUNA, 1945 WP(C) NO. 37987 OF 2023 PETITIONER/S:
M/S. PLAYADS ADVERTISEMENT SPACES PRIVATE LIMITED, 6/853-1, MAK BUILDING, JUDGEMUKKU, THRIKKAKKARA, ERNAKULAM, KERALA-682021, REPRESENTED BY ITS DIRECTOR, JOBY. P. ISSAC, AGED 47 YEARS, S/O. P.V.ISSAC, PUNNAKKAL, KOLENCHERRY P.O., ERNAKULAM, PIN - 682311
BY ADVS. T.S.HARIKUMAR; P.B.SAHASRANAMAN
RESPONDENT/S:
1 SOUTHERN RAILWAY, REPRESENTED BY ITS SENIOR DIVISIONAL MANAGER, DIVISIONAL OFFICE, COMMERCIAL BRANCH, TRIVANDRUM, PIN - 695014 2 THE COMMERCIAL MANAGER, SOUTHERN RAILWAY, DIVISIONAL OFFICE, COMMERCIAL BRANCH, TRIVANDRUM, PIN - 695014 3 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, DEPARTMENT OF REVENUE, NEW DELHI- 110001,REPRESENTED BY ITS CHAIRMAN 4 THE COMMISSIONER OF STATE TAX, 9TH FLOOR, TAX TOWER, KILLIPPALAM, KARAMANA P.O., THIRUVANANTHAPURAM, PIN - 695002 5 THE DEPUTY COMMISSIONER (ARREAR RECOVERY), TAXPAYER SERVICES, SGST DEPARTMENT, PERUMANOOR P.O.,
W.P.(C) No.37987/2023
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THEVARA, ERNAKULAM, PIN - 682015 6 THE STATE TAX OF
The judgment continues below.
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