Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 18TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945 WP(C) NO. 42111 OF 2023 PETITIONER:
LATTA INNOVATIONS PRIVATE LIMITED AGED 38 YEARS T.C. 31 /575(2) ,SNNRA -PETTAH PETTAH .P.O.
THIRUVANANTHAPURAM REPRESENTED BY MANAGING DIRECTOR CHEENATH RAPPAI VICTOR, PIN - 695024 BY ADVS.
SREEJI M.M MADHUSOODANANNAIR.P RESPONDENTS:
1 UNION OF INDIA THROUGH ITS SECRETARY (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI G.P.O., PIN - 110001 2 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM G.P.O., THIRUVANANTHAPURAM., PIN - 695001 3 JOINT COMMISSIONER TAX PAYER SERVICE CIRCLE,NATTIKA STATE GOODS AND SERVICES TAX DEPARTMENT, POOTHOLE, THRISSUR THRISSUR., PIN - 680004 4 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS GST POLICY WING NORTH BLOCK, NEW DELHI, REPRESENTED BY PRINCIPAL COMMISSIONER (GST), PIN - 110001 JASMINE M.M.-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.42111 of 2023 2 JUDGMENT Dated this the 18th day of December, 2023 The present writ petition has been filed under Article 226 of the constitution of India seeking the following reliefs:
(a) To declare that the blocking of ITC by the Joint Commissioner invoking provisions of Rule 86A under CGST/SGST Rules 2017 as ultra vires as well as Unconstitutional, Sufficient directions may be given to unblock the ITC available.
(b) To quash Ext.p1 order of Joint Commissioner issued by the 3rd respondent by the issue of a writ of Certiorari or such other writs or order of direction.
(c) To grant the petitioner such other incidental reliefs including the costs of these proceedings.
2.
Though the petitioner has made a feeble challenge under Rule 86A/CGST/SGST Rules 2017.
However, he has filed his prayer for quashing of Ext.P1 order passed by the Joint Commissioner- the 3rd respondent.
3.
The
Deputy
Commissioner,
Inter Administrative Coordination Cell & Nodal Officer of AFI drive, Thiruvananthapuram has forwarded an
WP(C) No.42111 of 2023 3 investigation report in respect of M/s Group K enterprises having GST registration falling under the jurisdiction of Tax payer Circle, Pattambi. In the report it was noticed that the registration obtained by the said enterprises was for a fake entity and the place of business given in the application for obtaining GST registration was not functioning. It was also noticed that the tax payer had raised tax invoices and passed fake ITC to certain recepients. The fake Input Tax for Rs.26,16,426/- was obtained by M/s. Latta Innovations Private Limited having GST registration. The petitioner, Latta Innovations Private Limited, who is a taxable person on the rolls of Taxpayer Services Circle Nattika, Thrissur. Considering the Provisions of 86A (1)(a), M/s.
Group K Enterprises being a nonexistent entity, which has passed on fake ITC to the petitioner, the said period have been blocked from utilization against any liability under Section 48 of the CGST/KGST Act 2017.
4.
Considering the aforesaid fact, blocking the utilization of the said Input Tax Credit for an amount of
WP(C) No.42111 of 2023 4 Rs.21,42,172/-, the petitioner has been given opportunity to file a representation before the Joint Commissioner, Taxpayer Services, Thrissur.
Instead of availing the said opportunity, the petitioner has approached this Court by filing this writ petition. This Court finds no ground to entertain such a writ petition. Therefore, the writ petition is hereby dismissed. However, the petitioner is given an opportunity to file a representation before the Joint Commissioner, Taxpayer Services, Thrissur within a period of ten days from today. If such a representation is filed, the Joint Commissioner, Taxpayer Services, Thrissur shall pass an order on the said representation, after hearing to the petitioner.
Sd/- DINESH KUMAR SINGH JUDGE AP
WP(C) No.42111 of 2023 5 APPENDIX OF WP(C) 42111/2023 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ORDER NO-JC-TSR /08 /2023 /A4-DATED 11-10-2023 ISSUED BY THE 3RD RESPONDENT Exhibit-P2 A TRUE COPY OF THE QUANTITATIVE REPORT OF THE TRANSACTION MADE DURING THE RETURN PERIOD 25-03-2022 TO 24-05-2023 Exhibit-P3 A TRUE COPY OF THE PURCHASE TRANSACTIONS DONE WITH GROUP K. ENTERPRISES FOR THE PERIOD 25-03-2022 TO 24-05-2023 Exhibit-P4 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO B48, DATED 12-02- 2022 Exhibit-P5 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- B63 ISSUED FOR INVOICE B48,DATED 28-02-2022 Exhibit-P6 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 78 ,DATED 09-05- 2022 Exhibit-P7 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 99 ,DATED 16-05- 2022 Exhibit-P8 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 305 ,DATED 30-07- 2022 Exhibit-P9 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 397 ,DATED 25-08- 2022 Exhibit-P10 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 575 ,DATED 28-10- 2022 Exhibit-P11 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 616 ,DATED 05-11- 2022 Exhibit-P12 A TRUE COPY OF THE RELEVANT E WAY BILL
WP(C) No.42111 of 2023 6 ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- 617 ,DATED 05-11- 2022 Exhibit-P13 A TRUE COPY OF THE RELEVANT E WAY BILL ALONG WITH INVOICES GENERATED BY GROUP K.
ENTERPRISES INVOICE NO- GEB 040 ,DATED 24- 05-2023 Exhibit-P14 A TRUE COPY OF THE BANK ACCOUNT MAINTAINED AT CANARA BANK BY THE PETITIONER FOR THE PERIOD 01-02-2022 TO 28-06-2022 Exhibit-P15 A TRUE COPY OF THE BANK ACCOUNT STATEMENT MAINTAINED AT HDFC BANK OF THE PETITIONER FOR THE PERIOD 01-08-2022 TO 01-06-2023