Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 1ST DAY OF DECEMBER 2023 / 10TH AGRAHAYANA, 1945 WP(C) NO. 40126 OF 2023 PETITIONER:
THE CSB BANK LTD.
CSB BHAVAN, ST. MARY'S COLLEGE ROAD, THRISSUR REPRESENTED BY ITS MANAGING DIRECTOR AND CEO, MR.
PRALAY MONDAL., PIN – 680 020.
BY ADVS.
ABRAHAM JOSEPH MARKOS V.ABRAHAM MARKOS ISAAC THOMAS P.G.CHANDAPILLAI ABRAHAM ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA JOHN VITHAYATHIL AIBEL MATHEW SIBY RESPONDENTS:
1 UNION OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI REPRESENTED BY ITS SECRETARY, PIN – 110 001.
2 ADDITIONAL COMMISSIONER CENTRAL TAX AND CENTRAL EXCISE, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI ., PIN – 682 018.
3 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI. REPRESENTED BY ITS AUTHORISED OFFICER, PIN – 110 001.
4 COMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE C.R. BUILDING, I.S. PRESS ROAD, COCHIN, PIN – 682 018.
5 THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE CHEMBUKKAVU RANGE, C.R. BUILDING, THRISSUR, PIN – 680 001.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 40126 OF 2023 2 DINESH KUMAR SINGH, J.
-------------------------- W.P.(C) No.40126 of 2023 ------------------------- Dated this the 1st day of December, 2023 JUDGMENT 1.
The petitioner is a Banking Company registered under the Banking Regulation Act, 1949. Petitioner has been served with impugned show cause notice in Exhibit P-1 demanding GST on some allegedly taxable services.
2.
The learned Counsel for the petitioner submits that the GST which has been demanded in the Show Cause Notice for the services which are not taxable under the GST regime, and therefore, the demand raised in the show cause notice is wholly illegal and against the provisions of the Central Goods and Service Tax Act/Kerala Goods and Service Tax Act, 2017 and Rules made thereunder.
3.
The learned counsel for the petitioner also submits that there are several writ petitions filed before various high courts in the country challenging similar show cause notices and karnataka high court has heard and reserved the judgment in respect of the similar Show Cause Notices.
He further submitted that Delhi High Court is also hearing the matter.
WP(C) NO. 40126 OF 2023 3 4.
Since the petitioner has approached this Court only against the show cause notice, this court is not inclined to interfere in this writ petition when the petitioner has opportunity to raise objections on all possible grounds against the demand of GST in the Show Cause Notice before the authority concerned.
5.
In view thereof, the petitioner is provided ten days opportunity to file a reply in response to the Show Cause Notice and participate in the adjudication proceedings. Since one of the High Courts has reserved the Judgment as per learned Counsel for the petitioner, it would be appropriate and in the interest of justice that the adjudicating authority should not pass final order for a period of one month. In case, the judgment of any other High Court is delivered in the meantime, the petitioner would be free to bring it to the notice of the adjudicating authority for passing the final order. The petitioner, after filing the response in reply to the Show Cause Notice within a period of ten days, should appear before the adjudicating authority on 18.12.2023 for oral hearing.
With the aforesaid directions, the present writ petition is disposed of.
Sd/-
DINESH KUMAR SINGH JUDGE Svn
WP(C) NO. 40126 OF 2023 4 APPENDIX OF WP(C) 40126/2023 PETITIONER’S EXHIBITS Exhibit P1 TRUE COPY OF SHOW CAUSE NOTICE HAVING NO.
14/2023-24//GST (ADC) DATED 28.09.2023 ISSUED BY THE 2ND RESPONDENT WITHOUT ANNEXURES.
Exhibit P2 TRUE COPY OF THE INTERIM ORDER DATED 10.02.2021 IN W.P.(C) NO. 3438 OF 2021.
Exhibit P3 TRUE COPY OF THE JUDGEMENT DATED 17.11.2023 PASSED BY THIS HON'BLE COURT IN W.P. (C) NO.
37764 OF 2023.
Exhibit P4 TRUE COPY OF CBIC'S REPLY IN THE FAQ ON BANKING INSURANCE AND STOCK BROKERS UPDATED AS ON 27.12.2018.
Exhibit P5 TRUE COPY OF CIRCULAR NO. 178/10/2022-GST DATED 03.08.2022 DEPARTMENT OF REVENUE, MINISTRY OF FINANCE.