Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 17TH DAY OF NOVEMBER 2023 / 26TH KARTHIKA, 1945 WP(C) NO. 37764 OF 2023 PETITIONER:
THE SOUTH INDIA BANK LTD S.I.B HOUSE, T.B. ROAD, P.B. NO. 28, THRISSUR, PIN – 680 001 KERALA REPRESENTED BY ITS AUTHORISED SIGNATORY BY ADVS.
SHAJI THOMAS MOHAN PULIKKAL JEN JAISON THOMASKUTTY SEBASTIAN RESPONDENTS:
1 UNION OF INDIA THROUGH THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NO. 137, NORTH BLOCK, NEW DELHI, PIN – 110 001.
2 STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT OF KERALA, FINANCE DEPARTMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695 001.
3 ADDITIONAL COMMISSIONER OFFICE OF THE COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN – 682 018.
OTHER PRESENT:
RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 37764 OF 2023 2 DINESH KUMAR SINGH, J.
-------------------------------------------- WP(C) NO. 37764 OF 2023 -------------------------------------------- Dated this the 17th day of November, 2023 J U D G M E N T 1.
The petitioner is a private scheduled bank registered under the Banking Regulation Act.
Petitioner has been served with impugned show cause notice in Ext.P1 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.
WP(C) NO. 37764 OF 2023 3 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 notice. He further submitted that Delhi High Court is also hearing the matter.
4.
Since the petitioner has approached this Court only against the show cause notice, this Court is not inclined to interfere 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
WP(C) NO. 37764 OF 2023 4 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 shall 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 11.12.2023 for oral hearing.
6.
With the aforesaid directions, the present writ petition is disposed of.
Sd/- DINESH KUMAR SINGH JUDGE rpr
WP(C) NO. 37764 OF 2023 5 APPENDIX OF WP(C) 37764/2023 PETITIONER’S EXHIBITS Exhibit P1 TRUE PHOTOCOPY OF THE SHOW CAUSE NOTICE NO.
11/2023-24/GST/(ADC) DATED 28.09.2023 ISSUED BY THE RESPONDENT NO. 3 Exhibit P2 TRUE PHOTOCOPY OF THE GST REGISTRATION CERTIFICATE DATED 2.11.2020 Exhibit P3 TRUE PHOTOCOPY OF THE ORDER IN W.P (C) NO.
15847/2020 DATED 05.08.2020 Exhibit P4 TRUE PHOTOCOPY OF THE SUMMONS DATED 18.10.2019 ISSUED BY THE SUPERINTENDENT, OFFICE OF THE ASSISTANT COMMISSIONER, THRISSUR DIVISION Exhibit P5 TRUE PHOTOCOPY OF THE RESPONSE OF THE CHIEF FINANCIAL OFFICER OF THE PETITIONER BANK DATED 21.10.2019 Exhibit P6 TRUE PHOTOCOPY OF THE LETTER NO. 50/2021 DATED 05.08.2021 ISSUED BY THE SUPERINTENDENT, OFFICE OF THE ASSISTANT COMMISSIONER, THRISSUR DIVISION Exhibit P7 TRUE PHOTOCOPY OF THE LETTERS OC NO. 163/2022 DATED 06.09.2022 SENT TO THE PETITIONER FROM THE OFFICE OF THE SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE, THRISSUR RANGE Exhibit P8 TRUE PHOTOCOPY OF THE LETTERS OC NO. 177/2021 DATED 28.12.2021 SENT TO THE PETITIONER FROM THE OFFICE OF THE SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE, THRISSUR RANGE Exhibit P9 TRUE PHOTOCOPY OF THE RESPONSE OF THE PETITIONER DATED 24.08.2023 SENT TO THE SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE, THRISSUR RANGE Exhibit P10 TRUE PHOTOCOPY OF THE RESPONSE OF THE PETITIONER DATED 24.11.2021 SENT TO THE SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE, THRISSUR RANGE Exhibit P11 TRUE PHOTOCOPY OF THE RESPONSE OF THE PETITIONER DATED 12.04.2022 SENT TO THE SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE, THRISSUR RANGE Exhibit P12 TRUE PHOTOCOPY OF THE EMAIL SENT TO
WP(C) NO. 37764 OF 2023 6 SUPERINTENDENT OF CENTRAL TAX & CENTRAL EXCISE , THRISSUR RANGE ON 24.11.2021 Exhibit P13 TRUE PHOTOCOPY OF FORM GST DRC-01A DATED 08.09.2023 ISSUED BY THE 3RD RESPONDENT Exhibit P14 TRUE PHOTOCOPY OF THE RESPONSE FROM THE PETITIONER DATED 27.09.2023 Exhibit P15 TRUE PHOTOCOPY OF THE FREQUENTLY ASKED QUESTIONS ON BANKING, INSURANCE AND STOCK BROKERS SECTORS UPDATED AS ON 27.12.2018 Exhibit P16 TRUE PHOTOCOPY OF THE CIRCULAR NO.178/10/2022-GST [F. NO. 190354/176/2022- TRU] DATED 03.08.2022