Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 1ST DAY OF NOVEMBER 2023 / 10TH KARTHIKA, 1945 WP(C) NO. 39736 OF 2022 PETITIONER:
GEOJIT FINANCIAL SERVICES LIMITED, REGISTERED UNDER THE COMPANIES ACT,1956, HAVING THEIR REGISTERED OFFICE AT 34/659-P, CIVIL LINE ROAD, PADIVATTOM, KOCHI- 682 024. REPRESENTED BY ITS ASSISTANT GENERAL MANAGER-LEGAL MR.LIBU RADHAKRISHNAN, PIN - 682024 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 JOSEPH KODIANTHARA (SR.)
RESPONDENTS:
1 UNION OF INDIA, THROUGH THE MINISTRY OF FINANCE, GOVERNMENT OF INDIA, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI REPRESENTED BY ITS SECRETARY, PIN - 110001 2 GOODS AND SERVICES TAX COUNCIL THOUGH ITS ADDITIONAL SECRETARY, 5TH FLOOR, TOWER 11, JEEVAN BHARTI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110 001., PIN - 110001 3 GOODS AND SERVICES TAX NETWORK A PRIVATE LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT, 2013 HAVING ITS OFFICE AT 4TH FLOOR, EAST WING, WORLD MARK-1, AEROCITY, NEW DELHI REP.BY ITS CHAIRMAN, PIN - 110037 4 STATE OF KERALA THROUGH THE DEPARTMENT OF FINANCE, GOVERNMENT OF KERALA, NORTH BLOCK, SECRETARIAT THIRUVANANTHAPURAM, KERALA REP.BY ITS SECRETARY, PIN - 682031 5 STATE OF TELANGANA, THROUGH THE DEPARTMENT OF FINANCE, GOVERNMENT OF
WP(C) No.39736 of 2022 2 TELANGANA TELANGANA SECRETARIAT, D BLOCK, 3RD FLOOR, SECRETARIAT ROAD, HYDERABAD, TELANGANA REP.BY ITS SECRETARY, PIN - 500022 6 STATE OF ANDHRA PRADESH THROUGH THE CHIEF COMMISSIONER OF STATE TAX, DNO.5-59, R. K. SPRING VALLEY APARTMENTS, BANDAR ROAD, EEDUPUGALLU VILLAGE, KANKIPADU MANDAL, VIJAYAWADA, KRISHNA DISTRICT, PIN - 521151 7 COMMISSIONER OF COMMERCIAL TAXES TELANGANA, C.T COMPLEX, NAMPALLY, HYDERABAD, PIN - 500001 8 JOINT COMMISSIONER OF COMMERCIAL TAXES TELANGANA C.T COMPLEX, NAMPALLY, HYDERABAD, PIN - 500001 9 DEPUTY COMMISSIONER-7 COMMERCIAL INTELLIGENCE UNIT OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES, TELANGANA STATE, NAMPALLY HYDERABAD, PIN - 500001 10 PRINCIPAL COMMISSIONER OF CUSTOMS CENTRAL EXCISE & CUSTOMS, COCHIN, CR BUILDING, I S PRESS ROAD, COCHIN, PIN - 682018 11 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI REP.BY ITS CHAIRMAN, PIN - 110019 BY ADV K.V.SREE VINAYAKAN ADV.SREELAL WARRIER -SC ADV.THUSHARA JAMES – SR.GP- R4 AND R5 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.39736 of 2022 3 JUDGMENT Dated this the 1st day of November, 2023 The present writ petition has been filed by the petitioner for quashing Ext.P3 notice issued by the 9th respondent, which is in the State of Telangana.
2.
The petitioner is a company registered under the Companies Act, having its registered office at 11th floor, 34/659-P Civil Line Road, Padivattom, Kochi, Kerala. The petitioner is a registered dealer under the provisions of the Central Goods and Services Tax Act, 2017 and the Kerala State Goods and Services Tax Act, 2017.
3.
The petitioner has been issued Ext.P3 notice by the Commercial Tax Department, Government of Telangana, Office of the Commissioner of Commercial Taxes. In pursuance to the Economic Intelligence Unit report, wherein certain discrepancies were noticed and notice was issued to the petitioner for payment of taxes on
WP(C) No.39736 of 2022 4 02.05.2022. The petitioner furnished reply to the said notice by two CDs dated 15.06.2022 and 27.07.2022.
On verification of the information furnished by the petitioner for the year 2017-18 to 2021-22, it was noticed that despite the addresses of the customers having been located in the State of Telangana, their turn overs were wrongly reported to the State of Andhra Pradesh and other States which had caused loss of revenue to the State of Telangana. The details of total tax wrongly remitted to Andhra Pradesh under the IGST Head have been mentioned in the tabular form. Similar tabular form, also mentioned that the details of total tax wrongly remitted to other States except Andhra pradesh under the IGST Head.
The petitioner has been asked to explain the reasons for the aforesaid discrepancies as to discharge the liability of Rs.3,04,91,606/-. It was stated that if no explanation would be received by aforesaid date, it will be presumed that the petitioner had nothing to say in the matter and proceedings in accordance with
WP(C) No.39736 of 2022 5 law may be initiated. Learned counsel for the petitioner submitted that the petitioner had submitted Ext.P4, P5, P5(A) replies and later Ext.P6 dated 01.09.2022 to the Principal Commissioner of Customs, Central GST & Central Excise stating that the petitioner had already paid IGST and the direction in the notice to pay the tax would result in double taxation.
4.
Ext.P3 show cause notice cannot be said to be without jurisdiction or against the law. The petitioner had already filed reply to the said show cause notice. This Court does not find any ground to keep this writ petition pending on the files when the reply to the show cause notice has already been filed.
5.
In view thereof, the present writ petition is disposed of with a direction to the 9th respondent to consider the replies filed to the impugned show cause notice (Ext.P3) and pass an order in accordance with law. Till decision is taken on the show cause notice, the petitioner shall not be forced to pay the tax as
WP(C) No.39736 of 2022 6 demanded in the impugned show cause notice.
Needles to say, the petitioner shall be heard before taking a final decision in the impugned show cause notice. The petitioner shall be free to raise all the objections and produce all the relevant documents and evidence in support of his contention. The 9th respondent shall expedite the proceedings and pass final order on the show cause notice within a period of two month, in accordance with law.
With the aforesaid direction, the present writ petition stands finally disposed of.
Sd/- DINESH KUMAR SINGH JUDGE AP
WP(C) No.39736 of 2022 7 APPENDIX OF WP(C) 39736/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE E-MAIL NOTICE DATED 02.05.2022 ISSUED BY THE 9TH RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE RESPONSE DATED 11.05`.2022 OF THE PETITIONER TO EXHIBIT P1 NOTICE ISSUED BY RESPONDENT NO. 9.
Exhibit P3 TRUE COPY OF THE E-MAIL NOTICE DATED 04.08.2022 ISSUED BY THE 9TH RESPONDENT TO THE PETITIONER.
Exhibit P4 TRUE COPY OF THE RESPONSE DATED 17.08.2022 FILED BY THE PETITIONER TO EXHIBIT P3 BEFORE 9TH RESPONDENT.
Exhibit P5 TRUE COPY OF THE LETTER DATED 30.08.2022 FILED BY THE PETITIONER BEFORE 9TH RESPONDENT WITHOUT ENCLOSURES.
Exhibit P5(a) TRUE COPY OF THE LETTER DATED 30.08.2022 FILED BY THE PETITIONER BEFORE 9TH RESPONDENT WITHOUT ENCLOSURES.
Exhibit P6 TRUE COPY OF THE LETTER DATED 01.09.2022 FILED BY THE PETITIONER BEFORE THE 10TH RESPONDENT.
Exhibit P7 TRUE COPY OF THE SCREEN SHOT OF THE EMAIL DATED 13.09.2022 OF THE PETITIONER ADDRESSED TO THE 3RD RESPONDENT Exhibit P7(a) TRUE COPY OF THE AUTOMATED RESPONSE DATED 13.09.2022 FROM THE 3RD RESPONDENT TO THE PETITIONER.