Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNESDAY, THE 8TH DAY OF MARCH 2023 / 17TH PHALGUNA, 1944 WP(C) NO. 10778 OF 2019 PETITIONERS:
1 PANACHAMOOTIL MOTORS DEEPAM COMPLEX, KC/XIII-809,KILIKOLLUR P.O, KOLLAM - 691 004, REPRESENTED BY ITS MANAGING PARTNER MR. JITHIN ABRAHAM THOMAS.
2 JITHIN ABRAHAM THOMAS, S/O. ABRAHAM THOMAS, PANACHAMOOTTIL HOUSE, CHENNILODE, MEDICAL COLLGE P.O, THIRUVANANTHAPURAM - 695 011.
BY ADVS.
JOSEPH KODIANTHARA (SR.)
SRI.V.ABRAHAM MARKOS SRI.ABRAHAM JOSEPH MARKOS SRI.ISAAC THOMAS SRI.P.G.CHANDAPILLAI ABRAHAM SHRI.VIPIN ANTO H.M.
SHRI.ALEXANDER JOSEPH MARKOS SHRI.SHARAD JOSEPH KODANTHARA RESPONDENTS:
1 THE COMMISSIONER (AUDIT) O/O THE COMMISSIONER (AUDIT) CENTRAL TAX & CENTRAL EXCISE, CENTRAL REVENUE BUILDING, I.S PRESS ROAD, KOCHI- 682 018.
2 THE COMMISSIONER OF CENTRAL TAX & CENTRAL EXCISE, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM-695 001.
3 THE ASSISTANT COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE (AUDIT), KOLLAM CIRCLE, ST. MARYS BUILDING, KADAPPAKAD, KOLLAM-691 008.
4 THE ASSISTANT COMMISSIONER (AUDIT), CENTRAL TAX AND CENTRAL EXCISE (AUDIT) CENTRAL REVENUE BUILDING, I.S PRESS ROAD, KOCHI-682 018.
WP(C) NO. 10778 OF 2019 2 5 THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE (AUDIT), KOLLAM CIRCLE, ST. MARY’S BUILDING, KADAPPAKAD, KOLLAM - 691 008.
SRI.SREELAL N.WARRIER, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 10778 OF 2019 3 T.R. RAVI, J.
-------------------------------------------- WP(C) No.10778 of 2019 -------------------------------------------- Dated this the 08th day of March, 2023 JUDGMENT The petitioners have challenged Exhibit P4 show cause notice and seeks to quash proposals in paragraph 2 and paragraph 15(i) in the show cause notice. The issue relates to the reversal of the input tax under the Cenvat. On the basis of the orders issued by this Court, the petitioners have already reversed the credit as is seen from Ext.P9.
2.
The respondents have filed a statement. In paragraph 13 it is stated that the Adjudicating Authority can consider the case of the petitioners in the light of the legal position as settled by various judicial pronouncements, if the entire common credit availed is reversed.
3.
Since the reversal has already done all that remains is that the Adjudicating Authority to consider the case of the petitioners. The only other aspect that is pointed out in the
WP(C) NO. 10778 OF 2019 4 statement is that the petitioners may have to pay the applicable interest on the credit that is reversed. The counsel for the petitioners submits that once the Authority adjudicates on the amount to be reversed, then the interest portion can also be remitted.
In view of the above submission, this writ petition is disposed of directing the competent Authority to consider the case of the petitioners in the light of the legal position as settled by various judicial pronouncements and inform the petitioners about the interest that may have to be paid. The process shall be completed within three months from the date of a receipt of a copy of this judgment.
Sd/- T.R.RAVI JUDGE mpm
WP(C) NO. 10778 OF 2019 5 APPENDIX OF WP(C) 10778/2019 PETITIONERS’ EXHIBITS EXHIBIT P1 TRUE COPY OF COMMUNICATION C.NO.
AUDIT/PANCHAMOTTIL MOTORS/2017-18 DATED 13-07-2018 ISSUED BY THE 5TH RESPONDENT TO THE 1ST PETITIONER.
EXHIBIT P2 TRUE COPY OF THE CENVAT CREDIT RULES, 2004.
EXHIBIT P3 TRUE COPY OF THE LETTER/PROCEEDINGS DATED 06-08-2018 ISSUED BY THE 5TH RESPONDENT.
EXHIBIT P4 TRUE COPY OF THE SHOW CAUSE NOTICE NO.
43/2018 ST (C.NO. V/15/32/2018 AUDIT (ADJ.)/760 DATED 12-12-2018 ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P5 TRUE COPY OF THE LETTER DATED 31-12-2018 OF THE 1ST PETITIONER ADDRESSED TO THE 1ST RESPONDENT.
EXHIBIT P6 TRUE COPY OF THE REMINDER LETTER DATED 14-02-2019 ISSUED BY THE 1ST PETITIONER TO THE 1ST RESPONDENT.
EXHIBIT P7 TRUE COPY OF THE LETTER DATED 07-02-2019 ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P8 TRUE COPY OF THE STATEMENT SHOWING TURNOVER, GROSS AND NET PROFITS DURING THE PERIOD COVERED BY EXHIBIT P4 SHOW CAUSE NOTICE.
EXHIBIT P8 TRUE COPY OF THE STATEMENT SHOWING TURNOVER, GROSS AND NET PROFITS DURING THE PERIOD COVERED BY EXHIBIT P4 SHOW CAUSE NOTICE.
EXHIBIT P9 TRUE COPY OF CHALLAN DATED 08/4/2019 EVIDENCING REVERSAL OF CENVAT CREDIT AVAILED AMOUNTING TO RS.35,27,000/-.