Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WP(C) NO. 30855 OF 2022 PETITIONER:
SURYANSH BROADCASTING PVT. LTD.
B6, ABM TOWER, KADAVANTHARA, ERNAKULAM, PIN – 682 020.
REPRESENTED BY ITS MANAGER DIRECTOR, BY ADV K.J.MANU RAJ RESPONDENTS:
1 THE SUPERINTENDENT OFFICE OF THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE, GST BHAVAN, KATHRIKADAVU, KALOOR, KOCHI, PIN – 682 017.
2 THE COMMISSIONER OF CENTRAL TAXES AND CENTRAL EXCISE COCHIN COMMISSIONERATE, CENTRAL EXCISE BHAVAN, IS PRESS ROAD, ERNAKULAM, PIN – 682 016.
3 THE DEPUTY COMMISSIONER CENTRAL TAX AND CENTRAL EXCISE, ERNAKULAM DIVISION, 4TH FLOOR, CENTRAL EXCISE BHAVAN, KATHRIKADAVU, KOCHI, PIN – 682 017.
OTHER PRESENT:
ADV. P R SREEJITH (SC- CENTRAL BOARD OF EXCISE )) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WP(C) NO. 29584 OF 2022 PETITIONER:
M/S. SURYANSH BROADCASTING PVT. LTD.
B6, ABM TOWER, KADAVANTHARA, ERNAKULAM, PIN – 682 020.
REPRESENTED BY ITS MANAGER DIRECTOR.
BY ADV K.J.MANU RAJ RESPONDENTS:
1 THE SUPERINTENDENT OFFICE OF THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE, GST BHAVAN, KATHRIKADAVU, KALOOR, KOCHI, PIN – 682 017.
2 THE COMMISSIONER OF CENTRAL TAXES AND CENTRAL EXCISE COCHIN COMMISSIONERATE, CENTRAL EXCISE BHAVAN, IS PRESS ROAD, ERNAKULAM, PIN – 682 016.
3 THE DEPUTY COMMISSIONER CENTRAL TAX AND CENTRAL EXCISE, ERNAKULAM DIVISION, 4TH FLOOR, CENTRAL EXCISE BHAVAN, KATHRIKADAVU, KOCHI, PIN – 682 017.
BY ADVS.
SREELAL N. WARRIER, SC, CENTRAL BOARD OF EXCISE SREEJITH P. R THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 3 JUDGMENT [WP(C) Nos.30855/2022, 29584/2022] The petitioner is common in both the writ petitions. The petitioner faces demand for payment of interest on account of belated payment of tax under the Goods and Services Tax Acts. The demand being substantial, through the order marked as Ext.P6 in both the writ petitions, the petitioner was granted the liberty of payment of the amount in installments under Section 80 of the Central Goods and Services Tax/ State Goods and Services Tax Act (CGST/SGST Act). On the failure of the petitioner to comply with the time lines in Ext.P6, garnishee proceedings were initiated against the third parties from whom money was due to the petitioner. These writ petitions challenge those garnishee proceedings.
2.
These writ petitions came up for admission before this Court on different dates and this Court granted an interim order against the garnishee proceedings recording the undertaking given by the petitioner that the petitioner will comply with the stipulations in Ext.P6 without any further default. It is submitted that the installments as permitted in
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 4 Ext.P6 are now up to date and that the petitioner will continue to discharge the liability in terms of Ext.P6.
3.
The learned counsel appearing for the respondent department would submit that there is absolutely no illegality in the garnishee proceedings. He would submit with reference to the proviso to Section 80 of the CGST/SGST Acts that where a liberty is granted to pay the amount due in installments, the failure to comply with the stipulations in the order granting installments will result in the entire amount becoming due and recoverable. It is submitted that taking into consideration the provisions of Section 80 and in particular the proviso, the petitioner is not entitled to any relief.
4.
Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent department and purely as a matter of indulgence these writ petitions will stand allowed and the garnishee proceedings initiated against the petitioner will stand quashed, taking into consideration the submission of the learned counsel appearing for the petitioner that all the installments have been paid upto date (though belatedly), and also taking into consideration the
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 5 submission that the balance of the amounts payable in terms of Ext.P6 shall be remitted without any further default. I make it clear the if the petitioner commits any further default it will be open to the respondent department to proceed against the petitioner for recovery of the entire amount in terms of the proviso of Section 80 of the CGST/SGST Act.
These writ petitions are disposed of as above.
Sd/- GOPINATH P.
JUDGE ats
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 6 APPENDIX OF WP(C) 30855/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 30/11/2021 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE REPLY LETTER DATED 22/12/2021 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P3 TRUE COPY OF THE LETTER DATED 05/01/2022 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT Exhibit P4 TRUE COPY OF THE LETTER DATED 08/02/2022 DULY ACKNOWLEDGED BY THE 2ND RESPONDENT Exhibit P5 TRUE COPY OF THE LETTER DATED 24/03/2022 DULY ACKNOWLEDGED ON 25/03/2022 BY THE 3RD RESPONDENT Exhibit P6 TRUE COPY OF THE ORDER DATED 03/06/2022 ISSUED BY THE 1ST RESPONDENT Exhibit P7 TRUE COPY OF THE LETTER DATED 13/06/2022 Exhibit P8 TRUE COPY OF THE GARNISHEE NOTICE ISSUED TO M/S.
INSIGHT MEDIA CITY (INDIA) PVT. LTD. DATED 29/07/2022 Exhibit P9 TRUE COPY OF THE GARNISHEE NOTICE ISSUED TO M/S.
DEN NETWORKS LTD. DATED 29/07/2022 Exhibit P10 TRUE COPY OF THE LETTER DATED 24/08/2022 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT ALONG WITH THE RECEIPTS OF PAYMENTS Exhibit P11 TRUE COPY OF THE INTERIM ORDER DATED 16/09/2022 IN WP(C) 29584/2022 Exhibit P12 TRUE COPY OF THE CHALAN WITNESSING THE REMITTANCE FOR THE MONTH OF SEPTEMBER Exhibit P13 TRUE COPY OF THE GARNISHEE NOTICE DATED 29/07/2022 ISSUED BY THE 3RD RESPONDENT TO M/S.
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 7 TATA PLAY LTD.
Exhibit P14 TRUE COPY OF THE GARNISHEE NOTICE DATED 29/07/2022 ISSUED BY THE 3RD RESPONDENT TO M/S.
BHARATI TELEMEDIA LTD.
Exhibit P15 TRUE COPY OF THE GARNISHEE NOTICE DATED 29/07/2022 ISSUED BY THE 3RD RESPONDENT TO M/S.
SUN DIRECT TV PVT. LTD.
Exhibit P16 TRUE COPY OF THE GARNISHEE NOTICE DATED 29/07/2022 ISSUED BY THE 3RD RESPONDENT TO M/S.
DISH TV INDIA LTD.
W.P.(C)No.30855/2022 & W.P.(C)No.29584/2022 8 APPENDIX OF WP(C) 29584/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 30/11/2021 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE REPLY LETTER DATED 22/12/2021 ISSUED BY THE PETITIONER TO THE 1ST RESPONDENT Exhibit P3 TRUE COPY OF THE LETTER DATED 05/01/2022 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT Exhibit P4 TRUE COPY OF THE LETTER DATED 08/02/2022 DULY ACKNOWLEDGED BY THE 2ND RESPONDENT Exhibit P5 TRUE COPY OF THE LETTER DATED 24/03/2022 DULY ACKNOWLEDGED ON 25/03/2022 BY THE 3RD RESPONDENT Exhibit P6 TRUE COPY OF THE ORDER DATED 03/06/2022 ISSUED BY THE 1ST RESPONDENT Exhibit P7 TRUE COPY OF THE LETTER DATED 13/06/2022 Exhibit P8 TRUE COPY OF THE GARNISHEE NOTICE ISSUED TO M/S. INSIGHT MEDIA CITY (INDIA) PVT. LTD.
DATED 29/07/2022 Exhibit P9 TRUE COPY OF THE GARNISHEE NOTICE ISSUED TO M/S. DEN NETWORKS LTD. DATED 29/07/2022 Exhibit P10 TRUE COPY OF THE LETTER DATED 24/08/2022 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT ALONG WITH THE RECEIPTS OF PAYMENTS