M/S Manappuram Jewellers LTD. vs. The State Tax Officer (Ib)
Held
The Court held that the petitioner was denied a reasonable opportunity of hearing, constituting a breach of natural justice, as the adjournment request was not properly addressed and only three days were given to respond to a substantial penalty. Therefore, the impugned penalty order was quashed.
Facts
The petitioner received a revised show cause notice under Section 67 of the KVAT Act for suppressed turnover, with only three days to file objections. Despite requesting a three-month adjournment due to voluminous data, the request was not properly considered, and a final penalty order of Rs. 21.79 crores was issued.
Key Issues
Whether the tax authorities provided a proper opportunity of hearing to the petitioner before imposing a penalty, specifically regarding the consideration of an adjournment request and adherence to principles of natural justice.
Sections Cited
Section 67 of the Kerala Value Added Tax Act, 2003
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR THURSDAY, THE 08TH DAY OF APRIL 2021 / 18TH CHAITHRA, 1943 WP(C).No.8931 OF 2021(N) PETITIONER: M/S MANAPPURAM JEWELLERS LTD. 4/522, 1ST FLOOR, MANAPPURAM HOUSE, VALAPPAD P.O.THRISSUR-680 567, REPRESENTED BY ITS CHIEF FINANCIAL OFFICER, BASANT BHASKAR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE STATE TAX OFFICER (IB) SGST DEPARTMENT, THRISSUR-680 004. 2 THE COMMISSIONER OF STATE TAX, STATE GST DEPARTMENT, TAX TOWERS, KILLIPPALAM, KARAMANA, THIRUVANANTHAPURAM-695 002. SMT. THUSHARA JAMES, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.8931 OF 2021(N) 2 JUDGMENT Dated this the 8th day of April 2021 Heard the learned counsel for the petitioner and the learned Government Pleader takes who notice for respondents No. 1 and 2. 2. The learned counsel for the petitioner drew my attention to the showcause notice at Ext.P1 dated 02.03.2021 issued under Section 67 of the KVAT Act and submitted that the respondent Department has revised the showcause notice by issuing another
The judgment continues below.
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