Sowparnika Projects And Infrastructure (P) LTD. vs. The State Tax Officer (Intelligence) - Kerala High Court, 29 August 2019

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI THUR AY, THE 29TH DAY OF AUGUST 2019 / 7TH BHADRA, 1941 WP(C).No.20066 OF 2019(G) PETITIONER: M/S.SOWPARNIKA PROJECTS, VETTAKULAM ARKADE,OPPOSITE MAR IVANIOUS COLLEGE MAIN GATE,THIRUVANANTHAPURAM, REPRESENTED BY AMBILY BALAKRISHNAN, AUTHORISED SIGNATORY. BY ADV. SRI.JOSE JOSEPH RESPONDENT: THE STATE TAX OFFICER(INTELLIGENCE), STATE GST DEPARTMENT,KERALA, THIRUVANANTHAPURAM,AT NEYYATTINKARA-695 121 BY DR. THUSHARA JAMES, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.08.2019, ALONG WITH WP(C).20063/2019(G), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).Nos.20066 & 20063 OF 2019(G) 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI THUR AY, THE 29TH DAY OF AUGUST 2019 / 7TH BHADRA, 1941 WP(C).No.20063 OF 2019(G) PETITIONER: M/S.SOWPARNIKA PROJECTS AND INFRASTRUCTURE (P) LTD., VETTAKULAM ARKADE, OPPOSITE MAR IVANIOUS COLLEGE MAIN GATE, THIRUVANANTHAPURAM, REPRESENTED BY AMBILY BALAKRISHNAN, AUTHORISED SIGNATORY. BY ADV. SRI.JOSE JOSEPH RESPONDENT: THE STATE TAX OFFICER (INTELLIGENCE), STATE GST DEPARTMENT, KERALA, THIRUVANANTHAPURAM, AT NEYYATTINKARA- 695121. BY DR. THUSHARA JAMES, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.08.2019, ALONG WITH WP(C).20066/2019(G), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).Nos.20066 & 20063 OF 2019(G) 3 JUDGMENT Heard Sri. Jose Joseph, the learned counsel for the petitioners and the learned Government Pleader for the respondent.

The petitioners pray for the following reliefs in both the writ petitions:- "(i) To direct the 1st respondent to grant credit for the tax deducted at source while making payments to the petitioner herein as evidenced by Exts.P1 and P1(o) by the issue writ of mandamus or such other writ or order or direction. (ii) To direct the 1st respondent to pass orders on exhibits P4 and P5 applications as expeditiously as possible by the issue of a writ of mandamus or such other writ or order or direction. (iii) To grant the petitioner such other incidental reliefs including the costs of these proceedings."

The petitioners challenge Exts. P9 to P11 orders made under Section 67(1) of the Kerala Value Added Tax Act, 2003 as illegal and violative of principles of natural justice. This aspect of matter is explained in paragraph 7 of the counter affidavit. It is well settled that the order impugned is sustained from the reasoning given in the impugned order, but not from

WP(C).Nos.20066 & 20063 OF 2019(G) 4 the reply in counter affidavit. The record can be produced to show that principles of natural justice are not vitiated.

I have considered the rival submissions and perused the record. With a view to giving quietus to the issue, I am convinced that the orders in Exts.P9 to P11 could be set aside as violative of principles of natural justice and restore the matter to the file of the respondent for disposal in accordance with law.

The writ petitions are disposed of by this order:- a) Exts. P9 to P11 orders are set aside and the matter is remitted back to the respondent. b) The petitioners accompanied by a copy of this judgment appears on 19.09.2019 before the respondent. c) The respondent either on 19.09.2019 or on any other date, the matter stands posted and intimated to the petitioners considers and disposes of the penalty proceedings.

WP(C).Nos.20066 & 20063 OF 2019(G) 5 d) The penalty proceedings are completed on or before 25.10.2019. S.V.BHATTI JUDGE DCS

WP(C).Nos.20066 & 20063 OF 2019(G) 6 APPENDIX OF WP(C) 20066/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF INVOICE U/S 67(1)OF THE KVAT ACT FOR THE YEAR 2014-15 EXHIBIT P2OF THE NOTICE U/S 67(1)OF THE KVAT ACT FOR THE YEAR 2015-16 EXHIBIT P3OF NOTICE U/S 67(1)OF THE KVAT ACT FOR THE YEAR 2016-17 EXHIBIT P4OF NOTICE U/S 67(1)OF THE KVAT ACT FOR THE YEAR 2016-17 EXHIBIT P5OF PROCEEDINGS OF THE RESPONDENT EXHIBIT P6OF THE PROCEEDINGS OF THE RESPONDENT EXHIBIT P7OF PETITIONER'S LETTER EXHIBIT P8OF PETITIONER'S E-MAIL TO THE RESPONDENT EXHIBIT P9OF THE ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2014-15 WITH NOTICE OF DEMAND EXHIBIT P10OF ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2015-16 WITH NOTICE OF DEMAND EXHIBIT P11OF ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2016-17 WITH NOTICE OF DEMAND.

WP(C).Nos.20066 & 20063 OF 2019(G) 7 APPENDIX OF WP(C) 20063/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF NOTICE U/S67(1) OF THE KVAT ACT FOR THE YEAR 2014-15 DATED 21.12.2018. EXHIBIT P2OF NOTICE U/S67(1) OF THE KVAT ACT FOR THE YEAR 2015-16 DATED 21.12.2018. EXHIBIT P3OF NOTICE U/S67(1) OF THE KVAT ACT FOR THE YEAR 2016-17 DATED 21.12.2018. EXHIBIT P4OF LETTER TO THE RESPONDENT, DATED 24.01.2019. EXHIBIT P5OF PROCEEDINGS OF THE RESPONDENT, DATED 25.1.2019. EXHIBIT P6OF PROCEEDINGS OF THE RESPONDENT, DATED 12.02.2019. EXHIBIT P7OF PETITIONER'S LETTER, DATED 12.02.2019. EXHIBIT P8OF PETITIONER'S E-MAIL TO THE RESPONDENT, DATED 26.02.2019. EXHIBIT P9OF ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2014-15 WITH NOTICE OF DEMAND, DATED 12.03.2019. EXHIBIT P10OF ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2015-16 WITH NOTICE OF DEMAND, DATED 12.03.2019. EXHIBIT P11OF ORDER OF THE RESPONDENT LEVYING PENALTY FOR THE YEAR 2016-17 WITH NOTICE OF DEMAND, DATED 12.03.2019.