M/S. Okkal Service Co-Operative Bank LTD. vs. The Intelligence Officer
Facts
The petitioner, M/s. Okkal Service Co-operative Bank Ltd., a society registered under the Kerala Co-operative Societies Act, 1969, and also under the CGST/SGST Acts, 2017, filed a writ petition challenging a summons (Ext.P1) issued by the Intelligence Officer, State Goods & Services Tax Department. The summons, dated July 12, 2023, required the petitioner to produce details of its chitties (MDSs), commission, audit reports, income tax returns, and balance sheets for the period from July 1, 2017, to March 31, 2023. The petitioner's preliminary objection was that its activities, specifically conducting chitties among its members and the securities provided, do not fall under the CGST/SGST regime, and therefore, it is not liable to collect or pay GST.
Held
The Court disposed of the writ petition by directing the petitioner to produce all the documents required by the summons (Ext.P1) within seven days. Upon production of these documents, the first respondent (Intelligence Officer) is directed to first hear the petitioner on its preliminary objection concerning the applicability of the CGST/SGST regime to the petitioner Society. After deciding this preliminary issue, the Authority will proceed with the matter in accordance with the law. The Court did not decide the substantive issue of GST applicability but ensured it would be addressed by the Authority.
Key Issues
1. Whether the preliminary objection raised by the petitioner regarding the applicability of the CGST/SGST regime on its activities, particularly the conduct of chitties and related securities, is a valid contention that needs to be decided before proceeding with the summons. (Question of law) Petitioner's arguments: The petitioner contended that its operations, specifically chitties and securities, are outside the purview of the CGST and SGST Acts, and thus, it is not liable to collect and pay GST. They sought a decision on this preliminary issue before complying with the summons. Revenue's arguments: The respondent, represented by the Government Pleader, did not contest the petitioner's request for a decision on the preliminary issue. Instead, they requested a time limit for the petitioner to produce the documents as per the summons and urged the Authority to decide the issue in a time-bound manner.
Sections Cited
CGST Act, SGST Act
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 29TH DAY OF SEPTEMBER 2023 / 7TH ASWINA, 1945 WP(C) NO. 31692 OF 2023 PETITIONER/S: M/S. OKKAL SERVICE CO-OPERATIVE BANK LTD. II/435, OKKAL P.O., PERUMBAVOOR, ERNAKULAM DISTRICT, REPRESENTED BY ITS SECRETARY, ANJU T.S., PIN - 683550 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENT/S: 1 THE INTELLIGENCE OFFICER INTELLIGENCE UNIT, STATE GOODS & SERVICES TAX DEPARTMENT, 2ND FLOOR, MINI CIVIL STATION, MUVATTUPUZHA, ERNAKULAM DISTRICT, PIN - 686669 2 STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 OTHER PRESENT: SMT.RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 31692 OF 2023 2 J U D G M E N T The present writ petition has been filed by the petitioner, who claims to be a Co-operative Society registered under the provisions of the Kerala Co-operative Societies Act, 1969. The petitioner has also obtained registration under the provisions of the CGST/SGST
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