Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BASANT BALAJI THURSDAY, THE 25TH DAY OF JULY 2024 / 3RD SRAVANA, 1946 WP(C) NO. 9422 OF 2021 PETITIONER:
VINAYAKA CASHEW COMPANY MANGAD, KOLLAM REP.BY ITS MANAGING PARTNER, B. MOHANACHANDRAN NAIR.
BY ADVS. SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS:
1 THE STATE TAX OFFICER II CIRCLE, STATE GOODS AND SERVICES TAX DEPARTMENT, KOLLAM 691 001.
2 THE JOINT COMMISSIONER (APPEALS) STATE GOODS AND SERVICES TAX DEPARTMENT, KOLLAM 691 001.
3 STATE OF KERALA REP.BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM 695 001.
OTHER PRESENT:
GP SRI SAYED M. THANGAL THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WPC 9422/2021 -2- JUDGMENT (Dated this the 25th day of July 2024) The petitioner is an assessee under the Central Sales Tax Act, 1956. For the year 2015-16, the petitioner has filed the return. The 1st respondent completed the assessment under Rule 6(5) of the CST (Kerala) Rules, 1957, and by Ext.P1 order dated 21.12.2020, raised a demand of Rs.33,57,420/- for the year 2015-16. The petitioner filed an appeal under Section 55 of the Kerala Value Added Tax Act before the 2nd respondent. While filing the appeal, the petitioner has to remit the court fee at the rate of 0.5% to the Kerala Legal Benefit Fund, and the petitioner has satisfied the above by remitting 0.5% towards the Legal Benefit Fund. Now the 2nd respondent has informed that the petitioner has to remit the fee at 1% instead of 0.5% by relying on Ext.P3 notification (SRO 315/16 dated 07.04.2016). The counsel for the petitioner submits that this enhancement is given only prospective operation from 01.04.2016, so the insistence is illegal, arbitrary, and unjustified.
WPC 9422/2021 -3- 2.
Therefore, the petitioner approached this Court seeking a direction to the 2nd respondent to consider Ext.P2 appeal on merits without demanding balance court fee towards the Kerala Legal Benefit Fund; and to quash Ext.P3 notification in so far as it proposes to impose enhanced court fee in respect of assessments for years up to 2015-16.
3.
I have heard the counsel for the petitioner as well as the Government Pleader for respondents.
4.
The counsel for the petitioner has made available the judgment dated 17.09.2021 of this Court in W.P.(C) No.27245 of 2019, wherein similar issue has been considered by this Court. The relevant portion of the said judgment reads thus:
“5.
It is true that the statute now mandates the amount to be paid to the Kerala Legal Benefit Fund as 1% of the disputed tax amount, by virtue of the amendment dated 07.04.2016. This Court has held, through series of judgments, that the amendment is prospective.
6. In view of the judgment in O.P.(Tax) No.2/2017, it will suffice if the petitioner remits 0.5% of the disputed tax to the Kerala Legal Benefit Fund and also furnishes a personal bond without sureties before the Assessing Authority undertaking to pay the balance amount due under the Kerala Legal Benefit
WPC 9422/2021 -4- Fund, if the issue is ultimately found against the petitioner. On furnishing the bond as directed above and on payment of 0.5% of the disputed tax to the Kerala Legal Benefit Fund (if not already paid) within four weeks from today, the appellate authority shall number the appeal and consider the same on merits, in accordance with law.” Therefore, the petitioner herein is also entitled to the same treatment as that of the petitioner in W.P.(C) No.27245 of 2019.
Hence the writ petition is disposed of in terms of the judgment dated 17.09.2021 in W.P.(C) No.27245 of 2019.
Sd/- BASANT BALAJI JUDGE JS
WPC 9422/2021 -5- APPENDIX OF WP(C) 9422/2021 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 (CST) EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE 2ND RESPONDENT FOR THE YEAR 2015-16 (CST) EXHIBIT P3 COPY OF NOTIFICATION IS ISSUED BY THE 3RD RESPONDENT.
EXHIBIT P4 COPY OF ORDER OF THIS HON'BLE COURT IN WP(C) NO.27245/19.