M/S Offshore Infrastructures LTD vs. The State Of Kerala
Original PDF →IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 4TH DAY OF NOVEMBER 2022 / 13TH KARTHIKA, 1944 WP(C) NO. 26447 OF 2022 PETITIONER: M/S OFFSHORE INFRASTRUCTURES LTD SREEHARI, MPRA 12, EROOR WEST P.O, THRIPUNITHURA, PIN – 682 306 REPRESENTED BY IT'S HR CUM ADMIN OFFICER MR. LINIT GEORGE, BY ADVS. K.LATHA JOMTON F. PAYANKAN RESPONDENTS: 1 THE STATE OF KERALA REPRESENTED BY CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695 002 2 THE ASSISTANT COMMISSIONER (WORKS CONTRACT) OFFICE OF THE DEPUTY COMMISSIONER COMMERCIAL TAXES, CLAS TOWER, 2ND FLOOR, OLD RAILWAY STATION ROAD, ERNAKULAM, PIN – 682 018. 3 THE DEPUTY COMMISSIONER, (WORKS CONTRACT) ATTACHED TO THE OFFICE OF THE JOINT COMMISSIONER, STATE GOODS AND SERVICES TAX DEPARTMENT, CLAS TOWER, 2ND FLOOR, OLD RAILWAY STATION ROAD, ERNAKULAM, PIN – 682 018. 4 THE INSPECTING ASST. COMMISSIONER STATE GOODS AND SERVICES TAX DEPARTMENT, KAKKANAD, ERNAKULAM, PIN – 682 030. W.P.(C)No.26447/2022 2 OTHER PRESENT: ADV. THUSHARA JAMES, SR. GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C)No.26447/2022 3 JUDGMENT The petitioner has approached this Court challenging Ext.P8 order of assessment for the assessment year 2016-2017 under the provisions of the Kerala Value Added Tax Act, 2003. 2. It is the case of the petitioner that a huge liability of Rs.63.22 Crores (Rs.63,22,71,533/-) has been imposed on the petitioner without affording to the petitioner a proper opportunity to take part of the assessment proceedings. It is submitted that if the petitioner was able to take part of the assessment proceedings there would have been absolutely no liability on the petitioner as major part of the turnover now taken for the purposes of assessment is in respect of a service contract, on which no tax is payable under the provisions of the Kerala Value Added Tax Act,2003. Reference is also made to the assessment completed for the previous years where the assessing officer has accepted the case of the petitioner. It is submitted that the petitioner could not effectively take part of the proceedings on account of the fact that after the project was completed, the local office was shutdown and because the accountant who was deading with the accounts had left services of the company.
The learned Senior Government Pleader vehemently opposes the grant of any relief to the petitioner. It is submitted that
W.P.(C)No.26447/2022 4 it is evident from a reading of Ext.P8 assessment order itself that the petitioner was given a proper opportunity for taking part of the proceedings initiated against the petitioner. It is submitted that in such circumstances there is no reason for this Court to interfere with the assessment order under Article 226 of the Constitution of India, as the petitioner has an effective alternate remedy before the 1st Appellate Authority. It is submitted that since there is no violation of any principle of natural justice, it is for the petitioner to avail statutory remedies against Ext.P8 order of assessment.
Having heard the learned counsel appearing for the petitioner and the learned Senior Government Pleader, I am of the opinion that the petitioner can be given an opportunity to substantiate his case before the assessing officer. It is true that despite issuance of notice, the petitioner did not take part in the assessment proceedings. However, this Court cannot shut its eyes to the fact that the assessments of the petitioner in respect of the previous years have been completed by the assessing officer and it appears that the case of the petitioner was accepted by the assessing officer. The demand raised by the petitioner is huge and it will only be appropriate that such demands are finalised after affording to the petitioner a proper opportunity of taking part in the assessment proceedings.
W.P.(C)No.26447/2022 5 Accordingly, Ext.P8 order assessment order is set aside. The petitioner shall appear before the 2nd respondent at 11 A.M on 18-11-2022, either in person or through authorised representative. The 2nd respondent shall thereafter complete the proceedings initiated against the petitioner for the assessment year 2016-2017 in accordance with law and after affording to the petitioner an opportunity to produce such documents as may be necessary in support of its claim. Fresh order of assessment shall be issued within a period of six weeks from 18-11-2022. The writ petition is disposed of as above. GOPINATH P. JUDGE ats
W.P.(C)No.26447/2022 6 APPENDIX OF WP(C) 26447/2022 PETITIONER EXHIBITS Exhibit P1 THEOF SOME SAMPLE WORK ORDERS GIVEN BY BHARATH PETROLEUM CORPORATION LIMITED. COCHIN TO THE PETITIONER COMPANY Exhibit P2 THEOF THE ASSESSMENT ORDER NO 32072032585/14-15 DATED 16-10-2019 FOR THE YEAR 2014-2015 Exhibit P2(A) THEOF THE ASSESSMENT ORDER NO 32072032585/14-15 DATED 08-12-2021 FOR THE YEAR 2015-2016 Exhibit P3 THEOF THE PRE ASSESSMENT NOTICE DATED 28-12-2021 FOR THE YEAR 2016-2017 IS PRODUCED Exhibit P4 THEOF THE ADJOURNMENT NOTICE DATED 19-02-2022 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER Exhibit P5 THEOF THE ADJOURNMENT NOTICE DATED 1-06-2022 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER Exhibit P6 THEOF THE PRE ASSESSMENT NOTICE DATED 23-06-2022 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER Exhibit P7 THEOF THE ADJOURNMENT REQUEST LETTER DATED 9-7-2022 SENT BY THE PETITIONER'S HEAD OFFICE FROM MUMBAI TO THE SECOND RESPONDENT Exhibit P7A THEOF THE RESIGNATION LETTER OF THE PETITIONER COMPANY'S GM (TXATION) DATED 14TH DECEMBER 2021 Exhibit P8 THEOF THE ASSESSMENT ORDER NO. 32072032585/2016-17 DATED 11-07-2022 FOR THE YEAR 2016-2017 ALONG WITH THE NOTICE OF DEMAND IN FORM NO.12 DATED 11-07-2022 ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER
W.P.(C)No.26447/2022 7 Exhibit P9 THEOF THE ANNUAL RETURN IN FORM 10B FOR THE YEAR 2016-2017 Exhibit P9A THEOF THE AUDIT REPORT IN FORM 13 A FOR THE YEAR 2016-2017, Exhibit P9B THEOF THE STATEMENT OF CONTRACT RECEIPTS FOR THE YEAR 2016-2017 Exhibit P9C THEOF THE STATEMENT OF FORM 20H Exhibit P9D THEOF THE STATEMENT OF FORM E1 Exhibit P9E THEOF THE C FORM DETAILS FROM BPCL Exhibit P9FOF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE PETITIONER FOR THE YEAR ENDED 31ST MARCH 2017 Exhibit P9G THEOF THE ENTIRE TAX INVOICES ISSUED BY THE PETITIONER TO BPCL DURING THE PERIOD 2016-2017 Exhibit P9H THEOF THE FORM ST-3 RETURN TO PROVE THE PAYMENT OF SERVICE TAX FOR THE RETURN PERIOD OF APRIL TO SEPTEMBER2016-2017 AND OCTOBER TO MARCH 2016-2017
Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.