M/S. Manappuram Jewellers LTD. vs. The State Tax Officer (Investigation Branch) - Kerala High Court, 17 September 2021

Cause title — parties, addresses and appearances

W.P.(C) No.27245 of 2019 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 17TH DAY OF SEPTEMBER 2021 / 26TH BHADRA, 1943 WP(C) NO. 27245 OF 2019 PETITIONER: M/S. MANAPPURAM JEWELLERS LTD. 4/522, 1ST FLOOR, MANAPPURAM HOUSE, VALAPPAD P.O. THRISSUR, REPRESENTED BY ITS CHIEF FINANCE OFFICER, BASNATH BHASKAR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS: 1 THE STATE TAX OFFICER (INVESTIGATION BRANCH) SGST DEPARTMENT, THRISSUR 680 001. 2 DY. COMMISSIONER (APPEALS), STATE GOODS AND SERVICES TAX DEPARTMENT, THRISSUR 680 001. 3 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT OF KERALA, SECRETARIAT, THIRUVANANTHAPURAM 695 001. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.27245 of 2019 2 BECHU KURIAN THOMAS, J =========================== W.P.(C) No.27245 of 2019 --------------------------------- Dated this the 17th day of September, 2021

JUDGMENT

Petitioner is an assesseee under the Kerala Value Added Tax Act, 2003. Faced with Ext.P1 penalty order for the assessment year 2013-2014, petitioner has filed Ext.P2 appeal before the 2nd respondent.

Now the petitioner complains that the appellate authority, instead of numbering the appeal, has kept

the appeal aside as defective and issued Ext.P3 notice alleging that the petitioner has not deposited 1% of the disputed tax as court fee due to the Kerala Legal Benefit Fund and also cautioned that the appeal will be rejected for default, if the said amount is not deposited.

According to the counsel for the petitioner, the petitioner needs to pay only 0.5% of the disputed amount because of the relevant notification and the judgment of this Court in O.P.(Tax) No.2/2017. 4. I have heard Adv.Harisankar V.Menon, the learned counsel for the petitioner, the learned Standing Counsel, and have also perused the records.

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.

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 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. The writ petition is disposed of as above. BECHU KURIAN THOMAS, JUDGE AMV/20/09//2021 APPENDIX OF WP(C) 27245/2019 PETITIONER'S EXHIBITS EXHIBIT P1 COPY OF PENALTY ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 30.7.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 4.9.2019. EXHIBIT P3 COPPY OF DEFECT NOTICE ISSUED BY THE 2ND RESPONDENT 10.10.2019 EXHIBIT P4 COPY OF SRO NO. 315/2016 ISSUED BY THE 3RD RESPONDENT DATED 7.4.2016. EXHIBIT P5 COPY OF JUDGMENT IN WPC NO. 39633/16 OF THIS HONBLE COURT DATED 30.3.2017. EXHIBIT P5OF JUDGMENT IN OP (TAX) NO. 2/17 OF THIS HONBLE COURT 13.6.2017. RESPONDENT'S EXHIBITS NIL ////