Escon Elevators PVT. LTD. vs. The State Tax Officer (Wc) - Kerala High Court, 08 July 2021

Heard together (2 matters)

WP(C) NO. 12818 OF 2021

TC 31/23

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR THURSDAY, THE 8TH DAY OF JULY 2021 / 17TH ASHADHA, 1943 WP(C) NO. 12818 OF 2021 PETITIONER: ESCON ELEVATORS PVT. LTD. 43/488, SANKARANANDA ASHRAMOM ROAD, NEAR ESI HOSPITAL, ERNAKULAM NORTH, KOCHI-682018, REPRESENTED BY ITS BRANCH MANAGER, KUNJUMON E. BY ADVS. HARISANKAR V. MENON MEERA V.MENON K.KRISHNA RESPONDENTS: 1 THE STATE TAX OFFICER (WC), STATE GOODS AND SERVICES TAX DEPARTMENT, CLAS TOWER, OLD RAILWAY STATION ROAD, ERNAKULAM, KOCHI-682018. 2 THE ASSISTANT GARRISON ENGINEER (CONTRACTS), GARRISON ENGINEER, FORT KOCHI, KOCHI-682001. 3 D.M.HEALTHCARE PVT. LTD., 39/3103, 1ST FLOOR, PDR BHAVAN, PALLIYIL LANE, ERNAKULAM-682016, REPRESENTED BY SANJU K.R., ASSISTANT MANAGER- FINANCE. 4 THE DEPUTY CHIEF ENGINEER, INVESTIGATION CIRCLE, KSEB LTD., VYDYUTHI BHAVANAM, THRISSUR-680004. 5 KERALA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION (KINFRA), KINFRA HOUSE, TC 31/2312, SASTHAMANGALAM, THIRUVANANTHAPURAM-695010, REPRESENTED BY E.M.HARRIS, DEPUTY MANAGER -FINANCE. 6 THE EXECUTIVE ENGINEER, KOCHI CENTRAL ELECTRIC DIVISION, CENTRAL PWD, 4TH FLOOR, A WING, KENDRIYA BHAVAN, CSEZ P.O., KAKKANAD, KOCHI-682037. WP(C) NO. 12818 OF 2021 2 7 AE AGE (CONTRACTS), GARRISON ENGINEER (NS), KATARIBAGH NAVAL BASE, FORT KOCHI, KOCHI-682004. 8 THE COMMISSIONER STATE GOODS AND SERVICES TAX DEPARTMENT, TAX TOWERS, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM-695002. 9 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM-695001. BY ADV P.U.SHAILAJAN SMT.THUSHARA JAMES, SPL GP,TAX, SRI.SUDHEER GANESH KUMAR, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 12818 OF 2021 3

JUDGMENT Heard the learned counsel for the petitioner as well as the learned Government Pleader for respondents 1, 2 and 8. 2. The grievance of the petitioner is about breach of principles of natural justice while passing assessment order at Ext.P5. It is demonstrated that exemption of 25% was proposed in the showcause notice, whereas at the time of passing the assessment order at Ext.P5, the exemption was limited to 15%. It is argued that if it was intended to reduce the exemption from 25% to 15% under Rule 10(2)(b) of the KVAT Rules, then the Assessing Officer ought to have noticed the petitioner, which is not done in the instant case.

The learned Government Pleader opposed the petition by supporting the impugned order at Ext.P5. 4. I have considered the submissions so advanced and perused the pre-assessment notice as well as the assessment order which reflects that the proposed exemption of 25% was reduced to 15% while passing the assessment order, without noticing the petitioner. In this view of the matter, as the non-compliance of principles of natural justice are writ large on the face of record, the impugned order at Ext.P5 is WP(C) NO. 12818 OF 2021 4 quashed and set aside. Matter is remitted for fresh consideration according to law. The petitioner to appear before the 1st respondent at 11 a.m. of 19/07/2021 and then to abide by further directions of the 1st respondent. It is expected of the petitioner to cooperate with the 1st respondent in the assessment proceedings. N A.M.BADAR JUDGE

WP(C) NO. 12818 OF 2021 5 APPENDIX OF WP(C) 12818/2021 PETITIONER ANNEXURE Exhibit P1 COPY OF FORM NO.20C CERTIFICATE ISSUED BY THE 2ND RESPONDENT DATED 31.5.2015. Exhibit P1(A) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 3RD RESPONDENT DATED 10.7.2015. Exhibit P1(J) COPY OF FORM NO.20C CERTIFICATE ISSUED BY THE 7TH RESPONDENT DATED 31.3.2016. Exhibit P2 COPY OF RECONCILIATION STATEMENT OF THE PETITIONER DATED NIL. Exhibit P3 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DATED 11.1.2021. Exhibit P4 COPY OF LETTER SUBMITTED BY THE PETITIONER DATED 15.2.2021. Exhibit P5 COPY OF ASSESSMENT ORDER NO.32072014179/2015- 16 ISSUED BY THE 1ST RESPONDENT DATED 18.2.2021. Exhibit P1(B) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 2ND RESPONDENT DATED 30.9.2015. Exhibit P1(C) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 4TH RESPONDENT DATED 21.1.2016. Exhibit P1(D) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 5TH RESPONDENT DATED NIL. Exhibit P1(E) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 5TH RESPONDENT DATED NIL. Exhibit P1(F) COPY OF FORM NO.20F CERTIFICATE ISSUED BY THE 4TH RESPONDENT DATED 2.11.2015. Exhibit P1(G) COPY OF FORM NO.20C CERTIFICATE ISSUED BY THE 2ND RESPONDENT DATED 31.1.2016. Exhibit P1(H) COPY OF FORM NO.20C CERTIFICATE ISSUED BY THE WP(C) NO. 12818 OF 2021 6 6TH RESPONDENT DATED 8.4.2016. Exhibit P1(I) COPY OF FORM NO.20C CERTIFICATE ISSUED BY THE 7TH RESPONDENT DATED 18.4.2016 //// PA to Judge