Seemas Wedding Collections vs. Interlligence Officer - Kerala High Court, 24 June 2019

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI MONDAY, THE 24TH DAY OF JUNE 2019 / 3RD ASHADHA, 1941 WP(C).No.14026 of 2019 PETITIONER/S: SEEMAS WEDDING COLLECTIONS MARKET JUNCTION, NH BYE PASS, ALUVA-683501. (REPRESENTED BY K.P.SUDHEER, MANAGING PARTNER) BY ADVS. SRI.K.N.SREEKUMARAN SRI.N.SANTHOSHKUMAR SRI.P.J.ANILKUMAR (A-1768) RESPONDENT/S: 1 INTERLLIGENCE OFFICER SQUAD NO.II, STATE GOODS AND SERVICE TAX DEPARTMENT, TAX COMPLEX, PERUMANOOR, ERNAKULAM, KOCHI-682015. 2 INSPECTING ASSISTANT COMMISSIONER, STATE GOODS AND SERVICES TAX DEPARTMENT, TAX COMPLEX, MATTANCHERRY, KOCHI - 682002. ADDL.R2 IN IMPLEADED AS PER ORDER DATED 11.06.2019 IN IA 1/2019 IN WP(C) 14026/2019. OTHER PRESENT: GP DR THUSHARA JAMES. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.06.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- W.P.(C). No. 14026 of 2019

JUDGMENT The petitioner challenges Ext.P10 order dated 26.03.2019 and Ext.P11 order dated 18.03.2019, as illegal and violative of principles of natural justice. On 21.05.2019, the learned Government Pleader appearing for respondents accepted notice.

Heard Sri. Sreekumaran, the learned counsel appearing for the petitioner and Dr.Thushara James, the learned Government Pleader appearing for respondents.

The case of petitioner is that Ext.P10 is completely vitiated as illegal and violative of principles of natural justice inasmuch as Ext.P9 reply dated 26.03.2019 is acknowledged by the first respondent on 27.03.2019, firstly no opportunity thereafter was given to the petitioner and secondly, Ext.P10 is dated 26.03.2019. One of the serious grounds canvassed is that Ext.P10 is antedated. The bare perusal of Exts.P10 and P9 goes to show, without much deliberation, that opportunity of hearing is denied to petitioner while passing the penalty order. Hence, the first respondent violated the first requirement of following fair procedure i.e. affording reasonable opportunity to petitioner

-3- before an adverse order is issued. Secondly, Exts.P10 and P11 are penalty orders, and before huge penalty is levied, the petitioner should have been given opportunity of hearing and in the instant case the dates referred to above belie such compliance.

The Court, hence, is constrained to set aside Exts.P10 and P11 on the short ground of violative of principles of natural justice. The matters are remitted to the first respondent for consideration and disposal in accordance with law. The petitioner is directed, accompanied by a copy of this order, to appear before the first respondent on 15.07.2019. The first respondent can either dispose of the cases upon remand on 15.07.2019, or on a date fixed and informed to the petitioner in this regard. The proceedings are completed on or before 10.08.2019. The writ petitioner is disposed of as above. S.V.BHATTI JUDGE das

-4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ANNUAL RETURN FOR 2012-13 FILED BY THE PETITIONER UNDER THE KVAT. EXHIBIT P2OF THE ANNUAL RETURN FOR 2013-14 FILED BY THE PETITIONER UNDER THE KVAT ACT. EXHIBIT P3OF THE ORDER DATED 28.2.2017 OF THE HON'BLE ADDITIONAL BENCH OF THE INCOME TAX SETTLEMENT COMMISSION, CHENNAI. EXHIBIT P4OF THE SHOW CAUSE NOTICE DATED 5.1.2019 FOR 2012-13 ISSUED BY THE RESPONDENT. EXHIBIT P5OF THE SHOW CAUSE NOTICE DATED 5.1.2019 FOR 2013-14 ISSUED BY THE RESPONDENT. EXHIBIT P6OF THE REVISED SHOW CAUSE NOTICE DATED 19.3.2019 FOR 2012-13 ISSUED BY THE RESPONDENT. EXHIBIT P7OF THE LETTER DATED 6.2.2017 OF THE JOINT COMMISSIONER OF INCOME TAX, CENTRAL RANGE, ERNAKULAM ALONG WITH THE REPORT DATED 5.12.2017 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL RANGE, ERNAKULAM. EXHIBIT P8OF THE COMMON REPLY DATED 12.3.2019 FOR 2012-13 & 2013-14 ACKNOWLEDGED BY THE RESPONDENT ON 15.3.2019. EXHIBIT P9OF THE REPLY DATED 26.3.2019 WHICH WAS ACKNOWLEDGED BY THE RESPONDENT ON 27.3.2019. -5- EXHIBIT P10OF THE PENALTY ORDER NO.ISE/II/REIC2/2018-19(2012-13) DATED 26.3.2019 ISSUED BY THE RESPONDENT. EXHIBIT P11OF THE PENALTY ORDER NO.ISE/II/REIC2/2018-19(2013-14) DATED 18.3.2019 ISSUED BY THE RESPONDENT. EXHIBIT P12OF THE DEMAND NOTICE IN FORM 1 BEARING NO.FRR(S2-155/2019-20 DATED 23.05.2019 FOR 2012-2013 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P13OF THE DEMAND NOTICE IN FORM 1 BEARING NO.FRR(S2-154/2019-20 DATED 23.05.2019 FOR 2013-2014 ISSUED BY THE 2ND RESPONDENT.