Prasad T.S. vs. The State Tax Officer (Intelligence)

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WP(C)/9283/2021HC KeralaGSTCNR KLHC01024659202127 September 2021Bench: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

Facts

The petitioner, Prasad T.S., Manager of Hotel Bonanza, challenged an order of penalty (Ext.P2) issued by the 1st respondent, the State Tax Officer (Intelligence), for the assessment year 2019-20 under the Kerala General Sales Tax Act, 1963. The petitioner's primary contention was that the penalty order was passed contrary to a previous decision of the High Court in O.T.(Rev.) No.124 of 2014. During the hearing, it was submitted that the petitioner had also filed a rectification petition (Ext.P3) against the penalty order. The writ petition was filed before the High Court of Kerala.

Held

The Court noted that the petitioner had filed a rectification petition (Ext.P3) against the penalty order and that this petition was pending consideration. Given this development, the Court deemed it appropriate to dispose of the writ petition by directing the 1st respondent to consider and pass orders on the rectification petition expeditiously. The Court directed the 1st respondent to consider and pass orders on Ext.P3 within two months of receiving a copy of the judgment. Furthermore, in light of the petitioner's reliance on O.T.(Rev.) No.124 of 2014, the Court directed the respondents not to pursue coercive proceedings pursuant to Ext.P2 penalty order until a decision was taken on the rectification petition. The Court did not decide on the merits of the penalty order itself or the petitioner's primary contention regarding the precedent.

Key Issues

1. Whether the penalty order (Ext.P2) passed by the 1st respondent for the assessment year 2019-20 is liable to be set aside as it was allegedly contrary to the ratio declared by this Court in O.T.(Rev.) No.124 of 2014. Petitioner's contention: The petitioner argued that the penalty order was passed in contravention of the established legal precedent set by this Court in O.T.(Rev.) No.124 of 2014. Revenue's contention: The judgment does not record any specific arguments from the revenue's side regarding the merits of the penalty order or its compliance with the cited precedent. However, the revenue was represented by the Senior Government Pleader.

Sections Cited

Kerala General Sales Tax Act, 1963

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 27TH DAY OF SEPTEMBER 2021 / 5TH ASWINA, 1943 WP(C) NO. 9283 OF 2021 PETITIONER: PRASAD T.S. MANAGER, HOTEL BONANZA, NH-66, PARAVOOR JUNCTION, PARAVOOR P.O., ALAPPUZHA-688014. BY ADV.V.DEVANANDA NARASIMHAM SRI.P.H.RIYAS SHRI.FIBIN.F RESPONDENTS: 1 THE STATE TAX OFFICER (INTELLIGENCE) SQUAD NO.1, KSGST DEPARTMENT, 4TH FLOOR, CIVIL STATION ANNEX, ALAPPUZHA-688013. 2 THE STATE TAX OFFICER, KSGST DEPARTMENT, 2ND CIRCLE, ALAPPUZHA-688001. BY DR.THUSHARA JAMES, SR. GOVT. PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.9283/21 -:2:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.9283 of 2021 ---------------------------------------- Dated this the 27th day of September, 2021

JUDGMENT Even though petitioner is challenging Ext.P2 order of penalty issued by the 1st respondent for the assessment year 2019-20 under the Kerala General Sales Tax Act, 1963 ('the Act' for short) on the sole ground that the order of penalty was passed contrary to the ratio declared by this Court in O.T.(Rev.) No.124 of 2014 dated 06.09.2018, it was submitted during the course of hearing that, petitioner has preferred Ext.P3 rectification petition.

2.

I have heard Adv.V.Devananda Narasimham, learned counsel for the petitioner as well as Adv.Thushara James, learned Senior Government Pleader for the respondents.

3.

Having regard to the fact that a rectification petition has been preferred and the same is pending consideration, I am of the view that this writ petition can be disposed of with a direction to the 1st respondent to consider and pass orders on Ext.P3 expeditiously.

4.

Accordingly, there will be a direction to the 1st respondent to consider and pass orders on Ext.P3 rectification petition filed by the petitioner, within a period of two months from the date of receipt of a copy of this judgment. Since petitioner has based his contention upon the order in O.T.(Rev.) No.124 of 2014, there shall be a direction to the respondents not to pursue coercive proceedings pursuant to Ext.P2 order of penalty, till a decision is taken on Ext.P3 rectification petition, as directed in this judgment. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE vps

Appendix — schedule of exhibits
APPENDIX OF WP(C) 9283/2021 PETITIONER'S/S' EXHIBITS EXHIBIT P1 TRUE COPY OF FORM-GSTR-3B RETURN DATED 03.10.2020 FOR THE MONTH OF MARCH, 2020 CONCEDING KGST SALES TURNOVER OF RS.61,12,214/- EXHIBIT P2 TRUE COPY OF THE PENALTY ORDER DATED 28.09.2020 FOR THE YEAR 2019-20 PASSED BY 1ST RESPONDENT U/S 45A OF THE KGST ACT ON WEIGHTED AVERAGE GP RATION BASIS. EXHIBIT P3 TRUE COPY OF THE APPLICATION FOR RECTIFICATION OF MISTAKE APPARENT ON THE FACE OF RECORD FILED U/S 43 KGST ACT ON 31.03.2021 FOR THE YEAR 2019-20. EXHIBIT P4 TRUE COPY OF THE LATEST JUDGMENT DECLARING THE RATIO-DECIDENDI PARI- MATERIA APPLICABLE TO THE IMPUGNED CASE IN STATE OF KERALA VS.JOEMON RAJAN (OT.REV.124/2014) DATED 06.09.2018 PRONOUNCED BY THIS HON'BLE COURT. EXHIBIT P5 TRUE COPY OF THE JUDGMENT DATED 01.01.2014 PASSED BY THIS HON'BLE COURT IN STATE OF KERALA VS.ANTONY ABRAHAM (ST.REV.46 OF 2013).

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.