M/s Poonam Grihanirman Private Limited v. Goods and Service Tax Officer (W.C.), State Goods and Service Tax Department, Commissioner of State Taxes, State of Kerala

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: S. V. Bhatti
Basant Balaji
Judgment Date: 2022-11-16
Court Decision / Holding: The Writ Appeals stand disposed of.
Final Disposition: Disposed of

Parties to the Case

Appellants / Petitioners

M/S Poonam Grihanirman Private Limited, Manimadom, Ambalappuzha, Alleppey District, Pin-688561

Respondents

The Goods and Service Tax Officer (W.C.), State Goods and Service Tax Department, Meluvallil Building, Kallupalam, Alappuzha, Pin 688001
The Commissioner of State Taxes, Tax Towers, Karamana, Thiruvananthapuram-695002
The State of Kerala represented by the Secretary, Taxes Department, Government Secretariat, Thiruvananthapuram-695001

Legal Representation & Advocates

Counsels for Petitioners

• E.P. Govindan
• Smt. G. Deepa

Counsels for Respondents

• Smt. Jasmin M.M.

Case Synopsis & Summary

This writ appeal concerns M/s Poonam Grihanirman Private Limited challenging a common High Court judgment dated 11.1.2019 in WP(C) Nos. 21184/2018 and 35489/2018, which disposed of two petitions challenging revised assessments under the Kerala Value Added Tax Act, 2003 and the transition to the Kerala Goods and Services Tax Act, 2017. The appellant contends that, following the 101st Constitutional Amendment Act, 2016, and the replacement of the KVAT regime by KGST, the assessing authority had no jurisdiction to issue KVAT assessments or penalties after 15 September 2017. The petitions also sought to compel the assessing officer to accept Form 20H declarations and to stay further action under Exts. P1 and P2 of the revised orders. The respondents submitted that receiving Form 20H declarations is feasible but their acceptance is a matter of verification by the assessing officer after examining the declarations for correctness and entitlement. The High Court observed the limited objection and indicated that it would not decide the exact admissibility of the Form 20H declarations at this stage, but that the officer should examine them from the perspective of entitlement and give what is due if warranted. It directed the appellant to resubmit declarations within four weeks, enclosing a copy of the judgment, and left the remaining questions to verification. Thus, the writ appeals were disposed of.

Provisions of Law Cited

Section 25(1) of the Kerala Value Added Tax Act, 2003Clause 19 of the 101st Constitution Amendment Act, 2016Kerala Goods and Services Tax Act, 2017

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Form 20H declarations filed by the petitioner are fully compliant with the formalities prescribed for acceptance, and that the Assessing Officer should receive these declarations, verify the details, and grant the due deductions where applicable. The prayer pressed was limited to directing the Assessing Officer to receive the Form 20H declarations, verify them, and pass suitable orders, while staying further action under Exts. P1 and P2. The appellant also seeks to avoid interest for periods prior to demand notices. The court clarified that it would not adjudicate the full extent of the acceptance of the declarations at this stage and would leave the officer to verify and determine entitlement.

Contentions of Respondents

The respondents submitted that receiving declarations is not difficult, but acceptance must be subject to verification by the assessing officer. They urged the court to allow reception of Form 20H declarations and leave the subsequent orders to the officer's review. The court observed the need for due verification and record-keeping, and directed the officer to examine declarations in the light of the judgment and to grant relief if due.

Extracted Judgment Text

Exact text extracted from official judgment records.

1 # **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE S.V.BHATTI ``` ``` & ``` ``` THE HONOURABLE MR.JUSTICE BASANT BALAJI ``` ``` WEDNESDAY, THE 16[TH] DAY OF NOVEMBER 2022 / 25TH KARTHIKA, 1944 ``` **==> picture [138 x 9] intentionally omitted <==** ## **`AGAINST THE JUDGMENT IN WP(C) 21184/2018 OF HIGH COURT OF KERALA`** ## **`APPELLANT:`** ``` M/S.POONAM GRIHANIRMAN PRIVATE LIMITED, MANIMADOM, AMBALAPPUZHA, ALLEPPEY DISTRICT, PINCODE- 688561, A PRIVATE LIMITED COMPANY, REPRESENTED BY SRI.R.ANANTHA NARAYANAN, MANAGING DIRECTOR. BY ADVS. E.P.GOVINDAN SMT.G.DEEPA ``` ## **`RESPONDENTS:`** ``` THE GOODS AND SERVICE TAX OFFICER(W.C), STATE GOODS AND SERVICE TAX DEPARTMENT, MELUVALLIL 1 BUILDING, KALLUPALAM, ALAPPUZHA, PINCODE- 688001. 2THE COMMISSIONER OF STATE TAXES, TAX TOWERS, KARAMANA, TRIVANDRUM- 695002. ``` 2 ``` 3THE STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, TRIVANDRUM- 695001. BY ADV SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL ``` ## **`OTHER PRESENT:`** ``` 0 GP M.M. JASMIN ``` ``` THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 16.11.2022, ALONG WITH WA.1523/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 3 ``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE S.V.BHATTI ``` ``` & ``` ``` THE HONOURABLE MR.JUSTICE BASANT BALAJI ``` ``` WEDNESDAY, THE 16[TH] DAY OF NOVEMBER 2022 / 25TH KARTHIKA, 1944 ``` ## **`WA NO. 1523 OF 2019`** ## **`AGAINST THE JUDGMENT IN WP(C)35489/2018 OF HIGH COURT OF`** ``` KERALA ``` ## **`APPELLANT:`** ``` M/S. POONAM GRIHANIRMAN PRIVATE LIMITED, MANIMADOM, AMBALAPPUZHA, ALLEPPEY DISTRICT, PIN- 688561, A PRIVATE LIMITED COMPANY, REPRESENTED BY SRI. R. ANANTHA NARAYANAN, MANAGING DIRECTOR. BY ADVS. E.P.GOVINDAN SMT.G.DEEPA ``` ## **`RESPONDENTS:`** ``` 1THE GOODS AND SERVICE TAX OFFICER (W.C.), STATE GOODS AND SERVICE TAX DEPARTMENT, MELUVALLIL BUILDING, KALLUPALAM, ALAPPUZHA, PIN-688001. 2THE COMMISSIONER OF STATE TAXES, TAX TOWERS, KARAMANA, THIRUVANANTHAPURAM-695002. ``` 4 ``` 3THE STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001. BY ADV SRI.K.K.RAVINDRANATH, ADDL.ADVOCATE GENERAL ``` ``` OTHER PRESENT: ``` ``` 0 GP M.M. JASMIN ``` ``` THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 16.11.2022, ALONG WITH WA.1515/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 5 ## **`JUDGMENT`** ``` [WA Nos.1515/2019, 1523/2019] ``` ## _**S.V.BHATTI, J.**_ M/s Poonam Grihanirman(P)Ltd./Writ Petitioner is the appellant and the appeals are filed against the common judgment dated 11.1.2019 in Writ Petition Nos.21184 of 2018 and 35489 of 2018. 2. We have heard Mr.Govindan E.P., learned counsel for the appellant and Smt.Jasmin M.M., learned Government Pleader for the respondents. 3. The prayers in Writ Petition No.21184 of 2018 are considered for disposing of both the appeals. The appellant filed W.P.(C)No.21184 of 2018 for the following reliefs: **i.** To call for the records leading to Ext.P1 & P2 revised assessment orders passed by the first respondent assessing authority u/s.25(1) of the Kerala Value Added Tax Act, 2003 and quash the same by issuing a writ of certiorari or by issuing any other appropriate writ, order or direction. **ii.** To declare that the first respondent assessing authority 6 have no jurisdiction to issue any notice or pass any assessment orders, penalty orders etc. under the provision of Kerala Value Added Tax Act, 2003 after 15.09.2017 in view of clause 19 of the 101 Constitution Amendment Act, 2016. **iii.** To declare that the first respondent who is appointed as an assessing authority under Kerala Goods and Service Tax Act, 2017 have no jurisdiction to pass any assessment orders under the repealed KVAT Act, 2003. **iv.** To issue a writ of mandamus or any other appropriate writ, order or direction directing the first respondent assessing authority to accept Exts.P10 & P11 form 20H declarations produced by the petitioner company. **v.** To pass appropriate orders staying all further action in pursuance of Exts.P1 and P2 revised assessment orders passed by the first respondent assessing authority. **vi.** To declare that the petitioners are not liable to pay any interest for the period prior to service of demand notice. **vii.** To issue such other writ, order or direction as this Hon’ble Court may deem fit in the facts and circumstances of the case.“ 4. Referring to the instructions received from the appellant, Adv.Govindan does not press writ prayer Nos.i,ii,iii,v,vi and vii. The prayer covered by Sl.No.iv is pressed, and the submission made by the counsel is that the appellant in due compliance with the requirement of the Act and the Rules has placed Form 20H declaration before the Assessing Officer, which according to him are fully compliant with all the formalities required for 7 acceptance of declaration filed in Form 20H. Without referring to the compliance status, by referring to a few figures which are not compatible with the turnovers undertaken by the appellant, notice under Section 25(1) has been issued. The limited prayer he makes is to direct the Assessing Officer to receive the declarations filed in Form 20H by the appellant for the respective years, verify the details contained in the respective declarations and give the benefit of deduction, as the case may be, to the appellant. 5. Smt.Jasmin appearing for the respondents states that there ought not to be any difficulty in receiving the declarations filed in Form 20H, but acceptance of the declarations filed by a dealer is a matter of verification, subject to giving that liberty to the officer, the officer could be directed to receive Form 20H declarations from the appellant and orders as are deemed necessary and correct may be passed. 6. We take note of the limited objection pointed out by the 8 counsel appearing for the State and we are not examining to what extent the declarations now sought to be filed by the appellant should be accepted by the Assessing Officer. However, when the Assessing Officer sits in his own chair, he is expected to look at respective declarations from the perspective in which the declarations are examined to record a finding on the entitlement and give what is due to the assessee/dealer. The dealer is given liberty to submit or resubmit the declarations by enclosing a copy of this judgment within four weeks from today. With the above observations, the Writ Appeals stand disposed of. Sd/- **S.V.BHATTI, JUDGE** Sd/- **BASANT BALAJI, JUDGE** css/