Souparnika Inn Pvt. Ltd. v. Commissioner of Commercial Taxes, The State Tax Officer, and Central Board of Indirect Taxes & Customs

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: S.V. Bhatti
Judgment Date: 2019-08-22
Court Decision / Holding: Writ petitions dismissed by referring to and following the judgment in W.P.(C) No.11335 of 2018; petitioners advised to avail appellate/revisional remedies along with delay condonation.
Final Disposition: Writ petitions dismissed; remedy to approach appellate/revisional authorities with possible condonation of delay

Parties to the Case

Appellants / Petitioners

Souparnika Inn Pvt. Ltd. (Puthanthani, Malappuram) represented by its Managing Director James M. Joseph)

Respondents

The Commissioner of Commercial Taxes, Thiruvananthapuram
The State Tax Officer, State Goods and Services Tax Office, Kottakkal
Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, Union of India, New Delhi

Legal Representation & Advocates

Counsels for Petitioners

• C.S. Arun Shankar
• T.G. Madhavanunni
• S. Shyam Kumar

Counsels for Respondents

• P.R. Sreejith, SC, Central Board of Excise and Customs

Case Synopsis & Summary

These batch writ petitions challenge Section 174 of the Kerala State Goods and Services Tax Act (KSGST Act) and related demand under the KVAT Act. The petitioners contend the provision is ultra vires the state's legislative power and, in some petitions, that the demand is time-barred under Section 25(1) of the KVAT Act. Heard together with WP(C).26659/2018 and WP(C).26818/2018, the petitions were decided by reference to this Court’s earlier decision in W.P.(C) No.11335 of 2018. The court, after hearing counsel and the Government Pleader, dismissed the petitions in line with the ratio in 11335/2018 and with the consent of counsel, noting that the petitioners’ stance is contradicted by this Court’s earlier rulings in the same line (including Sheen Golden Jewels). It directs that the petitioners may pursue the statutory remedy of appeal or revision, along with an application for condonation of delay, so that the remedy remains effective. The judgment, recorded by Justice S.V. Bhatti, relies on the exhibits and the high court order referenced in the appendices. The decision emphasizes that the remedy should not become ineffective for the aggrieved party and closes by enabling the remedies offered by law.

Provisions of Law Cited

Section 174 of the KSGST ActSection 25(1) of the KVAT ActSection 7 of the KGST Act, 1963

Legal Doctrines & Maxims

ultra vires

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners challenge Section 174 of the KSGST Act as ultra vires the state's legislative power and, in some petitions, contend the demand is barred by delay under Section 25(1) of the KVAT Act.

Cited Precedents (2)

Case Name	Citation	Treatment	Explanation
M/s. Sheen Golden Jewels (India) Pvt. Ltd. v. The State Tax Officer (IB)-1	: null	Mentioned Only	Referenced in the judgment as part of surrounding decisions; not expressly treated as controlling in the present order.
W.P.(C) No.11335 of 2018 and connected cases	: null	Positive	The ratio in this judgment is expressly followed to dispose of the batch; the court cites it as the guiding precedent.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** **THURSDAY, THE 22ND DAY OF AUGUST 2019 / 31ST SRAVANA, 1941** ## **WP(C).No.26659 OF 2018(F)** ## **PETITIONER/S:** **SOUPARNIKA INN PVT. LTD. PUTHANTHANI, MALAPPURAM-676 552,REPRESENTED BY ITS MANAGING DIRECTOR JAMES M.JOSEPH.** **BY ADVS. SRI.C.S.ARUN SHANKAR SRI.T.G.MADHAVANUNNI SRI.S.SHYAM KUMAR** ## **RESPONDENT/S:** - **1 THE COMMISSIONER OF COMMERCIAL TAXES THIRUVANANTHAPURAM-695 033.** - **2 THE STATE TAX OFFICER STATE GOODS AND SERVICES TAX OFFICE,KOTTAKKAL, MALAPPURAM-676 503.** - **3 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS DEPARTMENT OF REVENUE, MINISTRY OF FINANCE,UNION OF INDIA, NEW DELHI-110 001.** - **R1, R3 BY SRI.P.R.SREEJITH, SC, CENTRAL BOARD OF EXCISE AND CUSTOMS** ## **OTHER PRESENT:** **GP. SMT. M.M. JASMIN** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.08.2019, ALONG WITH WP(C).26799/2018(Y), WP(C).26818/2018(B), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** -2- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** **THURSDAY, THE 22ND DAY OF AUGUST 2019 / 31ST SRAVANA, 1941** ## **WP(C).No.26799 OF 2018** ## **PETITIONER/S:** **SOUPARNIKA INN PVT. LTD.** **PUTHANATHANI, MALAPPURAM-676 552,REPRESENTED BY ITS MANAGING DIRECTOR JAMES M.JOSEPH** **BY ADVS.** **SRI.C.S.ARUN SHANKAR SRI.T.G.MADHAVANUNNI** ## **RESPONDENT/S:** **1 THE COMMISSIONER OF COMMERCIAL TAXES THIRUVANANTHAPURAM-695 033** **2 THE STATE TAX OFFICER STATE GOODS AND SERVICE TAX OFFICE,KOTTAKKAL, MALAPPURAM-676 503** **3 CENTRAL BOARD OF INDIRECT TAXES CUSTOMS DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, UNION OF INDIA, NEW DELHI-110 001** **R1, R3 BY SRI.P.R.SREEJITH, SC, CENTRAL BOARD OF EXCISE AND CUSTOMS** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.08.2019, ALONG WITH WP(C).26659/2018(F), WP(C).26818/2018(B), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** -3- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE S.V.BHATTI** **THURSDAY, THE 22ND DAY OF AUGUST 2019 / 31ST SRAVANA, 1941** **WP(C).No.26818 OF 2018** ## **PETITIONER/S:** **SOUPARNIKA INN PVT. LTD.,** **PUTHANATHANI, MALAPPURAM-676552, REPRESENTED BY ITS MANAGING DIRECTOR JAMES M.JOSEPH.** **BY ADVS.** **SRI.C.S.ARUN SHANKAR SRI.T.G.MADHAVANUNNI SRI.S.SHYAM KUMAR** ## **RESPONDENT/S:** **1 THE COMMISSIONER OF COMMERCIAL TAXES THIRUVANANTHAPURA.-695 033** **2 THE STATE TAX OFFICER STATE GOODS AND SERVICES GAX OFFICE, KOTTAKKAL, MALAPPURAM-676 503.** **3 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS DEPARTMENT OF REVENUE,MINISTRY OF FINANCE, UNION OF INDIA,NEW DELHI-110 001** **R1, R3 BY SRI.P.R.SREEJITH, SC, CENTRAL BOARD OF EXCISE AND CUSTOMS** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.08.2019, ALONG WITH WP(C).26659/2018(F), WP(C).26799/2018(Y), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** -4- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **JUDGMENT** **[ WP(C).26659/2018, WP(C).26799/2018, WP(C).26818/2018 ]** In this batch of writ petitions the petitioners have laid challenge amongst others that Section 174 of the KSGST Act is _ultra virus_ of the state's legislative power or on the ground that the demand is barred by limitation under Section 25(1) of the KVAT Act. In some cases, both the grounds have been taken. 2. Heard the learned counsel for the petitioners and the learned Government Pleader. 3. Keeping in view the judgment of this Court in W.P.(C) No.11335 of 2018 dated 11.1.2019, the ratio laid down therein and with the consent of the counsel on either side, the following order is made. 4. The writ petitions are dismissed by referring to and following the judgment in W.P.(C)No.11335 of 2018. The counsel for the petitioners for the present do not invite a finding, -5- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** though it is against the petitioners in view of the decisions of this Court in _**M/s.Sheen Golden Jewels (India) Pvt.Ltd. v. The State**_ **.** _**Tax Officer (IB)-1[1]**_ 5. The petitioners if so advised, can avail the remedy of appeal or revision before the appellate authority/revisional authority as the case may be and avail such remedy of appeal or revision along with an application for condonation of delay. The appellate/principal authority takes note of the time spent by the petitioner/assessee in working out the writ prayer and passes orders appropriately so that the statutory remedy of appeal/revision is not rendered ineffective or remedy is lost to an aggrieved party. **Sd/-** **S.V.BHATTI JUDGE** JS 1 Judgement dated 11.1.2019 in WPC No.11335 of 2018 & conn.cases -6- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **APPENDIX OF WP(C) 26659/2018** **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1:** **TRUE COPY OF THE ASSESSMENT ORDER DATED 31.05.2018 ISSUED UNDER SECTION 7 OF THE KGST ACT, 1963 BY THE 2ND RESPONDENT FOR THE YEAR 2014-15.** **EXHIBIT P2:** **TRUE COPY OF THE ORDER DATED 04.04.2018 OF THE HON'BLE HIGH COURT IN WPC NO.11335 OF 2018.** -7- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **APPENDIX OF WP(C) 26799/2018** **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1** **TRUE COPY OF THE ASSESSMENT ORDER DATED 13/62018 ISSUED U/S.7 OF THE KGST ACT, 1963 BY THE 2ND RESPONDENT FOR THE YEAR 2016-17** **EXHIBIT P2** **TRUE COPY OF THE ORDER DATED 04-04-2018 OF THE HON'BLE HIGH COURT IN W.P(C) NO.11335 OF 2018** -8- **WP(C).No.26659, 26799 & 26818 OF 2018(F)** ## **APPENDIX OF WP(C) 26818/2018** **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1:** **TRUE COPY OF THE ASSESSMENT ORDER DATED 31-05-2018 ISSUED U/S. 7 OF THE KGST ACT, 1963 BY THE 2ND RESPONDENT FOR THE YEAR 2015-16** **EXHIBIT P2; TRUE COPY OF THE ORDER DATED 04-04-2018 OF THE HON'BLE HIGH COURT IN W.P.9C) NO.11335 OF 2018.**