CORNER GENERATOR SALES & SERVICE PVT LTD V. THE COMMISSIONER OF INCOME TAX

WP(C)/9186/2015

AI Insights

The case involves Corner Generators Sales & Service Pvt Ltd., which filed two writ petitions concerning the assessment under the Income Tax Act and the deferment of service tax payment until the completion of the income tax assessment. The petitioner argued that completing the income tax assessments for the years 2013-14 and 2014-15 would allow them to utilize any refunds to discharge their service tax liabilities. The Income Tax Department acknowledged that the assessment for 2013-14 was nearly complete but required further formalities for 2014-15. The court decided to expedite the assessments and defer the service tax demand for four months.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 699607 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-06-2015
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Finance Act, 1994
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: N SUBRAMANIAM; M S NARAYANAN; P T GIRIJAN; USHA NARAYANAN
• Keywords: Income tax assessment; Service tax; Deferment of Tax; Refund Utilization
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE THURSDAY, THE 11TH DAY OF JUNE 2015/21ST JYAISHTA, 1937 WP(C).No. 9186 of 2015 (W) --------------------------- PETITIONER : ----------------- CORNER GENERATORS SALES & SERVICE PVT LTD., HAVING ITS REGISTERED OFFICE AT 39/397, PLOT NO.72, MAJOR INDUSTRIAL EDSTATE DEVELOPMENT PLOT, SOUTH KALAMASSERRY P. O., KOCHI-683 104 REPRESENTED BY ITS DIRECTOR-THOMAS GEORGE, S/O.LATE GEORGE JOHN, RESIDING AT HOUSE NO.48, AYANI NADA, VIJAYA ROAD, MARADU P.O., ERNAKULAM DISTRICT-682 304. BY ADVS.SRI.N.SUBRAMANIAM SRI.M.S.NARAYANAN SRI.P.T.GIRIJAN SMT.USHA NARAYANAN RESPONDENTS : ----------------------- 1. THE COMMISSIONER OF INCOME TAX, REVENUE TOWERS, I.S.PRESS ROAD, ERNAKULAM NORTH P.O., KOCHI-682 018. 2. THE INCOME TAX OFFICER, WARD-I, KOCHI, REVENUE TOWERS, I.S.PRESS ROAD, ERNAKULAM NORTH P.O., KOCHI-682 018. R1 & R2 BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-06-2015, ALONG WITH WPC. 11917/2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: bp WP(C).No. 9186 of 2015 (W) --------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1: TRUE COPY OF THE INCOME TAX RETURNS DATED 22.1.2014 OF THE PETITIONER FOR THE ASSESSMENT YEAR 2013-14. EXT.P2: TRUE COPY OF THE INCOME TAX RETURNS DATED 13.3.2015 OF THE PETITIONER FOR THE ASSESSMENT YEAR 2014-15. EXT.P3: TRUE COPY OF THE NOTICE DATED 2.09.2014 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. EXT.P4: TRUE COPY OF THE ORDER DATED 30.10.2014 PASSED BY THE DEBT RECOVERY TRIBUNAL, ERNAKULAM. EXT.P5: TRUE COPY OF THE NOTICE DATED 01.01.2015 ISSUED BY THE OFFICE OF THE SUPERINTENDENT OF CENTRAL EXCISE, KALAMASSERY RANGE, ERNAKULAM. EXT.P6: TRUE COPY OF THE LETTER DATED 30.1.2015 TO THE SUPERINTENDENT CENTRAL EXCISE, KALAMASSERY. EXT.P7: TRUE COPY OF THE LETTER DATED 03.02.2015 TO THE SUPERINTENDENT CENTRAL EXCISE, KALAMASSERY. EXT.P8: TRUE COPY OF THE LETTER DATED 12.02.2015 TO THE SUPERINTENDENT CENTRAL EXCISE, KALAMASSERY. EXT.P9: TRUE COPY OF THE LETTER DATED 03.02.2015 TO THE SUPERINTENDENT CENTRAL EXCISE, KALAMASSERY. RESPONDENT(S)' EXHIBITS : NIL. //TRUE COPY// P.A. TO JUDGE bp A.MUHAMED MUSTAQUE, J. ------------------------------------ W.P.(C) Nos.9186 & 11917 of 2015 ----------------------------------- Dated this the 11th day of June, 2015 J U D G M E N T These writ petitions are filed by the one and same Company for the reliefs related to the assessment under the Income Tax Act and to defer the demand for service tax till conclusion of the assessment of income tax. 2. W.P.(C).No.9186/2015 is filed to expedite the income tax assessment for the year 2013-14 and 2014-15. The petitioner submits that, if the assessment is completed, they would be entitled for refund and that can be utilized for discharging the liability of service tax under the Finance Act, 1994. 3. W.P.(C).No.11917/2015 is filed to defer the payment service tax till completion of the income tax assessment under the Income Tax Act. 4. The learned standing counsel for the Income Tax would submit that, with regard to the assessment for the year 2013-14, the other formalities are over. In that view of the matter assessment for the year 2013-14 shall be completed as expeditiously as possible. In respect of the year 2014-15, it is submitted that, formalities not yet over and assessing authority cannot undertake completion unless formalities are over. The learned Standing Counsel would also submit that, the liability of the W.P.(C) Nos.9186 & 11917 of 2015 2 petitioner is totally based on independent proceedings. The petitioner cannot act on proceedings under the Income Tax Act to defer the payment of service tax under the Finance Act. 5. Considering the facts and circumstances and hearing the submissions of the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents, these writ petitions are disposed of with the following observations : W.P.(C).No.11917/2015 The assessment for the year 2013-14 shall be completed within three months. In respect of the year 2014-15, the assessment shall be completed as expeditiously as possible and as and when scrutinies are over. W.P.(C).No.9186/2015 In respect of service tax, it is submitted by the learned counsel for the petitioner that, they have made payments for 66,346/-, ₹ 24,41,565/- & 13,58,589/-. It is also submitted that, no further ₹ ₹ demand has been raised. Considering the said fact, future demand for service tax against the petitioner shall be deferred for a period of four months. Sd/- A.MUHAMED MUSTAQUE, JUDGE. AV "