KERALA VYAPARI VYVASAYI EKOPANA SAMITHI V. THE COMMISSIONER OF COMMERCIAL TAXES

WP(C)/8040/2016

AI Insights

The case involves the Kerala Vyapari Vyvasayi Ekopana Samithi, Malappuram District Committee, represented by its General Secretary, E.K.Abdulla, who filed a writ petition seeking directions for the respondents to provide sufficient opportunity for presumptive dealers to file objections upon receiving notices under Section 25(1) of the KVAT Act. The petition also sought directions to ensure that input tax credit is granted to presumptive dealers despite any assessments denying them the lower rate of presumptive tax. The court referenced a prior judgment and a subsequent circular from the Commissioner of Commercial Taxes that addressed the petitioner's concerns about the notice response time. The legislative amendment concerning input tax credit for presumptive dealers was also acknowledged, leading to the disposal of the petition.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 732876 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-03-2016
• Assessment Year: misc
• Other Referred Cases: WPC NO.30189/2015
• Laws Referred To: Kerala Value Added Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: LILLY T
• Assessee Lawyers: BABU NAIR; SMITHA BABU
• Keywords: Assessment; Input tax credit; KVAT Act; Notices; Presumptive dealers
• Section: 25(1); 25C

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 2ND DAY OF MARCH 2016/12TH PHALGUNA, 1937 WP(C).No. 8040 of 2016 (D) --------------------------------- PETITIONER : ------------------ KERALA VYAPARI VYVASAYI EKOPANA SAMITHI, MALAPPURAM DISTRICT COMMITTEE, REPRESENTED BY ITS GENERAL SECRETARY, E.K.ABDULLA @ CHERI, S/O. MUHAMMED. BY ADVS. SRI. BABU S. NAIR SMT. SMITHA BABU RESPONDENTS : ---------------------- 1. THE COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM, PIN - 695 001. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, MALAPPURAM, PIN - 676 505. 3. THE COMMERCIAL TAX OFFICER , MALAPPURAM, PIN - 676 505. 4. THE COMMERCIAL TAX OFFICER, MANJERI, MALAPPURAM DISTRICT, PIN - 676 121. 5. THE COMMERCIAL TAX OFFICER, NILAMBUR, MALAPPURAM DISTRICT, PIN - 679 329. 6. THE COMMERCIAL TAX OFFICER, PERINTHALMANNA, MALAPPURAM DISTRICT, PIN - 679 322. 7. THE COMMERCIAL TAX OFFICER, PONNANI, MALAPPURAM DISTRICT, PIN - 679 577. 8. THE COMMERCIAL TAX OFFICER, TIRUR, MALAPPURAM DISTRICT, PIN - 676 101. Contd.........2/- : 2 : 9. THE COMMERCIAL TAX OFFICER, TIRURANGADI, MALAPPURAM DISTRICT, PIN - 676 306. 10. THE COMMERCIAL TAX OFFICER, KOTTAKKAL, MALAPPURAM DISTRICT, PIN - 676 503. BY GOVERNMENT PLEADER SMT. LILLY K. T. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 8040 of 2016 (D) ------------------------------------- APPENDIX PETITIONER'S EXHIBITS : ----------------------------------- EXHIBIT P1(A) TO P1(F) : TRUE COPIES OF THE NOTICES ISSUED TO THE DEALERS UNDER SECTION 25(1) FROM THE OFFICE OF THE COMMERCIAL TAXES, MANJERI. EXHIBIT P2 : TRUE COPY OF THE JUDGMENT DATEDTD.9.10.2015 IN WPC NO.30189/2015 OF THIS HON'BLE COURT. RESPONDENTS' EXHIBITS : NIL --------------------------------------- //TRUE COPY// P. A. TO JUDGE SKK A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.8040 Of 2016 ............................................................. Dated this the 2nd day of March, 2016 J U D G M E N T The writ petition, which is filed by an association on behalf of the members, seeks a direction to the respondents to afford sufficient opportunity to presumptive dealers to file their objections, in case of issuance of notice under Section 25(1) of the Kerala Value Added Tax Act (hereinafter referred to as the KVAT Act) in the event of there being any defect in the returns submitted by such dealers. There is also a prayer for a direction to the respondents to grant input tax credit for the presumptive dealers in the event of any assessment or other proceedings initiated by the assessing authority denying the eligibility to the lower rate of presumptive tax. When the matter was taken up for admission, it was pointed out that, pursuant to Ext.P2 judgment of this Court, the Commissioner of Commercial Taxes had issued a Circular, bearing No.27 of 2015 and dated 11.11.2015, instructing the field offices to comply with the requirement of granting sufficient time to dealers to respond to notices issued for assessment under -2- W.P.(C). No.8040 of 2016 Section 25(1) of the KVAT Act. I find that, the said Circular addresses the 1st grievance of the petitioner in the present writ petition. As regards the further apprehension of the petitioner with regard to denial of income tax credit, I find that as per the provisions of Section 25C as amended vide the Finance Act, 2014, the said issue has already been addressed by the legislature. I have no reason to believe that the statutory provisions would be ignored by the assessing authorities while completing the assessment in relation to assessees who are taxed on presumptive basis. No further issue remains to be addressed in the present writ petition and the writ petition is disposed accordingly. A.K.JAYASANKARAN NAMBIAR JUDGE mns/2.3.16 "