PURE AGGREGATES PVT. LTD., V. INCOME TAX OFFICER,

WP(C)/23295/2023

AI Insights

The case involves Pure Aggregates Pvt. Ltd., a company engaged in the business of crop products, which filed a writ petition against the Income Tax Officer and the Deputy Commissioner of State Tax, challenging the show cause notices issued for alleged mismatches in GST returns. The petitioner argued that due to land acquisition proceedings under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, it faced financial difficulties, impacting its ability to pay taxes and comply with GST regulations. The respondents contended that the petitioner had been given opportunities to respond and that the notices had been finalized. The court dismissed the petition, emphasizing the availability of an alternative statutory remedy for the petitioner.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 748494 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-08-2023
• Assessment Year: misc
• Laws Referred To: Central Goods and Services Tax Act, 2017, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; THUSHARA JAMES
• Assessee Lawyers: T R S KUMAR; DEEPA MENON; DEENA JOSEPH; AKSHAY ADHIKARAM; THUSHARKRISHNAN; SONA PAULOSE; AMRUTHA PREMJITH
• Keywords: GST Liabilities; Income Tax; Land Acquisition; Show cause notice; Mismatching in filing
• Section: 74

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS WEDNESDAY, THE 2ND DAY OF AUGUST 2023 / 11TH SRAVANA, 1945 WP(C) NO. 23295 OF 2023 PETITIONER: PURE AGGREGATES PVT. LTD., DOOR NO. 9/587/1, AKKARA HOUSE, CHANDY'S LANE, IKKANDAWARRIYAR ROAD, THRISSUR, REP BY ITS MANAGING DIRECTOR JOSEPH A.C., AKKARA HOUSE, OLLUR P.O, THRISSUR, PIN – 680306 BY ADVS. T.R.S.KUMAR DEEPA R MENON DEENA JOSEPH AKSHAY JOSEPH ADHIKARAM THUSHARKRISHNAN K.U. SONA MARIA PAULOSE AMRUTHA PREMJITH RESPONDENTS: 1 INCOME TAX OFFICER, CENTRAL CIRCLE I, KANDAMKULATHI TOWER, OPP. MAHARAJA'S COLLEGE, M.G.ROAD, KOCHI, PIN – 682011 2 THE DEPUTY COMMISSIONER OFFICE OF THE DEPUTY COMMISSIONER STATE TAX (INTELLIGENCE), SQUAD NO.VII, STATE GOODS AND SERVICES TAX DEPARTMENT, KERALA, PALAKKAD, PIN – 678001 3 THE DEPUTY COMMISSIONER OF STATE TAX (ARREAR RECOVERY) STATE GST DEPARTMENT, PALAKKAD, PIN – 678001 OTHER PRESENT: SRI CHRISTOPHER AHRAHAM..SR GP SMT THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.23295/2023 -:2:- Dated this the 2nd day of August,2023 J U D G M E N T The writ petition is filed to quash Exts P10 to P12 show cause notices issued by the third respondent under Section 74 of the Central Goods and Services Tax Act, 2017 (in short,’CGST Act’). 2. The petitioner’s case is that, it is a private limited company doing business in crop products and allied materials. The petitioner’s property was acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013(Act of 2013). The petitioner was paying income tax and GST in accordance with law. The petitioner is a loser in the land acquisition proceedings. Due to the acquisition proceedings, the petitioner was unable to pay the income tax and the GST liabilities. The petitioner had paid its income tax W.P.(C)No.23295/2023 -:3:- dues as evidenced by Exts P5 to P7 without any irregularity. Yet, the second respondent has found that there was mismatching in filing in the GST returns filed by the petitioner. Consequently, the second respondent had issued Exts P10 to P12 show cause notices to the petitioner, under Section 74(5) of the CGST Act, 2017. The petitioner has submitted Exts P13 to P15 replies to the above show cause notices. Thereafter, the second respondent has again issued Exts P16 to P19 show cause notices. It was only because the compensation payable under the proceedings under the Act, 2013, got delayed, the petitioner was not in a position to pay any interest or penalty. Now, the third respondent has issued Exts P22 to P24 notices, to recover interest and penalty from the petitioner. The petitioner has no intention to evade tax and has not suppressed any fact. W.P.(C)No.23295/2023 -:4:- Nonetheless, the third respondent has not considered the matter in its proper perspective. Therefore, the entire proceedings commencing from Exts P10 to P12 and leading to Exts P22 to P24 are arbitrary and illegal. Hence, the writ petition. 3. Heard; Sri. T.R.S.Kumar, the learned counsel appearing for the petitioner, Sri. Christopher Abraham, the learned Standing Counsel appearing for the first respondent and Smt. Thushara James, the learned Senior Government Pleader appearing for the respondents 2 & 3. 4. Sri. Christopher Abraham submitted that the first respondent is not a necessary party in the writ petition. 5. The sheet-anchor of Sri. T.R.S.Kumar was that, notwithstanding the issuance of Exts P10 to P12 show cause notices, the respondents 2 & 3 have not W.P.(C)No.23295/2023 -:5:- finalised the proceedings. Therefore, the petitioner is left remediless. 6. Smt. Thushara James handed over the copy of the proceedings dated 22.10.2021, wherein it is seen that the petitioner was granted an opportunity for filing its reply and producing the evidence, and was also granted a personal hearing on 27.09.2021. On the said date, the Managing Director of the petitioner had appeared before the second respondent and prayed for time to pay the dues. But, no reply was filed or payment was made. Accordingly, the second respondent finalised Exts P10 to P12 show cause notices, as early as, on 22.10.2021. According to her, the allegation that Exts P10 to P12 have not been finalised, is incorrect. The petitioner has an alternative statutory remedy. 7. On an appreciation of the pleadings and W.P.(C)No.23295/2023 -:6:- materials on record, and the arguments advanced across the Bar, particularly the fact that independent orders dated 22.10.2021 have passed by the second respondent, I am satisfied that the proceedings leading to Exts P10 to P12 show cause notices have been finalised. 8. In the light of the orders passed by the second respondent and the petitioner having an alternative statutory remedy, I am not inclined to entertain the writ petition. Resultantly, the writ petition is dismissed, without prejudice to the right of the petitioner to work out its statutory remedies, if any available, in accordance with law. Sd/- C.S.DIAS,JUDGE DST/02.08.23 //True copy// P .A.To Judge W.P.(C)No.23295/2023 -:7:- APPENDIX PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF AWARD DATED 14.03.2022 EXHIBIT P2 TRUE COPY OF AWARD DATED 01.06.2022 EXHIBIT P3 TRUE COPY OF BANK STATEMENT DATED 28.11.2022 EXHIBIT P4 TRUE COPY OF INTERIM ORDER W.P(C) NO. 42563 0F 2022 DATED 02.03.2023 EXHIBIT P5 TRUE COPY OF ITR RETURNS DATED 03.07.2020 EXHIBIT P6 TRUE COPY OF ITR RETURNS DATED 06.07.2020 EXHIBIT P7 TRUE COPY OF ITR RETURNS DATED 31.03.2021 EXHIBIT P8 TRUE COPY OF SECTION 270 OF NOTICES DATED 20.03.2022 EXHIBIT P9 TRUE COPY OF SECTION 270 OF NOTICE DATED 20.03.2022 EXHIBIT P10 TRUE COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 01.07.2021 EXHIBIT P11 TRUE COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 01.07.2021 EXHIBIT P12 TRUE COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 01.07.2021 EXHIBIT P13 TRUE COPY OF REPLY NOTICE DATED 06.09.2021 EXHIBIT P14 TRUE COPY OF REPLY NOTICE DATED 06.09.2021 EXHIBIT P15 TRUE COPY OF REPLY NOTICE DATED 06.09.2021 EXHIBIT P16 TRUE COPY OF SHOW-CAUSE NOTICE ISSUED BY THE 2ND RESPONDENT DATED 14.09.2021 W.P.(C)No.23295/2023 -:8:- EXHIBIT P17 TRUE COPY OF SHOW CAUSE NOTICE DATED 16.09.2021 EXHIBIT P18 TRUE COPY OF SHOW CAUSE NOTICE DATED 16.09.2021 EXHIBIT P19 TRUE COPY OF SHOW CAUSE NOTICE DATED 16.09.2021 EXHIBIT P20 TRUE COPY OF PAYMENT RECEIPT DATED 15.12.2022 EXHIBIT P21 TRUE COPY OF PAYMENT RECEIPT DATED 15.12.2022 EXHIBIT P22 TRUE COPY OF RECOVERY NOTICE (3NOS) DATED 18.05.2023 EXHIBIT P23 TRUE COPY OF RECOVERY NOTICE DATED 18.05.2023 EXHIBIT P24 TRUE COPY OF RECOVERY NOTICE DATED 18.05.2023 EXHIBIT P25 TRUE COPY OF REQUEST LETTER DATED 26.05.2023 RESPONDENTS’ EXHIBITS: NIL "