Kerala State Self-Financing B. Pharm College Management Association Vs Intelligence Officer (Kerala High Court)
The Kerala High Court examined a writ petition filed by an association of 36 self-financing pharmacy colleges challenging a show cause notice issued under Section 63 of the CGST/KGST Act proposing tax assessment and penalty. The petitioner contended that the notice was legally unsustainable on two primary grounds: first, it was a composite notice covering multiple assessment years; and second, it reflected a pre-determined conclusion that the petitioner was liable for GST registration and tax, despite the petitioner’s claim of exemption under entry 66(b)(iv) of Notification No. 12/2017 relating to services connected with admission or conduct of examinations.
The petitioner argued that the preliminary issue of whether it was required to obtain GST registration had to be decided before initiating assessment proceedings. However, the language of the notice indicated that the authority had already concluded that the petitioner was liable to register and pay tax and penalty. The respondent contended that the issue of registration and tax liability would be determined after examining relevant documents and the nature of services provided.
Upon consideration, the Court found that the show cause notice was a composite notice issued for multiple assessment years, which had already been held to be legally unsustainable by earlier Division Bench decisions. On this ground alone, the Court held that interference was warranted.
