Case Law Details
Aji Thomas Vs State Tax Officer (Kerala High Court)
Introduction: In a recent case before the Kerala High Court, Aji Thomas challenged an order (Ext.P5) passed by the State Tax Officer under the provisions of the Kerala Value Added Tax (KVAT) Act. Thomas alleged that the order erroneously imposed a significant tax liability on him, relying on financial documents of another company he was associated with. However, the High Court dismissed the writ appeal, citing lack of merit.
Detailed Analysis: Aji Thomas, the proprietor of M/s. Blue Seven Star Constructions Private Limited, contested the assessment order for the year 2016-17, arguing that he was unfairly burdened with tax liability based on financial data from M/s Blue Seven Star Constructions Private Limited, a company where he held a managerial position. Thomas claimed that since his construction business did not involve material supply and had minimal activity, registration under the KVAT Act was unnecessary.
The State Tax Officer initiated an enquiry under Section 47(6) of the KVAT Act after suspecting suppression of total turnover and tax evasion by Thomas’s proprietorship. Despite being served a notice and given an opportunity to respond, Thomas failed to produce the requested documents or submit a reply. Consequently, the assessment order was passed, adhering to statutory formalities.
While Thomas challenged the order in a writ petition, the High Court ruled that the matter involved disputed questions of fact, unsuitable for adjudication via writ petition. Additionally, despite the order being passed in February 2020, Thomas had not filed an appeal against it. The court found no merit in Thomas’s appeal and dismissed it accordingly.
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