Premier Auto Sales & Service Vs Additional Commissioner (Kerala High Court)
In a recent judgment, the Kerala High Court addressed the legal battle between Premier Auto Sales & Service, a registered dealer under CGST and Kerala SGST, and the Additional Commissioner. The court’s decision on the writ petition under Article 226 of the Constitution of India has significant implications for the business’s GST liability.
Detailed Analysis:
The dispute revolves around the order dated 24.3.2023 (Ext.P4), wherein the first respondent confirmed a demand of Rs.8,27,93,915/- related to IGST, CGST, SGST, and Cess under Section 73(1) of the CGST Act and Kerala SGST Act. A penalty of Rs.82,79,392/- was also imposed under Section 73(9) read with Section 73(11) of the CGST Act and Kerala SGST Act, along with Section 20 of the IGST Act.
Premier Auto Sales, a partnership firm specializing in “motor cars and other motor vehicles,” faced allegations of not filing GSTR-3B returns from May 2018 to January 2019, leading to a summons for investigation. The petitioner’s response triggered a show cause notice (Ext.P1), demanding the aforementioned amount. Despite filing the GSTR-3B return and depositing Rs.8,21,56,286/-, the order (Ext.P4) was contested in the High Court.
The court emphasized its role in judicial review, stating that the order was within jurisdiction and compliant with natural justice. It highlighted the petitioner’s right to appeal under Section 107 of the CGST Act, with an extended deadline until 31.1.2024, as per notification No.53/23.
