Case Law Details
Ochanthuruth Service Cooperative Bank Ltd. Vs State Tax Office (Kerala High Court)
Introduction: In a recent case, Ochanthuruth Service Cooperative Bank Ltd. challenged an assessment order under the Kerala State Goods and Services Tax (KGST) Act, 2017, before the Kerala High Court. The court’s directive regarding the availment of alternate remedies sheds light on the procedural aspect of tax disputes.
Detailed Analysis: The petitioner, Ochanthuruth Service Cooperative Bank Ltd., contested Ext.P1, an assessment order issued under the KGST Act, before the Kerala High Court. The government pleader argued that show cause notices were issued to the petitioner prior to the completion of assessment, but the petitioner failed to respond or appear before the officer.
The court, after hearing arguments from both sides, concluded that the petitioner had not presented sufficient grounds for interference with Ext.P1 under Article 226 of the Constitution of India. Instead, the court directed the petitioner to avail appellate remedies within the stipulated time frame.
Given that the time limit for filing an appeal had not yet expired, the court instructed the petitioner to file an appeal along with a stay petition by January 31, 2024. Furthermore, the court ordered that any recovery proceedings based on Ext.P1 would be suspended until the appellate authority decides on the stay application.
This decision highlights the importance of adhering to procedural requirements and exhausting alternate legal remedies available to taxpayers. By directing the petitioner to pursue appellate avenues, the court ensures fairness and adherence to legal procedures in resolving tax disputes under the KGST Act.
Conclusion: The Kerala High Court’s directive to Ochanthuruth Service Cooperative Bank Ltd. to avail alternate remedies against the assessment order under the KGST Act underscores the significance of procedural compliance and the pursuit of legal recourse in tax matters. This decision reaffirms the principle of due process and provides clarity on the course of action for taxpayers facing assessment disputes.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner has approached this Court challenging Ext.P1 order of assessment under the provisions of the Kerala State Goods and Services Tax Act, 2017.
2. Learned Government Pleader would submit that, show cause notices were issued to the petitioner prior to the completion of assessment by Ext.P1 order and the petitioner failed to file any reply or appear before the officer. It is submitted that Ext.P1 is an appealable order and the time limit for filing an appeal is till 31-01-2024.
3. Having heard the learned counsel for the petitioner, the learned Government Pleader and the learned Standing Counsel appearing for the 4th respondent, I am of the view that the petitioner has not made out any case for interference with Ext.P1 in exercise of the jurisdiction vested in this Court under Article 226 of the Constitution of India. It is for the petitioner to avail appellate remedies in accordance with the law. Since the time for filing an appeal has not yet expired, it is directed that, if the petitioner files an appeal along with a stay petition on or before 31-01-2024, any recovery proceedings on the basis of Ext.P1 order of assessment shall be suspended till a decision is taken by the appellate authority on the application for stay to be filed by the petitioner.
Writ petition is disposed of as above.
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