Case Law Details
Deepu Prasad Kini Vs State Tax Officer (Kerala High Court)
Kerala High Court remanded the matter back to Appellate Authority since fact that the grant of discount has no tax effect under CGST has not been considered. Accordingly, order quashed and restored back.
Facts- The short issue is regarding the treatment of the amount of discount received by the petitioners from their suppliers. The petitioner submits that there is no tax effect on account of the discount granted and that the matter has not been considered properly by the Appellate Authority or by the Assessing Authority and he will be satisfied if the matter is remanded to the appellate Authority for fresh consideration.
Conclusion- Held that the matter can be remanded to the Appellate Authority for fresh consideration as it does not appear from the original order or from the appellate order (in both cases) that this issue has been considered in a proper perspective. The fact that the grant of discount has no tax effect has not been considered. The fact that the supplier/or the petitioner have not sought for any refund of tax has also not been considered.
Accordingly, order are quashed and the respective appeals filed by the petitioners against order of assessment (in both the cases) are restored to the file of the First Appellate Authority, who shall pass fresh orders, after affording an opportunity of hearing to the petitioners.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The issues raised in these writ petitions are intrinsically connected to each other and hence they are disposed of by a common judgment. The short issue is regarding the treatment of the amount of discount received by the petitioners from their suppliers.
2. Learned counsel appearing for the petitioner submits that there is no tax effect on account of the discount granted and that the matter has not been considered properly by the Appellate Authority or by the Assessing Authority and he will be satisfied if the matter is remanded to the appellate Authority for fresh consideration.
3. Though the learned Government Pleader attempted to establish that the remedy of the petitioner against the appellate order is to file a second appeal under Section 112 of the CGST/SGST Acts, considering the limited nature of relief now sought for by the petitioner, I am of the view that the matter can be remanded to the Appellate Authority for fresh consideration as it does not appear from the original order or from the appellate order (in both cases) that this issue has been considered in a proper perspective. The fact that the grant of discount has no tax effect has not been considered. The fact that the supplier/or the petitioner have not sought for any refund of tax has also not been considered.
Accordingly, Ext.P2 order in W.P.(C.) No. 19872 of 2023 and Ext.P2 order in WP(C) Nos.28018 of 2023 are quashed and the respective appeals filed by the petitioners against Ext.P1 order of assessment (in both the cases) are restored to the file of the First Appellate Authority, who shall pass fresh orders, after affording an opportunity of hearing to the petitioners. It is made clear that orders (Ext.P2 in both cases) are set aside only to the extent that they consider the issue related to discount received by the petitioners and on no other issues.
The writ petitions are disposed of as above.
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