The High Court quashed penalty orders and recovery certificates issued under the KGST Act. Relying on a prior ruling that Section 5BA of the KGST Act is unconstitutional, the Court held that liability for non-payment of tax under that void provision could not exist.
Exhibits P3 to P6 are quashed and the writ petition is disposed of.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE ANTONY DOMINIC
TUESDAY, THE 11TH DAY OF SEPTEMBER 2012/20TH BHADRA 1934
WP(C).No. 2705 of 2008 (V)
PETITIONER(S):
A.M.DISTRIBUTOR, COIMBATORE ROAD, PALAKKAD, REPRESENTED BY ITS PROPRIETOR A.ARULMURUGAN.
BY ADV. SRI.A.KUMAR
RESPONDENT(S):
1. THE INTELLIGENCE INSPECTOR, INTELLIGENCE SQUAD NO.VI, DEPARTMENT OF COMMERCIAL TAXES, PALAKKAD.
2. THE ADDITIONAL SALES TAX OFFICER-I, IIND CIRCLE, PALAKKAD.
3. INSPECTING ASSISTANT COMMISSIONER, INTELLIGENCE, PALAKKAD.
4. THE DISTRICT COLLECTOR, PALAKKAD.
5. THE DISTRICT COLLECTOR, COIMBATORE.
BY SPL. GOVERNMENT PLEADER DR. SEBASTIAN CHAMPAPPILLY
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11-09-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
DCS
WP(C).No. 2705 of 2008 (V)
APPENDIX
PETITIONER(S) EXHIBITS :-
RESPONDENTS' EXHIBITS :- NIL
//TRUE COPY//
P.A. TO JUDGE
DCS
ANTONY DOMINIC,J
W.P.(C)No.2705 of 2008
Dated this the 11th day of September, 2012
JUDGMENT
Petitioner has approached this Court challenging Ext.P3 and also Exts.P4 to P6 issued under the Revenue Recovery Act for realizing the penalty that was levied under Ext.P3. Penalty was levied on the petitioner on account of non payment of the tax under Section 5BA of the KGST Act. In Commercial Corporation of India v. Addl. Sales Tax Officer(2007 (2) KLT 397), this Court held Section 5BA of the KGST Act to be unconstitutional. If that be so, non payment of tax under Section 5BA could not have visited the petitioner with liability for penalty. Therefore, Ext.P3 order, cannot be sustained. Consequently, Exts.P4 to P6 issued to recover the amount under Ext.P3 are also unsustainable.
Hence, quashing Exts.P3 to P6, the writ petition is disposed of.
ANTONY DOMINIC, JUDGE
ln
1 issue framed by the court
Whether the penalty order levied under Section 5BA of KGST Act is sustainable after the section was held unconstitutional.
Colour shows how this judgement treated each authority
Commercial Corporation of India v. Addl. Sales Tax OfficerRelied on¶38
Commercial Corporation of India v. Addl. Sales Tax Officer(2007 (2) KLT 397)
1 provisions across 1 enactments
A.M.Distributor, Coimbatore Road, Palakkad
The Intelligence Inspector, Intelligence Squad No.VI, Department of Commercial Taxes, Palakkad
The Additional Sales Tax Officer-I, IInd Circle, Palakkad
Inspecting Assistant Commissioner, Intelligence, Palakkad
The District Collector, Palakkad
The District Collector, Coimbatore
Antony Dominic
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
