Dismissed

M/S. Silverstone Rubber India Pvt. Ltd. v. State of Kerala

Kerala HC14 Oct 2019WP(C)/11775/2019

Case brief

AI extract

What is this about?

High Court of Kerala dismissed three writ petitions challenging penalty orders under KVAT Act. The court held that natural justice was not violated as the petitioner had prior notice and opportunity to show cause, having been granted an adjournment earlier. Recovery proceedings were kept in abeyance for three weeks.

What did the court decide?

Recovery proceedings kept in abeyance for three weeks; petitioners directed to produce copy of judgment before Appellate Authority.

M/S. Silverstone Rubber India Pvt. Ltd. Vs State of Kerala — GST and Indirect Tax | Kerala HC (2019)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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MONDAY, THE 14TH DAY OF OCTOBER 2019/22ND ASWINA, 1941

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W.P(C).No.11775 OF 2019(V)

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PETITIONER:

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M/S. SILVERSTONE RUBBER INDIA PVT LTD THAVAKKAL, VITHURA NEDUMANGAD, THIRUVANANTHAPURAM-695551 REPRESENTED BY ITS MANAGING DIRECTOR SHRI.K.J JACOB

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BY ADVS.SRI.G.HARIKUMAR (GOPINATHAN NAIR) SHRI.AKHIL SURESH

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RESPONDENTS:

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1 STATE OF KERALA REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001.

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2 THE STATE TAX OFFICER, SQUAD.NO.VII, SGST DEPARTMENT, NEYYATTINKARA, THIRUVANANTHAPURAM-682018

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3 THE ASSISTANT COMMISSIONER, SPECIAL CIRCLE, SGST DEPARTMENT, TAX TOWER, THIRUVANANTHAPURAM-695002

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R1-3 BY SMT.THUSHARA JAMES, GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.10.2019 ALONG WITH W.P(C).11790/2019(W) & W.P(C).11850/2019(E), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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MONDAY, THE 14TH DAY OF OCTOBER 2019/22ND ASWINA, 1941

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W.P(C).No.11790 OF 2019(W)

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PETITIONER:

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M/S.SILVERSTONE RUBBER INDIA PVT LTD THAVAKKAL, VITHURA, NEDUMANGAD, THIRUVANANTHAPURAM-695551 REPRESENTED BY ITS MANAGING DIRECTOR SHRI.K.J.JACOB

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BY ADVS.SRI.G.HARIKUMAR (GOPINATHAN NAIR) SHRI.AKHIL SURESH

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RESPONDENTS:

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1 STATE OF KERALA REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001

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2 THE STATE TAX OFFICER, SQUAD NO.VII, SGST DEPARTMENT, NEYYATTINKARA, THIRUVANANTHAPURAM-682018.

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3 THE ASSISTANT COMMISSIONER, SPECIAL CIRCLE, SGST DEPARTMENT, TAX TOWER, THIRUVANANTHAPURAM-695002.

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R1-3 BY SMT.THUSHARA JAMES, GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.10.2019 ALONG WITH W.P(C).NO.11775/2019(V) & W.P(C).NO.11850/2019(E), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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MONDAY, THE 14TH DAY OF OCTOBER 2019/22ND ASWINA, 1941

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W.P(C).No.11850 OF 2019(E)

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PETITIONER:

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M/S.SILVERSTONE RUBBER INDIA PVT LTD THAVAKKAL, VITHURA, NEDUMANGAD, THIRUVANANTHAPURAM-695 551, REPRESENTED BY ITS MANAGING DIRECTOR SHRI.K.J.JACOB

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BY ADVS.SRI.G.HARIKUMAR (GOPINATHAN NAIR) SHRI.AKHIL SURESH

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RESPONDENTS:

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1 STATE OF KERALA REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001

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2 THE STATE TAX OFFICER, SQUAD NO.VII,SGST DEPARTMENT, NEYYATTINKARA, THIRUVANANTHAPURAM-682 018

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3 THE ASSISTANT COMMISSIONER, SPECIAL CIRCLE, SGST DEPARTMENT, TAX TOWER, THIRUVANANTHAPURAM-695 002.

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R2 BY SMT.THUSHARA JAMES, GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.10.2019 ALONG WITH W.P(C).NO.11775/2019(V) & W.P(C).NO.11790/2019(W), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 4 :

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J U D G M E N T

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In these writ petitions, the petitioner impugns Ext.P2 penalty orders passed under the Kerala Value Added Tax Act for the assessment years 2012-13, 2013-14 and 2014-15. The thrust of the arguments made by the learned counsel for the petitioner in all these cases is that before passing the impugned orders, the petitioner was not afforded an opportunity of hearing by the Adjudicating Authority. I notice from a perusal of the impugned orders, however, that the petitioner had responded to a hearing notice on an earlier occasion and sought for an adjournment for two weeks, since the Accountant, who was dealing with the matter, had left the services of the Company and the new incumbent had yet to study the matter. The request was considered and an adjournment was granted to the petitioner. Thereafter, the petitioner was asked to appear on another date, on which date, nobody appeared, and it was under those circumstances and finding that the petitioner had not responded to

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 5 :

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the notice of hearing nor filed any adjournment letter seeking an adjournment on that day, that the adjudicating authority proceeded to finalise the penalty proposal. The facts being such, I am of the view that the impugned orders of the Adjudicating Authority cannot be said to have occassioned a non-compliance with the rules of natural justice warranting an interference with the said orders in these proceedings under Article 226 of the Constitution of India. I also do not find the impugned orders to be vitiated by any other jurisdictional defect. The petitioner also has an effective alternate remedy by way of an appeal against the impugned orders before the Appellate Authority. I therefore dismiss these writ petitions, in their challenge against the impugned orders, and relegate the petitioners to their alternate remedy of filing appeals against the impugned orders.

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Taking note of the submission of the learned counsel for the petitioner that the petitioner would require some time to move the Appellate Authority, I direct that recovery proceedings, for recovery of amounts confirmed against the petitioner by Ext.P2 penalty orders, shall be kept in abeyance for a period of three weeks, so as to enable the petitioner to approach the Appellate Authority, in the

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 6 :

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meanwhile. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the Appellate Authority, for further action.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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prp/14/10/19

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 7 :

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APPENDIX OF W.P(C).NO.11775/2019

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PETITIONER'S EXHIBITS:

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EXHIBIT P1	A TRUE COPY OF THE NOTICE UNDER SECTION 67(1) OF THE KVAT ACT DATED 31.12.2018
EXHIBIT P2	A TRUE COPY OF THE PENALTY ORDER NO.C.R.NO.26/2014-15(2012-13) DT. 27.02.2019 PASSED BY 2ND RESPONDENT
EXHIBIT P3	A TRUE COPY OF THE AFFIDAVIT DATED 02.04.2019 OF SHRI.SURENDRAN, ADVOCATE FILED BEFORE THIS HON'BLE COURT
EXHIBIT P4	A TRUE COPY OF FORM JJ, TRANSPORTING DOCUMENTS AND CHECK POST DATA DATED 22.03.2012 OF THE PETITIONER
EXHIBIT P5	A TRUE COPY OF ASSESSMENT ORDER NO.320101 25354/2012-13 DATED 04.08.2014 PASSED BY THE 3RD RESPONDENT
EXHIBIT P6	A TRUE COPY OF LETTER NO.C2/36924/11/CT DT. 17- 11-2011 OF THE COMMISSIONER OF COMMERCIAL TAXES.
RESPONDENTS EXHIBITS :	NIL.
	//TRUE COPY//

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P.S. TO JUDGE

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 8 :

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APPENDIX OF W.P(C).NO.11790/2019

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PETITIONER'S EXHIBITS:

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EXHIBIT P1: TRUE COPY OF THE NOTICE UNDER SECTION 67(1) OF THE KVAT ACT DATED 31.12.2018.

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EXHIBIT P2: TRUE COPY OF THE PENALTY ORDER NO.CR.NO.26/2014-15 (201415) DT. 27.02.2019 PASSED BY 2ND RESPONDENT.

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EXHIBIT P3: TRUE COPY OF THE AFFIDAVIT DATED 02.04.2019 OF SHRI.SURENDRAN, ADVOCATE FILED BEFORE THIS HON'BLE COURT.

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EXHIBIT P4: TRUE COPY OF FORM JJ, TRANSPORTING DOCUMENTS AND CHECK PORT DATA DATED 22.03.2012 OF THE PETITIONER.

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EXHIBIT P5: TRUE COPY OF ASSESSMENT ORDER NO.320101 25354/2012-13 DATED 04.08.2014 PASSED BY THE 3RD RESPONDENT.

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RESPONDENTS EXHIBITS: NIL.

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//TRUE COPY//

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P.S. TO JUDGE

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W.P.(C).Nos.11775, 11790 & 11850/2019

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: 9 :

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APPENDIX OF W.P(C).NO.11850/2019

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PETITIONER'S EXHIBITS:

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EXHIBIT P1: A TRUE COPY OF THE NOTICE UNDER SECTION 67(1) OF THE KVAT ACT DATED 31.12.2018.

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EXHIBIT P2: A TRUE COPY OF THE PENALTY ORDER NO.CR.NO.26/2014-15(201314) DT. 27.02.2019 PASSED BY 2ND RESPONDENT.

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EXHIBIT P3: A TRUE COPY OF THE AFFIDAVIT DATED 02.04.2019 OF SHRI.SURENDRAN, ADVOCATE FILED BEFORE THIS HON'BLE COURT.

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EXHIBIT P4: A TRUE COPY OF FORM JJ, TRANSPORTING DOCUMENTS AND CHECK POST DATA DATED 22.03.2012 OF THE PETITIONER.

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EXHIBIT P5: A TRUE COPY OF ASSESSMENT ORDER NO.32101 25354/2012-13 DATED 04.08.2014 PASSED BY THE 3RD RESPONDENT.

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EXHIBIT P6: A TRUE COPY OF RELEVANT PAGES OF THE ANNUAL REPORT FOR THE YEAR 2013-14.

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RESPONDENTS EXHIBITS: NIL.

M/S. Silverstone Rubber India Pvt. Ltd. v. State of Kerala

Case brief

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What did the court decide?

M/S. Silverstone Rubber India Pvt. Ltd. v. State of Kerala

Case brief

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