Quashed

M.K.Haji Orphanage Hospital v. the State of Kerala

Kerala HC11 Oct 2019WP(C)/3038/2019

Case brief

AI extract

What is this about?

The Court quashed an assessment order that denied tax exemption to an orphanage hospital under the KVAT Act, ruling it unsustainable as it contradicts a prior Full Bench judgment. The assessating authority was directed to complete the assessment afresh after an opportunity of hearing within one month.

What did the court decide?

Petitioner directed to appear for hearing on 04.11.2019 at 11 am; 2nd respondent directed to complete assessment afresh within one month.

M.K.Haji Orphanage Hospital Vs the 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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FRIDAY, THE 11TH DAY OF OCTOBER 2019 / 19TH ASWINA, 1941

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WP(C).No.3038 OF 2019(D)

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PETITIONER:

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M/S.M.K.HAJI ORPHANAGE HOSPITAL THIRURANGADI, MALAPPURAM DIST, KERALA-676 306, REPRESENTED BY ITS SECRETARY M.K.ABDHUL RAHIM

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BY ADVS. SRI.HUSSAIN KOYA VALIYAVEEDAKATH SRI.T.M.MUHAMED HAFEES K. ANAND

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RESPONDENTS:

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1 THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO THE GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM 695 001.

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2 THE STATE TAX OFFICER, OFFICE OF THE STATE TAX OFFICER, DEPT. OF STATE GOODS AND SERVICES TAXES, TIRURANGADI, MALAPPURAM -676 306

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3 THE COMMERCIAL TAX OFFICER, OFFICE OF THE COMMERCIAL TAXES, DEPT. OF COMMERCIAL TAXES, TIRURANGADI, MALAPPURAM 676 306.

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R1-3 BY GOVERNMENT PLEADER SMT.M.M.JASMINE

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11.10.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.3038 OF 2019(D)

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JUDGMENT

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The challenge in the Writ Petition is against Ext.P1 assessment order passed in relation to the petitioner for the assessment year 2012-2013 under the Kerala Value Added Tax Act (herein after referred to as 'the KVAT Act'). The petitioner also challenges Exts.P3 and P4 notices that were issued to the petitioner prior to the finalisation of the assessment by Ext.P1 assessment order. The challenge in the Writ Petition against Ext.P1 assessment order is premised primarily on the denial of exemption to the petitioner under Section 18 (C) of the KVAT Act. It is also pointed out that even if the claim for exemption was not accepted by the assessing authority, it still could not have completed the assessment in the manner indicated in Ext.P1 assessment order since the same would go against Ext.P6 judgment of a Full Bench of this Court in W.A.No.1971 of 2012 and connected cases.

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I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondents.

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WP(C).No.3038 OF 2019(D)

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On a consideration of the facts and circumstances of the case and the submissions made across the bar, I find force in the contention of the learned counsel for the petitioner that Ext.P1 assessment order cannot be legally sustained in the light of Ext.P6 judgment of the Full Bench of this Court referred to Supra. Resultantly, I quash Ext.P1 order and direct the 2^nd respondent to complete the assessment under the KVAT Act in relation to the petitioner for the assessment year 2012-2013 afresh, after affording the petitioner an opportunity of hearing and considering the ratio in Ext.P6 judgment of this Court. To enable the 2^nd respondent to do so, I direct the petitioner to appear before the 2^nd respondent at his office at 11 am on 04.11.2019. The 2^nd respondent shall pass fresh orders of assessment as directed within a period of one month thereafter.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns

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WP(C).No.3038 OF 2019(D)

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE SAID NOTICE ISSUED BY THE 3RD RESPONDENT DATED 10.1.2019 EXHIBIT P2 TRUE COPY OF THE REPLY NO MKH/D-10/2014 DATED 15.12.2014 EXHIBIT P3 TRUE COPY OF THE NOTICE UNDER FORM NO 17 OF THE KVAT RULES 2005 DATED 16.4.2015 EXHIBIT P4 TRUE COPY OF THE NOTICE NO 32100660303/12-13 DATED 22.12.2018 EXHIBIT P5 TRUE COPY OF THE REPLY NO MKH/D-10/2019 DATED 7.1.2019 EXHIBIT P6 TRUE COPY OF THE INTERIM ORDER IN WA 1971/2012 DATED 18.1.2019

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RESPONDENTS EXHIBITS:NIL

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//TRUE COPY//

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P.A TO JUDGE

M.K.Haji Orphanage Hospital v. the State of Kerala

Case brief

What is this about?

What did the court decide?

M.K.Haji Orphanage Hospital v. the State of Kerala

Case brief

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What did the court decide?

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