The Writ Appeal against the Single Judge's refusal to restore cancelled GST registration was dismissed. The Division Bench held that no deposit had been made despite prior opportunity, precluding interference. Noting pending Council recommendations, the Court observed that remedies may lie under a future formal notification if issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN
&
THE HONOURABLE MR. JUSTICE T.R.RAVI
THURSDAY, THE 18TH DAY OF JUNE 2020 / 28TH JYAISHTA, 1942
WA.No.658 OF 2020
AGAINST THE JUDGMENT IN WP(C) 7518/2020(L) OF HIGH COURT OF KERALA
APPELLANT/S:
M/S MAGNAMIND VENTURES (P) LTD. 38/508, KINFRA INDUSTRIAL PARK, NELLAD, MAZHUVANNUR, ERNAKULAM -686669, REPRESENTED BY ITS MANAGER(PR), PRAVEEN K K.
BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI
RESPONDENT/S:
1 THE STATE OF KERALA, REPRESENTED BY ITS SECRETARY(TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, KERALA, 695001.
WA.No.658 OF 2020 2
110001, REPRESENTED BY ITS ADDITIONAL SECRETARY,
7 GOODS AND SERVICE TAX NETWORK, EAT WING, 4TH FLOOR, WORLD MARK -1, AEROCITY, NEW DELHI-110037, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.
R4-7 BY SREELAL N. WARRIER, SC, CENTRAL BOARD OF EXCISE & CUSTOMS R6-7 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA
SR.GP SRI.V.K.SHAMSUDHEEN
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 18.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WA.No.658 OF 2020 3
K.VINOD CHANDRAN
&
T.R.RAVI, JJ.
=========================
W.A NO.658 OF 2020
=========================
Dated this the 18th day of June, 2020
JUDGMENT
K.VINOD CHANDRAN,J
Read Order dated 26.05.2020:-
“The appellant is a private limited company engaged in carrying specialist service of dry cleaning, providing such services to hotels, airline companies and the like. The appellant had been delaying payment of Central Goods and Services tax as also the State Goods and Services Tax from year 2017 onwards. Payments were made with long delay, on which no action was taken. However, when there was consistent default and the dues mounted uncontrollably, the department took action through the 4th respondent.
2. The 4th respondent issued show cause notice which is produced as Ext.P8 to which the appellant replied by Ext.P9 agreeing to pay off the entire overdue amounts in 12 equal monthly installments of Rs.9 lakhs each. The request was made by Ext.P9 dated 25.02.2020. There has been no
WA.No.658 OF 2020 4
deposit made, according to the learned Standing Counsel appearing for the Department. The Department hence cancelled the registration. The learned Single Judge refused to exercise discretion since the petitioner could pay the entire defaulted amounts and revive the
registration.
3. The learned Counsel for the appellant submits before us that the appellant had always been ready and willing to make installments, but, however, his registration was cancelled. There was no mode by which the payment could be made since the payments are made online. The learned Counsel also pleads; citing the extraordinary situation created by the pandemic and the resultant lock down, which resulted in the establishment remaining closed in the preceding months.
4. On 21.05.2020 when the matter came up for admission we directed the learned Counsel to get specific instructions as to how much amounts can be paid. We specifically pointed out that the installments as agreed to by the appellant had to commence by March 2020. By May,
WA.No.658 OF 2020 5
there would have been at least Rs.30 lakhs paid. We direct the appellant to ensure payment of the said amounts before 15.06.2020. WE hence post the case to 09.06.2020 for further orders, on the appellant agreeing to pay the said amount.”
there was neither deposit made nor even an offer
from the appellant as to a specific amount being deposited within a specified period. In such circumstances, we are of the opinion that no interference can be made to the judgment of the learned Single Judge.
the Goods and Services Tax Council has made some
recommendations for extension of period for seeking revocation of cancellation of
registration.
department informs us that, a formal notification has not been brought out. In such circumstances,
if a notification is brought out and the
WA.No.658 OF 2020 6
appellant is entitled under the same, the appellant could seek his remedy under that
notification, despite the dismissal of the Writ Appeal.
The Writ Appeal is dismissed with the above
observation.
Sd/-
K.VINOD CHANDRAN
JUDGE
Sd/-
T.R.RAVI
JUDGE
uu
18.06.2020
2 issues framed by the court
Whether the High Court can interfere with the Single Judge's refusal to restore the appellant's GST registration cancelled for prolonged non-payment of dues despite a request for installment payments.
Whether the G.S.T. Council's recommendations regarding extension of deadlines for revocation of cancellation could apply to the appellant in absence of a formal notification.
M/s Magnamind Ventures (P) Ltd.
State of Kerala
Commercial Tax Officer
Commissioner of Kerala State GST
Superintendent of Central Tax and Central Excise
Chief Commissioner of Central Taxes
K.Vinod Chandra
T.R.Ravi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
