The court dismissed the writ petition challenging a GST notice. It held that GST is deductible on the license fee itself rather than on the separate charges collected from the public for toilet usage, finding the demand under Section 7(1A) valid.
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 DINESH KUMAR SINGH
FRIDAY, THE 10TH DAY OF NOVEMBER 2023 / 19TH KARTHIKA, 1945
WP(C) NO. 16056 OF 2020
PETITIONER:
HAMSA KOYA K.T.
AGED 54 YEARS
ELAVANAKANDY PARAMBA, PANICKER ROAD, NEAR M.E.S.COLLEGE,
NADAKKAVU P.O., KOZHIKKODE, PIN-673 011.
BY ADV B.PREMNATH (E)
RESPONDENTS:
1GOVERNMENT OF KERALA
REPRESENTED BY THE ADDITIONAL CHIEF SECRETARY, FINANCE
DEPARTMENT, ROOM NO.396, FIRST FLOOR, NEAR SOUTH CONFERENCE
HALL, MAIN BLOCK, SECRETARIAT, THIRUVANANTHAPURAM-695001.
GOVERNMENT OF KERALA, REPRESENTED BY THE SECRETARY, TAXES
(B) DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM – 695 001.
IS SUBSITITUTEDIN PLACE OF EXISTING RESPONDENT AS PER ORDER
DATED 14.09.2020 IN IA 2/2020.
2 KERALA TRANSPORT DEVELOPMENT FINANCE CORPORATION LTD., A GOVERNMENT OF KERALA UNDERTAKING, REGISTERED OFFICE AT LEVEL 8 (6TH FLOOR), TRANS TOWERS, VAZHUTHACAUD, THIRUVANANTHAPURAM-14, REPRESENTED BY ITS MANAGING DIRECTOR.3PRINCIPAL PROJECT CONSULTANT,
KERALA TRANSPORT DEVELOPMENT FINANCE CORPORATION LTD., A
GOVERNMENT OF KERALA UNDERTAKING, REGISTERED OFFICE AT
LEVEL 8 (6TH FLOOR), TRANS TOWERS, VAZHUTHACAUD,
THIRUVANANTHAPURAM-14.
BY ADV SHRI.T.P.SAJAN, SC, KTDFC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
10.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 16056 OF 2020
2
DINESH KUMAR SINGH, J.
-------------------------------------------- WP(C) NO. 16056 OF 2020
--------------------------------------------
Dated this the 10th day of November, 2023
J U D G M E N T
the petitioner, Smt. Reshmita Ramachandran, learned Government Pleader and Sri. T.P Sajan, learned Standing Counsel for respondent Nos. 2 and 3.
WP(C) NO. 16056 OF 2020
3
use toilet facilities on the ground floor of the KSRTC Bus Terminal Complex, Angamaly. The said licence was granted for a period of one year and the licence fee agreed to be paid by the petitioner was Rs.3,76,200/-. Under the agreement itself, it was provided that the petitioner would be liable to pay GST amount of 18% on the said amount of licence fee which is 9% CGST + 9% SGST.
WP(C) NO. 16056 OF 2020
4
WP(C) NO. 16056 OF 2020
5
conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal and toilets. The 18% GST, i.e., 9% CGST and 9% SGST is demanded on the licence amount under the agreement entered into between the petitioner and the Kerala Transport Development Finance Corporation Ltd. It is further submitted that the licence fee is not exempted from payment of the GST and the licence fee is on supply of service, and it is covered under the scope of supply under Section 7 (1A) of GST Act.
WP(C) NO. 16056 OF 2020
6
floor of the premises of KSRTC Bus Terminal Complex, Angamaly. The demand of tax is on consideration of licence fee of the said facilities taken by the petitioner for providing toilet facilities to the general public on the basis of the charges as fixed under the agreement.
Sd/DINESH KUMAR SINGH JUDGE
rpr
WP(C) NO. 16056 OF 2020
7
APPENDIX OF WP(C) 16056/2020
PETITIONER’S EXHIBITS
EXHIBIT P1TRUE COPY OF G.O.(P) NO.73/2017/TAXES OF THE
1ST RESPONDENT, PUBLISHED AS SRO NO.371/2017
DATED 30.6.2017 IN THE KERALA GAZETTE, EXTRA
ORDINARY.
EXHIBIT P2TRUE COPY OF THE LETTER NUMBER
KTDFC/BOTP/OMPUT/ANKY/2019 OF THE 3RD
RESPONDENT, DATED 18.1.2020.
EXHIBIT P3TRUE COPY OF THE COMMUNICATION ISSUED BY THE
STATE COMMERCIAL TAX COMMISSIONER TO ONE SURESH
KUMAR, DATED 17.2.2019.
RESPONDENT’S EXHIBITS
EXHIBIT R2 ATRUECOPY OF THE E-TENDER NOTIFICATION NO.
KTDFC/BOTP/ETENDER/310/OMPUT/ANKY/209 DATED
22.02.2019.
EXHIBIT R2 BTRUE COPY OF THE TENDER ACCEPTANCE LETTER NO
KTDFC/BOTP/E-TENDER/OMPUT/ANKY/310/2019 DATED
26.03.2019 ISSUED BY KTDFC TO THE PETITIONER.
EXHIBIT R2 CTRUE COPY OF THE AGEEMENT DATED 05.04.2019
EXECUTED BETWEEN KTDFC AND THE PETITIONER.
EXHIBIT R2 DTRUE COPY OF THE REPLY LETTER NO.
KTDFC/BOTP/KKD/276/17 DATED 24.06.2020 SENT BY
KTDFC TO THE ADVOCATE OF THE PETITIONER.
3 issues framed by the court
Whether the 18% GST demanded on the licence fee for toilet facility operation is exempt under public convenience service notifications.
Whether the tax demand pertains to the supply of service or supply of license fee for operation of facilities.
Whether the petitioner is liable to remit GST on the licence fee despite exemption notifications for public conveniences.
2 provisions across 2 enactments
Hamsa Koya K.T.
Government of Kerala
Kerala Transport Development Finance Corporation Ltd.
Principal Project Consultant, Kerala Transport Development Finance Corporation Ltd.
Dinesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court