Dismissed

The Secretary -Treasurer, v. the Commissioner

Kerala HC19 Dec 2023WP(C)/3352/2023

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition challenging notices for tax demand and suo motu registration. The court directed the tax authorities to finalize adjudication of the pending show cause notice within two months and keep the registration notice in abeyance during pendency.

What did the court decide?

Petitioner directed to cooperate; registration notice kept in abeyance; adjudication of show cause notice to be concluded within two months or ex-parte proceedings allowed.

The Secretary -Treasurer, Vs the Commissioner — GST and Indirect Tax | Kerala HC (2023)

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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 DINESH KUMAR SINGH

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TUESDAY, THE 19^TH DAY OF DECEMBER 2023/28TH AGRAHAYANA, 1945 WP(C) NO. 3352 OF 2023

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PETITIONER:

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THE SECRETARY-TREASURER, KERALA CO-OPERATIVE DEPOSIT GUARANTEE FUND BOARD, TC 82/5422(1), AMBUJAVILASAM ROAD, PULIMOOD JUNCTION, THIRUVANANTHAPURAM - 695001, REPRESENTED BY THE SECRETARY TREASURER, MOHAN MON P JOSEPH, AGED 54 YEARS, S/O. P.V. JOSEPH BY ADVS. K.SASIKUMAR P.S.RAGHUKUMAR S.ARAVIND

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RESPONDENTS:

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1 THE COMMISSIONER, CENTRAL TAX, CENTRAL EXCISE & CUSTOMS, P.B. NO.13, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM, PIN – 695001

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2 THE ADDITIONAL COMMISSIONER, OFFICE OF THE COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, P.B. NO.13, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM- 695001

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3 THE SUPERINTENDENT (AE), OFFICE OF THE COMMISSIONER, CENTRAL TAX, CENTRAL EXCISE & CUSTOMS, P.B. NO.13, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM – 695001

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W.P.(C.) No. 3352/2023

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BY SRI. P.R.SREEJITH, STANDING COUNSEL

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C.) No. 3352/2023

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JUDGMENT

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The petitioner is a Board constituted by the Government of Kerala for the administration of the Kerala Co-operative Deposit Guarantee Scheme, 2012 by invoking powers conferred under Section 57B of the Kerala Co-operative Societies Act, 1969 through notification SRO No. 28/2018 with G.O.(P) No. 03/2012/Co-op, dated 11.01.2012. The learned counsel for the petitioner submits that the purpose of collection of contribution is to build a corpus fund to be deposited in the various branches of the Kerala State Cooperative Bank or in the Kerala Government Treasury. No portion of the Corpus fund is retained by the Board towards service charge. Even the interest accrued is also added to the corpus fund. It is further submitted that the guarantee to the depositors is not given by the Board but by the Government of Kerala and the Board only administers the fund under the Kerala Co-operative Deposit Guarantee Scheme, 2012.

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The petitioner challenges Ext.P11 show cause notice dated 18.11.2022 issued under the provisions of Section 73 of the Central Goods and Service Tax Act, 2017 (for short, the 'CGST

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W.P.(C.) No. 3352/2023

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Act'). The petitioner has been asked to show cause within a period of thirty days from the date of said show cause notice. In that show cause notice, the petitioner was asked to show cause why an amount of Rs.7,21,10,112/- towards CGST and SGST should not be demanded from the petitioner, for rendering services and why collection of Rs.40,06,11,732/- from the co-operative society as deposit guarantee fund during the period 2017-18 should not be considered as value of taxable supply.

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The petitioner has filed a reply to the said show cause notice in Ext.P14. While the final adjudication is pending, Ext.P12 notice has been issued proposing to initiate suo motu registration of the Board under the provisions of GST Act and the petitioner has been asked to furnish the documents and the details as mentioned in the said notice. Against the said proceeding, the petitioner has submitted Ext.P13 reply. The learned counsel for the petitioner submitted that when adjudication proceedings are pending in respect of show cause notice dated 18.11.2022 in Ext.P11, unless the show cause notice is finally adjudicated, the notice pursuing the petitioner for suo motu registration of the Board under the provisions of the

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W.P.(C.) No. 3352/2023

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CGST/GST Act does not appear to be proper. First, it has to be determined whether the petitioner is liable to pay the CGST/SGST for the services rendered by them to the co-operative societies. If it is held that the petitioner is liable to pay the CGST and SGST on collection under the Guarantee Scheme, then only the question of registration would arise.

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Considering these facts and the submissions made by the learned counsel for the petitioner, the present writ petition is disposed of with a direction to the second respondent to proceed with the adjudication of the show cause notice dated 18.11.2022, expeditiously and conclude the same, within a period of two months from today. The petitioner is directed to co-operate in the conclusion of the proceedings and in case, the petitioner does not co-operate, the respondents will proceed to finalise the proceedings ex-parte.

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Till a final decision is taken on the show cause notice after adjudication, the notice in Ext.P12 shall be kept in abeyance.

Sd/-

DINESH KUMAR SINGH

JUDGE

DCS/21.12.2023

W.P.(C.) No. 3352/2023

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APPENDIX

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PETITIONER EXHIBITS

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EXHIBIT P1	TRUE COPY OF LETTER C NO. IV/06/02/2018 PREV. ` DGTED 18-07-2018 ISSUED TO THE PETITIONER BY THE DEPUTY COMMISSIONER IN THE OFFICE OF THE 1ST RESPONDENT
EXHIBIT P2	TRUE COPY OF LETTER KCDGFB/1035RAO18 DATED 06-08-2018 FILED BY THE PETITIONER BEFORE THE DEPUTY COMMISSIONER IN THE OFFICE OF THE 1ST RESPONDENT
EXHIBIT P3	TRUE COPY OF THE LETTER C. NO. IV/06/02/2018 -PREV DATED 4-6-2020 ISSUECL BY THE 3RD RESPONDENT
EXHIBIT P4	TRUE COPY OF THE LETTER KCDGFB/GST/2020/ (1 ) DATED NIL ADDRESSED TO THE 1ST RESPONDENT SUBMITTED BY THE PETITIONER
EXHIBIT P5	TRUE COPY OF THE LETTER C. NO. IV/06/02/2018-PREV DATED 3-9-2020 TO THE PETITIONER ISSUED BY THE ASSISTANT COMMISSIONER IN THE OFFICE OF THE 1ST RESPONDENT
EXHIBIT P6	TRUE COPY OF THE LETTER KCDGFB/GST/2020/ (1) DATED 14-9-2020 SUBMITTED BY THE PETITIONER BEFORE THE ASSISTANT COMMISSIONER IN THE OFFICE OF THE 1ST RESPONDENT
EXHIBIT P7	TRUE COPY OF THE SUMMONS NO. 23/2020-21 DATED 19-03-2021 ISSUED BY THE 3RD RESPONDENT TO THE SECRETARY TO THE PETITIONER
EXHIBIT P8	TRUE COPY OF THE LETTER KCDGFB/G/30 DATED 25-03-2021 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT
EXHIBIT P9	TRUE COPY OF THE LETTER C NO. IV/06/02/2018 -PREV DATED 05-04-2021 ISSUED BY THE 3RD RESPONDENT

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W.P.(C.) No. 3352/2023

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EXHIBIT P10 TRUE COPY OF THE STATEMENT GIVEN BY THE SECRETARY TO THE PETITIONER BEFORE THE 3RD RESPONDENT ON 20-04-2021

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EXHIBIT P11 TRUE COPY OF THE SHOW CAUSE NOTICE NO. 01/2022-23 GST (ADC) DATED 18-11-2022 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXHIBIT P12 TRUE COPY OF LETTER C NO. IV/16/02/2018 DATED 01-12-2022 EXHIBIT P13 A TRUE COPY OF THE LETTER KCDGFB/GST/2022/1 DATED 08-12-2022 SUBMITTED BY THE PETITIONER EXHIBIT P14 TRUE COPY OF THE REPLY DATED 14-12-2022 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT. P11 NOTICE EXHIBIT P15 TRUE COPY OF LETTER C. NO: GEXCOM/ADJN/GST/ADC/46/2021-ADJN DATED 06-01-2023

The Secretary -Treasurer, v. the Commissioner

Case brief

What is this about?

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The Secretary -Treasurer, v. the Commissioner

Case brief

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