2019 (5) TMI 1648 - HC - GST

Imposition of penalty u/s 67 of Kerala VAT Act - time limit stipulated under Section 67 of the KVAT Act - constitutional validity of Section 174 of the KSGST Act - HELD THAT - A re-consideration of the writ petition on the ground raised as mentioned above will be appropriate to achieve the ends of justice. Hence we are inclined to remit the matter to the Single Judge for reconsideration. The Registry shall post the writ petition before the learned Single Judge dealing with the subject matter as per the roster for consideration of the grounds raised in the writ petition other than the issue relating to the validity of Section 174 of the KSGST Act.

Summary

Issues:
Challenge to dismissal of W.P.(C) 24608/2018, validity of Section 174 of the Kerala State Goods and Service Tax Act, imposition of penalty under Section 67 of the Kerala Value Added Tax Act, time limit stipulated under Section 67 of the KVAT Act.

Analysis:
The judgment by the Kerala High Court, delivered by Justice Abdul Rehim, addresses the challenge to the dismissal of W.P.(C) 24608/2018, where the petitioner contested the imposition of penalty under Section 67 of the Kerala Value Added Tax Act. The main contention raised was that the proceedings were initiated beyond the time limit specified under Section 67 of the KVAT Act. Additionally, the constitutional validity of Section 174 of the Kerala State Goods and Service Tax Act was also questioned in the writ petition.

The writ petition, along with other cases, was dismissed by the learned Single Judge citing a previous judgment in W.P.(C) 11335/2018 and connected cases from January 11, 2019. The appellant's counsel argued that the issue of limitation was not adequately considered by the Single Judge, a point which the Government Pleader representing the respondents conceded. It was further acknowledged that the judgment in W.P.(C) 11335/2018 and related cases was under appeal before the court.

In light of the circumstances, the Court deemed it appropriate to remit the matter back to the Single Judge for reconsideration, emphasizing the importance of addressing the grounds raised in the writ petition, excluding the issue concerning the validity of Section 174 of the KSGST Act. The decision to uphold the interim order that was in effect at the time of the writ petition's dismissal was also highlighted, ensuring its continuation until further proceedings.

Therefore, the High Court set aside the impugned judgment in W.P.(C) 24608/2018 and directed the Registry to place the writ petition before the Single Judge for a thorough reconsideration, with specific attention to the grounds raised, except for the Section 174 validity issue, which is contingent upon the pending writ appeals before the court.