2025 (5) TMI 391 - HC - GST

Constitutionality of Section 174(2) of the Kerala State GST Act - HELD THAT - The Division Bench in Sheen Golden Jewels (India) Pvt. Ltd. v. The State Tax Officer (IB) and Another 2022 (12) TMI 1137 - KERALA HIGH COURT while dismissing the batch of Writ Appeals held that The Constitutionality of Section 174(2) of the KSGST Act and legality of notices/ orders as the case may be impugned in the respective Writ Appeals are answered against the dealers hence necessarily the Writ Appeals must fail and accordingly are dismissed. The same direction as issued by the Division Bench in Sheen Golden Jewels (India) Pvt. Ltd. will apply mutatis mutandis to this appeal as well. This Writ Appeal is therefore dismissed by leaving open the liberty granted by the Division Bench above to the appellants herein as well.

Summary

The Kerala High Court, in this Writ Appeal challenging the constitutionality of Section 174(2) of the Kerala State GST Act, upheld the earlier Single Judge's reliance on precedent from WP(C) No.11335 of 2018. The Division Bench's judgment in Sheen Golden Jewels (India) Pvt. Ltd. v. The State Tax Officer (IB) and Another (WA No.747/2019) was pivotal, wherein the Court held: "The Constitutionality of Section 174(2) of the KSGST Act... are answered against the dealers, hence necessarily, the Writ Appeals must fail and accordingly are dismissed." However, the Court granted dealers "liberty... to avail the remedy of reply/appeal/revision... within eight weeks" and directed authorities to "entertain the statutory remedy... without referring to the delay occasioned during the pendency of the Writ Petitions and Writ Appeals," considering objections "on merits." Applying this ratio, the present appeal was dismissed with the same liberty extended to the appellants, preserving their statutory remedies despite dismissal on constitutional grounds.