The Thadukkassery Service Co-Operative Bank Ltd. v. The State Tax Officer State Goods And Service Tax Department, Palakkad/ the Superintendent Goods And Service Tax Department / State of Kerala / Union of India / Goods And Service Tax Network
[Citation -2020-LL-0616-44]

Citation 2020-LL-0616-44
Appellant Name The Thadukkassery Service Co-Operative Bank Ltd.
Respondent Name The State Tax Officer State Goods And Service Tax Department, Palakkad/ the Superintendent Goods And Service Tax Department / State of Kerala / Union of India / Goods And Service Tax Network
Court HIGH COURT OF KERALA AT ERNAKULAM
Relevant Act CGST
Date of Order 16/06/2020
Judgment View Judgment
Keyword Tags cancellation of registration • certificate of registration • goods and services tax


IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, 16TH DAY OF JUNE 2020 / 26TH JYAISHTA, 1942 WP(C).No.11830 OF 2020(C) PETITIONER/S: THADUKKASSERY SERVICE CO OPERATIVE BANK LTD.NO.F 534, KERALASSERY P.O., KONGAD, PALAKKAD-678641, REPRESENTED BY ITS SECRETARY, VIJAYAKUMARI M.P., AGED 51, D/O.NARAYANAN NAIR. BY ADV. SRI.HARISANKAR V. MENON RESPONDENT/S: 1 STATE TAX OFFICER STATE GOODS AND SERVICE TAX DEPARTMENT, 1ST CIRCLE, PALAKKAD-678001. 2 SUPERINTENDENT, GOODS AND SERVICE TAX DEPARTMENT, PALAKKAD-678001. 3 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001. 4 UNION OF INDIA, REPRESENTED BY SECRETARY, MINISTRY OF CORPORATE AFFAIRS, NEW DELHI-110001. 5 GOODS AND SERVICES TAX NETWORK, EAST WING, 4TH FLOOR, WORLD MARK-1, AEROCITY, NEW DELHI-110037. OTHER PRESENT: SRI P VIJAYAKUMAR ASGI DR THUSHARA JAMES GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.06.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.11830 OF 2020(C) 2 JUDGMENT Dated this 16th day of June 2020 Petitioner, Society through instant writ petition has approached this Court with following prayers: (i) To quash Exts.P4 to P4(za) orders issued by 1st respondent by issue of writ of certiorari or such other writ or order or direction. (ii) To direct respondents to grant validity for Ext.P2 registration from 01.07.2017 by issue of writ of mandamus or such other writ or order or direction. 2. Prima facie, orders Exts.P4 to P4(za) are appealable under Section 107 of Goods and Services Tax Act, 2017. However, Mr. Harisankar V.Menon during course of argument pleaded that order is without jurisdiction and it is on that account extra ordinary writ jurisdiction of this Court has been invoked. 3. facts culminating into filing of writ petition are that petitioner society is assessee under Income Tax Act 1961. Inadvertently, petitioner was granted two permanent account Nos. (PAN) as AAEAT6828L and AACTT3061G. On realizing mistake, WP(C).No.11830 OF 2020(C) 3 Income Tax Department vide communication dated 13.7.2016, Ext.P1 informed petitioner that only PAN No.AAEAT6828L will be active and other PAN No. AACTT3061G would not be operational and accordingly PAN Number AACTT3061G was deactivated. Petitioner was also holding registration for carrying on business of dealer under erstwhile Kerala Value Added Act from office of first respondent and was being filed under said statute. However upon roll out of GST, petitioner migrated to new system. But owing to inadvertent omission, migration was carried out by giving deactivated PAN No. AACTT3061G. On basis of aforementioned particulars petitioner was granted registration under GST Act bearing No.32AACTT3061G2ZR. Realizing mistake with regard to registration with deactivated PAN number, petitioner applied for fresh registration and was granted registration with effect from 16 th February 2018 -32AAEAT6828L1Z5. After having obtained fresh WP(C).No.11830 OF 2020(C) 4 registration number, petitioner submitted application dated 29.9.2018 before first respondent for cancellation of previous registration No.32AACTT3061G2ZR. 4. Sri.Harisankar Menon, learned counsel appearing on behalf of petitioner submitted that from March of 2018 onwards petitioner had been filing proper returns under GST Act in pursuance of new certificate ie., Ext.P2 which was not disputed by authority. However first respondent passed separate orders dated 30.09.2019 for period from July 2017 to October 2019 under Section 62 of CGST Act demanding Rs.9,99,174/- towards tax and Rs.2,87,728/- towards interest Exts.P4 to P4(za). He submits that aforementioned orders have been issued only on account of fact that no returns were filed by petitioner under Act with reference to registration No.32AACTT3061G2ZR on basis of invalidated PAN Number. error was neither intentional or willful. In fact, with effect from March 2018, petitioner has been WP(C).No.11830 OF 2020(C) 5 filing returns under new registration so obtained. factum of inadvertent mistake was in knowledge of first respondent. 5. In support of aforementioned submissions reliance has been laid to judgments of this Court in W.P.(C) No.35333 of 2017 dated 6.4.2018 and W.P.(C) No.17323 of 2019 dated 29.11.2019, Exts.P5 and P5(a). It is submitted that human is bound to err. As such, it is obligatory for respondents concerned to make appropriate provisions to tackle issues of such nature instead of imposing penalty. It was case where petitioner was not able to comply with statutory requirements in respect of business for period from 1.7.2017 to 12.08.2017 owing to applicability of new GST regime. In other matter, it was also similar kind of difficulties faced by assessee. By concluding his argument, Sri. Harisankar Menon submits that instead of availing remedy of appeal, authorities ought to have given opportunity of hearing to petitioner to rule out WP(C).No.11830 OF 2020(C) 6 element of mens rea. 6. Per contra, Dr. Thushara James, learned Government Pleader relied upon objections taken in counter by alleging that once Income Tax Authority vide Ext.P1, ie., way back on 13.7.2016 informed petitioner with regard to use only PAN No. AAEAT6828L with further warning to desist from using other PAN. Despite that, assessee migrated to GST regime had been using t PAN No. AACTT3061G even in 2017. scheme of migration as contemplated from erstwhile taxation laws to GST regime was such that every person who had been granted provisional registration should submit application electronically in Form GST REG-26, duly verified along with necessary information and documents to obtain Permanent Registration Number. assessee obtained GST registration using active PAN No.AAEAT6828L only on 16.2.2018. contention of petitioner that he had applied for fresh registration on 'realizing mistake immediately' is not WP(C).No.11830 OF 2020(C) 7 acceptable since on verification of 2A details auto generated against GSTIN 32AACTT3061G2ZR, it is evident that GSTIN was used to effect inward supplies during period. On verification of some of sample physical invoice copies in respect of inward supplied effected by assessee it was ascertained that GSTIN quoted therein was also GSTIN 32AACTT3061G2ZR. As per provisions of Section 29(2)(c) of GST Act 2017, assessee was served GST REG-17 (Show Cause Notice for Cancellation of Registration) vide communication dated 29.9.2018 for failure to file returns for continuous period of six months and opportunity of being heard was given on 8.10.2018. But no valid explanations nor supporting documents were provided by assessee. cancellation of registration of assessee was with effect from 30.11.2019 and not from 29.9.2018. Assessee had option to file valid return within 30 days on service of assessment order. Thus for all intends and purposes alleged quandary expressed in writ petition cannot WP(C).No.11830 OF 2020(C) 8 be brought within ambit of bonafide mistake and thus urges this Court for dismissal of writ petition. 7. I have heard learned counsel for parties, appraised paper book and of view that there is no force and merit in aforementioned contentions. In view of reply as submitted through contention of learned Government Pleader, it is evident that alleged error attributed to human but not omission or bonafide. There was clear cut information from Income Tax Department to use one PAN No.AAEAT6828L. Despite that petitioner had been filing particulars of invalidated PAN Number on basis of Registration Number obtained. cancellation was with effect from 30th November 2019 and not from 29.9.2018. For all these period, there were no returns, which necessitated assessing officer to assume role of best assessment under Section 62 of Act. judgments cited at bar Exts.P5 and P5(a), and finding therein are not in dispute ,as it pertained WP(C).No.11830 OF 2020(C) 9 difficulties faced by assesses in filing returns on roll out of new GST Scheme. Instant case is not of such nature where petitioner, for sake of repetition, was in 2016 informed with regard to use PAN No. AAEAT6828L. Thus for all intends and purposes, there cannot be any bonafide omission or mistake. I would not be commenting further as it may not prejudice right of petitioner, in case he chooses to prefer appeal under GST Act. For reason aforementioned, writ petition is devoid of merits. Accordingly, writ petition is dismissed. Sd/- sab AMIT RAWAL, JUDGE WP(C).No.11830 OF 2020(C) 10 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF COMMUNICATION ISSUED BY INCOME TAX DEPARTMENT, PALAKKAD DATED 13.07.2016. EXHIBIT P2 COPY OF CERTIFICATE OF REGISTRATION ISSUED BY 2ND RESPONDENT DATED 16.02.2018. EXHIBIT P3 COPY OF ORDER ISSUED BY 1ST RESPONDENT DATED 29.09.2018. EXHIBIT P4 COPY OF ORDER FOR PERIOD JULY 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(A) COPY OF ORDER FOR PERIOD AUGUST 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(B) COPY OF ORDER FOR PERIOD SEPTEMBER 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(C) COPY OF ORDER FOR PERIOD OCTOBER 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(D) COPY OF ORDER FOR PERIOD NOVEMBER 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(E) COPY OF ORDER FOR PERIOD DECEMBER 2017 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(F) COPY OF ORDER FOR PERIOD JANUARY 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. WP(C).No.11830 OF 2020(C) 11 EXHIBIT P4(G) COPY OF ORDER FOR PERIOD FEBRUARY 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(H) COPY OF ORDER FOR PERIOD MARCH 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(I) COPY OF ORDER FOR PERIOD APRIL 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(J) COPY OF ORDER FOR PERIOD MAY 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(K) COPY OF ORDER FOR PERIOD JUNE 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(L) COPY OF ORDER FOR PERIOD JULY 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(M) COPY OF ORDER FOR PERIOD AUGUST 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(N) COPY OF ORDER FOR PERIOD SEPTEMBER 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(O) COPY OF ORDER FOR PERIOD OCTOBER 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(P) COPY OF ORDER FOR PERIOD NOVEMBER 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(Q) COPY OF ORDER FOR PERIOD DECEMBER 2018 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(R) COPY OF ORDER FOR PERIOD JANUARY 2019 ISSUED BY 1ST RESPONDENT DATED WP(C).No.11830 OF 2020(C) 12 30.09.2019. EXHIBIT P4(S) COPY OF ORDER FOR PERIOD FEBRUARY 2019 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(T) COPY OF ORDER FOR PERIOD MARCH 2019 ISSUED BY 1ST RESPONDENT DATED 30.09.2019. EXHIBIT P4(U) COPY OF ORDER FOR PERIOD APRIL 2019 ISSUED BY 1ST RESPONDENT DATED 05.02.2019. EXHIBIT P4(V) COPY OF ORDER FOR PERIOD MAY 2019 ISSUED BY 1ST RESPONDENT DATED 13.12.2019. EXHIBIT P4(W) COPY OF ORDER FOR PERIOD JUNE 2019 ISSUED BY 1ST RESPONDENT DATED 13.12.2019. EXHIBIT P4(X) COPY OF ORDER FOR PERIOD JULY 2019 ISSUED BY 1ST RESPONDENT DATED 09.01.2020. EXHIBIT P4(Y) COPY OF ORDER FOR PERIOD AUGUST 2019 ISSUED BY 1ST RESPONDENT DATED 09.01.2020. EXHIBIT P4(Z) COPY OF ORDER FOR PERIOD SEPTEMBER 2019 ISSUED BY 1ST RESPONDENT DATED 09.01.2020. EXHIBIT P4(ZA) COPY OF ORDER FOR PERIOD OCTOBER 2019 ISSUED BY 1ST RESPONDENT DATED 09.01.2020. EXHIBIT P5 COPY OF JUDGMENT IN W.P. (C)NO.35333/2017 OF THIS HON'BLE COURT DATED 06.04.2018. EXHIBIT P5(A) COPY OF JUDGMENT IN W.P(C)NO.17323/2019 OF THIS HON'BLE COURT DATED 29.11.2019. Thadukkassery Service Co-Operative Bank Ltd. v. State Tax Officer State Goods And Service Tax Department, Palakkad/ Superintendent Goods And Service Tax Department / State of Kerala / Union of India / Goods And Service Tax Network
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