Joy Mathew Vs Union of India (Kerala High Court)

This case involves Joy Mathew, a film distributor, challenging GST assessment orders and recovery notices issued by the authorities. The petitioner argued that while they believed they weren't liable to pay tax for certain periods and thus shouldn't file nil returns, the GST Act mandates return filing. A key issue arose from the petitioner incorrectly paying CGST and SGST instead of IGST, leading to a shortfall in IGST and an excess in CGST/SGST, which subsequently resulted in notices for non-filing of returns.

IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
MONDAY, THE 06TH DAY OF JULY 2020 / 15TH ASHADHA, 1942
WP(C).No.13493 OF 2020(J)

PETITIONER/S:

JOY MATHEW
PROPRIETOR, ABRA FILM INTERNATIONAL, 33/4686, TOMS
COTTAGE, MALAPARAMBA, KOZHIKODE-673009.
BY ADV. SRI.K.I.MAYANKUTTY MATHER

RESPONDENT/S:

1 UNION OF INDIA, THROUGH ITS SECRETARY (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI G.O.P.-110001.

2 STATE OF KERALA, REPRESENTED BY ITS CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM G.P.O., THIRUVANANTHAPURAM-695001. 3 GST COUNCIL, THROUGH ITS CHAIRPERSON, DEPARTMENT OF FINANCE, NORTH BLOCK, NEW DELHI P.O., NEW DELHI-110001.

4 STATE TAX OFFICER, OFFICE OF THE STATE TAX OFFICER, 2ND CIRCLE, SALES TAX COMPLEX BUILDING, 2ND FLOOR, JAWAHAR NAGAR COLONY, ERANHIPALAM P.O., KOZHIKODE-673006.

5 GOODS AND SERVICES TAX NETWORK,THROUGH ITS CHAIRMAN, EAST WING, 401 FLOOR, WORLD MARK-AERO CITY, GURGAON ROAD P.O., NEW DELHI-110037.

6 DEPUTY COMMISSIONER OF STATE TAX,SALES TAX COMPLEX BUILDING, 3RD FLOOR, JAWAHAR NAGAR COLONY, ERANHIPALAM P.O., KOZHIKODE-673006.

OTHER PRESENT:

SRI P VIJAYAKUMAR ASGI , GP DR THUSHARA JAMES

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT

Dated this the 6th day of July 2020 

Through the instant petition challenge has been laid to Exts.P4, P4 (a), P4(b) & P4 (c) Assessment orders and recovery notices Exts.P8, P8(b) & P8(c) with other consequential prayers. In support of the aforementioned prayer, the writ petition is based on the facts that owing to the advent of the new GST regime in case petitioner who is registered with GST is of the view that, is not liable to pay tax for these period need not file GST returns showing nil, but the provisions of the Act envisages requirement of filing returns. The aforementioned difficulty has been agitated in the present writ petition.

2. Petitioner, a registered dealer on the roles of the 4th respondent was granted registration under the GST Act. It is engaged in the production and distribution of films and had been regularly filing returns without fail. For the period from July 2018, petitioner submitted the payment of GST under CGST and SGST instead of IGST. The State after filing of the returns on input tax credit adjustment of Rs. 24.70 lakhs there was a short WP(C).No.13493 OF 2020(J)
fall of IGST and excess payment towards CGST and SGST was of sum of Rs.12.93 lakhs. On account of the fault committed by the petitioner to file returns in the month of July 2018 to March 2019, petitioner received notices dated 31 May 2019 in the form of GSTR-3A purportedly under Section 46 of KGST Act and CST Act. They were received on 1st July 2018 as evidenced vide P1 to P1 a (s) to c (2). The notices pertained to period August 2018, October 2018 and December 2018. 3. In response to the aforementioned, reply dated 25.9.2019 in accordance with the provisions of statute, was filed as evidenced from Ext.P3.

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