GST Appellate Authority Must Pass Order On Merits Even If There's No Appearance; Can't Dismiss For Default: Kerala High Court

The Kerala High Court has held that an appellate authority under the Central Goods and Services Tax Act (CGST Act 2017) must consider the merits of an appeal even if there is no appearance on behalf of the appellant.The Court stated that the order must be passed on merits and that the dismissal cannot be merely for default. Justice Bechu Kurian Thomas was considering a writ petition filed by an assessee challenging an order passed by the Joint Commissioner (Appeals) dismissing an appeal...

College Supplying Food Through Canteen Managed By Educational Trust Is Liable For Registration Under KVAT Act: Kerala High Court

The Kerala High Court held that college supplying food through canteen, though managed by educational trust, is liable for registration under KVAT Act. The bench disagreed with the assessee that even if it is assumed that the sales in the canteen are found to be assessable under the provisions of the VAT, it falls within the threshold limit and therefore, the assessee cannot be compelled to take registration. It may be true that the sales across the counter in the canteen may be...

Kerala High Court Strikes Down GST Act Provision Which Levied Tax On Supplies By Clubs/Associations To Members

In a significant judgment, the Kerala High Court has struck down the provisions of the Central Goods and Services Tax Act, 2017, which allowed the levy of GST on supply by clubs and associations to its members.As per the 2021 amendment made to the CGST Act, the definition of "supply" was amended to include within its fold "activities or transactions, by a person, other than an individual, to its members or constituents or vice versa, for cash, deferred payment or other valuable consideration."...

Once Tax Has Been Assessed, Entire Amount Has To Be Paid, Unless There Are Amnesty Schemes: Kerala High Court

The Kerala High Court stated that once tax has been assessed, entire amount has to be paid, unless there are amnesty schemes. “The assessee had even acquiesced into the order by paying the first instalment and thereafter he has turned around and now requests for acceptance of a portion of the amount in satisfaction of the entire tax assessed. Such a procedure is unheard in law. Once tax has been assessed, the entire amount has to be paid, unless there are amnesty schemes,” stated the...

After Commencement Of Arbitration, Parties Must Wait Until Award Is Pronounced To File Challenge Unless Appeal Is Available At Earlier Stage: Kerala HC

The Kerela High Court Bench of Justice Basant Balaji has held that once the arbitration has commenced, parties have to wait until the award is pronounced unless a right of appeal is available to them under Section 37 of the Act, even at an earlier stage. Brief Facts of the case: The present dispute arose with respect to an agreement, for the construction of a Multidisciplinary Research Laboratory and Animal House at Medical College, Thiruvananthapuram. The contract stipulated an...

BNSS & BSA Grant Discretion To Summon, Examine Witnesses Allowing Trial Courts To Determine How To Proceed In PMLA Cases: Kerala High Court

The Kerala High Court has held that Bharatiya Nagarik Suraksha Sanhita (BNSS) and Bharatiya Sakshiya Adhiniyam (BSA) grant discretion in the manner for summoning and examining witnesses, allowing the Trial Court to determine whether to proceed with the PMLA trial or to keep it in abeyance until the predicate offence trial is concluded.A division bench of Justice A.Muhamed Mustaque and Justice P. Krishna Kumar observed that delaying the PMLA trial until the conclusion of the trial in the...

PMLA | For Acts Done Prior To Enactment Penalty Follows Only If Proceeds Of Crime Are Utilized, Article 20(1) Is Not Violated: Kerala HC

The Kerala High Court has held that Prevention of Money-Laundering Act, 2002 does not penalize a person for his past actions, but penal consequences only follow when the accused utilizes the proceeds of the crime from past actions for money laundering after the enactment of PMLA and the amendment to its schedule in 2009. The Court thus held that Section 3 of the PMLA criminalizes the act of money laundering and does not violate Article 20(1) of the Constitution.The appellant/petitioners had...

Income Tax Act | Order Passed By Commissioner U/S 263 Can't Be Construed As Closed Remand, No Need To Challenge Order Separately: Kerala High Court

The Kerala High Court stated that the order passed by the Commissioner of Appeals under Section 263 of the Income Tax Act cannot be under any circumstances construed as a closed remand and there is no requirement to challenge the order under Section 263 separately. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “In as much as the Commissioner of Income Tax (Appeals) had decided the appeal preferred by the assessee against the revised assessment...

Customs Department Can't Invoke Expired Bank Guarantees: Kerala High Court

The Kerala High Court stated that invocation of the expired bank guarantees by Customs Department is not permissible under law. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. was addressing the issue of whether customs department can invoke expired bank guarantees. The assessee/appellant has filed an appeal challenging the order of Single Judge who found that the challenge to the invocation of the Bank Guarantees cannot be made, except on fraud or...

Revenue Cannot Re-Assess Time Barred Assessment Under KVAT Act Based On CAG Report: Kerala High Court

The Kerala High Court stated that revenue cannot re-assess time barred assessment under KVAT Act based on CAG report. The Division Bench of Justices A.Y. Jayasankaran Nambiar and Easwaran S. observed that “there cannot be an exercise of power under Section 25A of the KVAT Act beyond the period of limitation prescribed under Section 25(1) of the KVAT Act. In fact the provisions of Section 25A allude to this aspect when it refers to the satisfaction to be recorded by the Assessing...

Joint Commissioner Has Jurisdiction To Initiate Proceedings Against Assessment Order Passed Pursuant To Remand: Kerala High Court

The Kerala High Court stated that Joint Commissioner has jurisdiction to initiate proceedings under Section 56 of the KVAT Act against assessment order passed pursuant to remand. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “when the fresh assessment order was passed consequence to the remand, the original assessment order ceased to exist in law and thereafter the only assessment order that survived for the purposes of exercise of the power of...

Ayurvedic Treatment Is Only Incidental To Facilities Provided By Assessee In Resort, Liable To Be Taxed: Kerala High Court

The Kerala High Court stated that ayurvedic treatment is only incidental to facilities provided by assessee in a resort, hence liable to be taxed. “the main activities of the assessee as per the brochures produced before the assessing officer, are canoeing, motor boat cruises, houseboat stay, trekking, Alleppey beach visit, coir factory visit, elephant ride, Kathakali, temple dance, dramas, Mohiniyattam and Kalaripayattu. Therefore, the main activities of the assessee are not running...