2019 (2) TMI 1524 - HC - GST

Vires of clauses (a), (b), (c), (d) and (e) of Sub Section 2 of Section 174 of the Kerala State Goods and Services Act, 2017 - jurisdiction or powers to levy, assess and collect tax under the Kerala Value Added tax Act, 2003 - repeal of statutes - transition provisions - Held that - The issue decided in the case of M/S. SHEEN GOLDEN JEWELS (INDIA) PVT. LTD. VERSUS THE STATE TAX OFFICER (IB) -1, AND OTHERS 2019 (2) TMI 300 - KERALA HIGH COURT , where the petitioner s plea is rejected that the State lacks the vires to graft Section 174 into KSGST Act, 2017 - petition dismissed.

Summary

Issues:
Challenge to the legality of certain provisions of the Kerala State Goods and Services Act, 2017 and the Kerala Value Added Tax Act, 2003. Jurisdiction of tax authorities under the repealed Kerala Value Added Tax Act, 2003. Validity of an amendment made by the Kerala Finance Act, 2018. Writs sought for quashing assessment orders and prohibiting tax collection proceedings.

Analysis:
The petitioner, a private limited company, challenged the legality of clauses of Section 174 of the Kerala State Goods and Services Act, 2017, under Article 246A of the Constitution of India and the Constitution (One Hundred and First Amendment) Act, 2016. The petitioner sought a declaration that these clauses were illegal and void. Additionally, the petitioner contested the validity of Section 174(3) of the same Act, arguing that it was ultra vires the Constitution and beyond the Act's scope. The court dismissed the petition in light of a previous judgment.

The petitioner further contested the jurisdiction of tax authorities under the Kerala Value Added Tax Act, 2003, post the introduction of the Kerala State Goods and Services Act, 2017. The petitioner sought a declaration that the tax authorities had no power to levy taxes under the repealed Act. However, the court dismissed the petition based on a previous judgment in a related case.

The petitioner challenged an amendment made by the Kerala Finance Act, 2018, which substituted a provision related to the deadline for compliance. The petitioner argued that this amendment was void, unconstitutional, and lacked legal authority. The court was asked to declare this amendment unenforceable. However, the court dismissed the petition citing a previous judgment.

The petitioner sought writs of Certiorari and Prohibition to quash assessment orders and prevent tax collection proceedings under the Kerala Value Added Tax Act, 2003. The court dismissed the petition in line with a previous judgment in a similar case. The petitioner's pleas for relief were not granted, and the court upheld the previous judgment in M/s. Sheen Golden Jewels (India) Pvt. Ltd. v The State Tax Officer, thereby dismissing the writ petition.