DR.GEORGE JACOB, vs. ASSISTANT COMMISSIONER OF STATE TAX,

WP(C)/21772/2021HC KeralaKLHC01055789202125 October 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS5 pages

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What did the High Court hold?

The High Court of Kerala, while acknowledging the previous remand order by the appellate authority and the 45-day period stipulated for reconsideration, recognized the prevailing circumstances and the petitioner's inability to obtain necessary records due to COVID-19 restrictions and administrative delays. The Court noted that the petitioner had received a notice for a final hearing and expressed a belief in obtaining the records within 30 days. Consequently, the Court granted the petitioner a further period of 30 days from the date of the order to produce the necessary records to substantiate their claim of interstate sales. To facilitate this, the Court directed the first respondent (Assistant Commissioner of State Tax) to defer the consideration of the modification of the assessment order for an additional 30 days. The Court explicitly stated that no further time would be granted under any circumstances. The core principle applied is the grant of reasonable time to an assessee to prove their case, especially when external factors and administrative delays impede compliance.

What were the facts?

The petitioner, Dr. George Jacob, proprietor of M/s. Wayanad Resin, is challenging an order of assessment for the year 2016-17. The appellate authority had previously remanded the case to the assessing officer for reconsideration of the authenticity of 'C Forms' submitted by the petitioner. The assessing officer had initially found these 'C Forms' defective due to a mismatch with TINXYS records. The appellate authority directed the assessee to be given an opportunity to prove the genuineness of the 'C Forms' and ordered the assessing authority to complete the reconsideration within 45 days. The petitioner states that this time limit expired due to COVID-19 restrictions and delays in obtaining records from officers in Pollachi and Telangana.

What were the issues?

1. Whether the petitioner should be granted an extension of time to produce records to prove the genuineness of 'C Forms' for the assessment year 2016-17, given the previous remand order and subsequent delays. Assessee's Contentions: The petitioner argues that the time period stipulated by the appellate authority for proving the genuineness of 'C Forms' has expired. Due to COVID-19 restrictions and delays in obtaining necessary records from officers in Pollachi and Telangana, the petitioner could not comply within the original timeframe. The petitioner has since received a notice for a final hearing and believes they can obtain the records within a further 30 days. Revenue's Contentions: The judgment records that the learned Senior Government Pleader argued the case, but their specific contentions are not detailed.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 25TH DAY OF OCTOBER 2021 / 3RD KARTHIKA, 1943 PETITIONER: DR.GEORGE JACOB, AGED 60 YEARS, PROPRIETOR, M/S. WAYANAD RESIN, PUNNAPPALA POST, ERIYAD, WANDOOR, MALAPPURAM-679328. BY ADVS.SRI.R.JAIKRISHNA SRI.C.S.ARUN SHANKAR SMT.NARAYANI HARIKRISHNAN RESPONDENTS:

ASSISTANT COMMISSIONER OF STATE TAX, STATE GOODS AND SERVICE TAX DEPARTMENT, MINI CIVIL STATION P.O., PERINTHALMANNA, MALAPPURAM-679322.

DEPUTY COMMISSIONER (APPEALS), OFFICE OF DEPUTY COMMISSIONER (APPEALS), STATE GOODS AND SERVICE TAX DEPARTMENT, ERANJIPALAM P.O., KOZHIKODE-673006. BY SR. GOVERNMENT PLEADER DR.THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C) No.21772 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 25th day of October, 2021

JUDGMENT The appellate authority under the Central Sales Tax Act interfered with an order of assessment for the year 2016-17 issued against the petitioner and remanded the same for reconsidering the authenticity of ‘C Forms’ relied on by the petitioner. The assessing officer had found the 'C Forms' defective as it was not matching with the records in TINXYS. The appellate authority held that the assessee be granted an opportunity to prove the genuineness of 'C Forms' and the assessing authority was directed to reconsider the remanded case within 45 days. 2. Petitioner contends that the time period stipulated by the appellate authority expired and due to Covid - 19 restrictions, petitioner could not obtain the necessary records to prove the genuineness of 'C Forms' since the officer at Pollachi and at Telangana were delaying the issue of necessary records. 3. Adv.R.Jayakrishna, the learned counsel for the

petitioner submitted that after filing of the writ petition, assessing officer has issued a notice dated 06.10.2021, directing the petitioner to appear on 20.10.2021 for final hearing of the remanded case and that on the said day, an adjournment has been granted. The learned counsel expressed his earnest belief that petitioner would be able to obtain the records to prove the genuineness of ‘C Forms’ within a further period of 30 days from today. 4. I have heard the arguments of the learned counsel for the petitioner as well as the learned Senior Government Pleader Dr.Thushara James. 5. The limited prayer of the petitioner is to grant a breathing time to produce records to prove the veracity of the claim of interstate sales. Since the appellate authority had remanded the case and found it fit to grant 45 days time to the assessing authority to verify the genuineness of the ‘C Forms’ that mere alleged to be defective, I deem it fit, in the circumstances now prevailing, to grant a further time of 30 days from today, to the petitioner, to produce the necessary records to prove the claim put forth by them. To enable such grant of 30 days, I direct the first respondent to defer the consideration of modification of Ext.P1 assessment order, as directed in Ext.P2 by a further period of 30 days from today. It is

clarified that no further time need be granted to the petitioner, under any circumstances whatsoever. The writ petition is disposed of as above. Sd/-

BECHU KURIAN THOMAS, JUDGE RKM

APPENDIX PETITIONER'S EXHIBITS : EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT AY-2016-2017 (CST) DATED 05/10/2020. EXHIBIT P2 TRUE COPY OF THE APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT AY-2016-2017 (CST) DATED 26/02/2021. EXHIBIT P3

30/08/2016. EXHIBIT P3(A)

18/11/2016. EXHIBIT P3(B)

26/12/2016. EXHIBIT P3(C)

10/01/2017. EXHIBIT P3(D)

05/03/2017. EXHIBIT P3(E)

16/04/2017. EXHIBIT P3(F) TRUE COPY OF THE C FORMS ISSUED BY SRI. VENKATESHWARA COIR PRODUCTS PVT. LIMITED, DATED 23/06/2017. RESPONDENTS' EXHIBITS: NIL

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