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IN THE HIGH COURT OF KERALA AT ERNAKULAM
HARISANKAR V. MENON, J
KABANI HERITAGE HOTEL – Appellant
Versus
THE ASSISTANT COMMISSIONER, STATE GOODS & SERVICES TAX DEPARTMENT – Respondent
WP(C) NO. 21988 OF 2023
| Table of Content |
|---|
| 1. petitioner challenges tax-related assessment order. (Para 1) |
| 2. court discusses procedural delays impacting tax liability. (Para 2 , 3) |
| 3. court refers to prior judgment limiting interest demand. (Para 4) |
J U D G M E N T
The petitioner – a bar-attached hotel and an assessee under the provisions of the Kerala General Sales Tax (KGST) Act, 1963, has filed the captioned writ petition seeking to challenge Ext.P1 Assessment Order for the year 2020-21, Insofar as it sought to levy interest for the belated payment of tax and also demand cess from the petitioner.
2. I have heard Sri.S. Sajeevan, the learned counsel for the petitioner, as well as Sri.Arun Ajay Shankar, the learned Government Pleader for the respondents.
3. The demand of cess cannot be sustained, insofar as the cess has subsequently been recalled by virtue of the provisions of the Finance Act, 2018 . Similarly, the delay in payment of tax for the year 2020-22 was only because of the fact that during that year, bar-hotels were permitted to carry out counter sales for which the liability was only at the rate of 5 percentage as against the 10 percentage applicable to the bar-hotels. The rate of tax when counter sales were effected by the bar-hotel was fixed by the Government only subsequently, and it is on that basis that the tax was also satisfied. It is the contention of the petitioner that no interest can be demanded since the delay was on account of the aforementioned aspects.
4. The very same contention has been considered by this Court in W.P. (C) No.32408 of 2023, by a Judgment dated 30.11.2023, holding that the interest in the afore circumstances cannot be demanded for any period earlier to 30.04.2022. In the afore circumstances, the matter requires a revisit by the assessing authority, with a specific reference to the date on which the petitioner satisfied the tax. So as to facilitate the above, Ext.P1 Assessment Order issued by the 1st respondent is set aside. There will be a direction to the 1st respondent to consider the issue afresh with reference to the principles laid down by this Court in W.P. (C) No.32408 of 2023.
This writ petition is disposed of as above.
Sd/-
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