The Kerala High Court in a recent decision held that the High Court is not appellate authority under the Kerala Goods and Service Tax Act, 2017 ( KGST Act ) to examine merit of assessment/refund order.
The petitioner is a registered dealer under the provisions of the Kerala Value Added Tax Act, 2003, and is engaged in execution of contract awarded by the Bharat Petroleum Company Ltd. The assessment for the years from 2008 – 2009 to 2011-2012 were completed and the amount found to be paid in excess for the years 2008-2009 to 2010-2011 were carry forwarded to the year 2011-2012.
On consideration of the affidavit filed on behalf of the alleged contemnor, the contempt and writ petitions were closed by the judgment dated 18.07.2018 with the observation “If at all the petitioner has any further grievance regarding the computation of interest or the manner in which the adjustments have been made, it would always be open for the petitioner to challenge the same in appropriate proceedings”.
As the petitioner did not produce the documents and not filed reply to the notice, an exparte order of the assessment for the year 2012-2013 was passed, in which it was held that an amount of Rs.19,47,790/- was found due after adjusting the refund amount of Rs.23,52,998/- for the year 2011-2012. Since the amount to be refunded for the year 2011-2012 with interest was given credit for the year 2012-2013, the direction of the High Court in its judgment dated 31.03.2015 was complied with in respect of the assessment year 2011-2012.
In the meantime, Deputy Commissioner Thiruvananthapuram suo-motu proposed the cancellation of the assessment order for the year 2011- 12 on finding certain irregularities in the assessment order. Thereafter, the assessment order was completed and the rectified assessment order was passed on 25.11.2016 creating a demand of Rs.65,79,113/- and cess of Rs.65,611/-.
A Single Bench of Justice Dinesh Kumar Singh observed that “If the petitioner is aggrieved by the said order, the remedy lies elsewhere under the Statute itself. This Court cannot enter into the factual dispute as it is for the petitioner to approach the Appellate Authority against the said order if he is not satisfied with the order passed for refund in the impugned order. This court is not an appellate authority under the provisions of the KGST Act to examine the merit of the assessment/refund order.”
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