Kerala High Court
Tomy Thomas K vs Peringome Vayakkara Grama Panchayath on 25 October, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:79662
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
FRIDAY, THE 25TH DAY OF OCTOBER 2024 / 3RD KARTHIKA, 1946
WP(C) NO. 36655 OF 2024
PETITIONER/S:
TOMY THOMAS K.,AGED 53 YEARS
S/O. THOMAS, KATTAKKAYAM HOUSE, ARAVANCHAL P.O,
PAYYANUR TALUK, KANNUR DISTRICT, PIN - 670307
BY ADV M.PROMODH KUMAR
RESPONDENT/S:
1 PERINGOME VAYAKKARA GRAMA PANCHAYATH,
REP. BY ITS SECRETARY, PERINGOME P.O,
PAYYANUR TALUK, KANNUR, PIN - 670307
2 THE SECRETARY,PERINGOME VAYAKKARA GRAMA PANCHAYATH,
PERINGOME P.O., KANNUR DISTRICT, PIN - 670307
3 THE SECRETARY TO GOVERNMENT,
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE,
GOVERNMENT OF INDIA, NEWDELHI, PIN - 111011
4 JOINT COMMISSIONER OF STATE TAXES,
KANNUR CIVIL STATION, KANNUR, PIN - 670002
DR. THUSHARA JAMES, SR. GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
25.10.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C) NO. 36655 OF 2024 2
JUDGMENT
The petitioner has approached this Court, being
aggrieved by the fact that in respect of certain goods supplied by
the petitioner for implementing a project relating to the Mahatma
Gandhi National Rural Employment Guarantee Scheme
(hereinafter referred to as 'the MGNREG Scheme), the 1 st
respondent Panchayat is insisting on proof of payment of GST to
release payments due to the petitioner.
2. Learned counsel appearing for the petitioner would
submit that a similar issue had been considered by this Court in
Ext.P6 judgment in W.P.(C.) No.18007 of 2022 and connected
cases where this Court had held as follows:-
''2. The learned Government Pleader submits
that the supply of materials by the petitioner to the
Mahatma Gandhi National Rural Employment Guarantee
Scheme is not to be treated as a supply of goods or supply
of services in terms of the provisions contained in Section
7(2)(b) of the Central Goods and Services Tax/State Goods
and Services Tax Act, 2017 (CGST/SGST Act)
Taking into consideration the above submission
and having regard to the provisions contained in Section
7(2)(b) of the CGST/SGST Act, these writ petitions are
closed, making it clear that any supply of goods by the
petitioner for implementing any project related to the
Mahatma Gandhi National Rural Employment Guarantee
Scheme shall not be subject to any levy under the
CGST/SGST Act and making it clear that the Panchayat
has no authority to insist on payment/deposit of GST for
releasing payments due on account of the goods supplied
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in connection with the MGNREGS.''
3. Despite service of notice, there is no appearance for
respondent Nos.1 and 2.
4. Learned Government Pleader submits that instructions
have not so far been received in the matter.
5. However, taking into consideration the assertion of the
learned counsel appearing for the petitioner that the issues stand
covered by Ext.P6 judgment, this writ petition will also stand
disposed of, making it clear that any supply of goods by the
petitioner for the MGNREG Scheme shall not be subject to any
levy of GST under the CGST/SGST Acts. I also make it clear that
the Panchayat has no authority to insist for payment of proof of
GST for releasing payments due on account of goods supplied in
connection with MGNREG Scheme.
Sd/-
GOPINATH P.
JUDGE
ajt
2024:KER:79662
APPENDIX OF WP(C) 36655/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF LIST PUBLISHED BY THE FIRST
RESPONDENT PANCHAYAT
Exhibit P2 TRUE COPY OF STANDARD FORM OF CONDITIONS OF
CONTRACT DETAILING THE TERMS OF SUPPLY OF
MATERIALS UNDER MGNREG SCHEME
Exhibit P3 A TRUE COPY OF THE NOTIFICATION NO.14/2017-
UNION TERRITORY TAX RATE ISSUED BY THE
MINISTRY OF FINANCE (DEPARTMENT OF REVENUE,
GOVT. OF INDIA)
Exhibit P4 A TRUE COPY OF THE CIRCULAR ISSUED BY THE
FINANCE DEPARTMENT, GOVERNMENT OF KERALA,
THIRUVANANTHAPURAM TO THE LOCAL SELF
GOVERNMENT, THIRUVANANTHAPURAM DATED
02.03.2019
Exhibit P5 A TRUE COPY OF THE CIRCULAR ISSUED BY THE
MINISTRY OF RURAL DEVELOPMENT AND THE
DEPARTMENT OF RURAL DEVELOPMENT MENREGA
DIVISION OF GOVT. OF INDIA
Exhibit P6 TRUE COPY OF JUDGEMENT IN WPC 23606/2022
DATED 16.08.2024
Exhibit P7 TRUE COPY INTERIM ORDER DATED 17/08/2023 IN
Exhibit P8 INTERIM ORDER ISSUED IN WPC 12251/2024 DATED
01.04.2024
