Kerala High Court
M/S. Kalady Kanjoor Rural Co-Operative ... vs The Intelligence Officer on 3 September, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:66518
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 3RD DAY OF SEPTEMBER 2024 / 12TH BHADRA, 1946
WP(C) NO. 30648 OF 2024
PETITIONER:
M/S. KALADY KANJOOR RURAL CO-OPERATIVE BANK LTD.,
11/1197, A, B, KANJOOR ROAD, KALADY,
ERNAKULAM - 683 575,REPRESENTED BY ITS SECRETARY,
V. SINDHU, PIN - 683 575.
BY ADVS.
K.KRISHNA
ACHYUTH MENON
NIRMAL KRISHNAN
RESPONDENT:
THE INTELLIGENCE OFFICER,
INTELLIGENCE UNIT, STATE GOODS AND SERVICE TAX
DEPARTMENT, MINI CIVIL STATION, PERUMBAVOOR, ERNAKULAM,
PIN - 683 542.
BY SMT.THUSHARA JAMES, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
03.09.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 30648 OF 2024
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JUDGMENT
The petitioner in this case is a Co-operative Society. They
have approached this Court challenging summons issued to them
under Section 70 of the CGST / SGST Acts. It is the case of the
petitioner that the principle of mutuality applies and at least till
31.12.2021 they were immune from the levy of GST on account of the
application of the principle of mutuality. Reference is in this regard
is also made to the judgment of this Court in Indian Medical
Association v. Union of India and others [Judgment dated
23.07.2024 in W.P(C)No.23853 of 2023]. They pray that a
declaration be granted that they are not liable to the levy of G.S.T.
2. The learned Government Pleader submits that the
petitioner is not entitled to any relief. It is submitted that in the
Indian Medical Association (supra) referred to by the learned
counsel for the petitioner, it has been held that there is no principle
of mutuality in respect of the services offered by the Indian Medical
Association to its members. It is submitted that similarly, the
services offered by the petitioner society to its members cannot be
said to be immune from the liability to GST on account of the
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principle of mutuality. It is submitted that the petitioner has only
been issued with a show cause notice and it is for the petitioner to
appear before the competent authority and substantiate that they
are not liable to GST in case they have such a case.
3. Having heard the learned counsel appearing for
the petitioner and the learned Government Pleader and having
regard to the facts and circumstances of this case, I am of the
opinion that since only a show cause notice has been issued to the
petitioner, it is premature for the petitioner to challenge the same by
approaching this Court by filing a writ petition. If the petitioner has
a case that services to its members are not liable to GST, it is for the
petitioner to establish the same before the authorities. Any
contention of the petitioner on the basis of the findings of this Court
in Indian Medical Association (supra) can also be considered by the
competent authority, in accordance with the law.
In the light of the above, this writ petition will stand
disposed of directing the respondent to consider the claim, if any, of
the petitioner after adverting to any reply that may be filed by the
petitioner and affording to them an opportunity of hearing and in
accordance with the law, as expeditiously as possible and at any rate,
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within a period of two months from the date of receipt of a certified
copy of this judgment. I make it clear that I have not expressed any
opinion on the merits of the petitioner's contention and it will be
open to the competent authority to decide the matter, in accordance
with the law.
Sd/-
GOPINATH P.
JUDGE
DK
WP(C) NO. 30648 OF 2024
2024:KER:66518
APPENDIX OF WP(C) 30648/2024
PETITIONER EXHIBITS
Exhibit P1 COPY OF SUMMONS ISSUED BY THE
RESPONDENT DTD. 09-10-2023
Exhibit P2 COPY OF STATEMENT SUBMITTED BY THE
PETITIONER BEFORE THE RESPONDENT DTD.
26-10-2023
Exhibit P3 COPY OF SUMMONS ISSUED BY THE
RESPONDENT DTD. 02-05-2024
Exhibit P4 COPY OF SHOW CAUSE NOTICE ISSUED BY THE
RESPODNENT DTD. 25-07-2024
Exhibit P5 COPY OF REPLY FILED BY THE PETITIONER
BEFORE THE RESPONDENT DTD. 19-08-2024
Exhibit P6 COPY OF JUDGMENT IN WPC NO. 6774/2012
OF THIS HON'BLE COURT DTD. 05-02-2013
Exhibit P7 COPY OF JUDGMENT IN WPC NO. 19231/2023
OF THIS HON'BLE COURT DTD. 14-06-2023
