Kerala High Court
Venkitangu Farmers Co-Operative Bank ... vs The Deputy Commissioner on 13 September, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:70085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
FRIDAY, THE 13TH DAY OF SEPTEMBER 2024 / 22ND BHADRA, 1946
WP(C) NO. 32737 OF 2024
PETITIONER:
VENKITANGU FARMERS CO-OPERATIVE BANK LTD.,
VENKTANGU, THRISSUR, REPRESENTED BY ITS MANAGING
DIRECTOR, AJITHKUMAR.K.R., PIN - 680 510.
BY ADVS.
K.KRISHNA
ACHYUTH MENON
NIRMAL KRISHNAN
RESPONDENTS:
THE DEPUTY COMMISSIONER,
AUDIT DIVISION - III, STATE GOODS AND SERVICE TAX
DEPARTMENT, THRISSUR, PIN - 680 004.
SMT. JASMINE M M (GP)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.09.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
The petitioner in this case is a Co-operative Society. They have
approached this Court challenging show cause notices issued to them
under Sections 73(1) and 74(1) 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 principle of mutuality. It is submitted
that the petitioner has only been issued with a show cause notice and it
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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, 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
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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. 32737 OF 2024
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APPENDIX OF WP(C) 32737/2024
PETITIONER EXHIBITS
Exhibit P1 COPY OF AUDIT OBSERVATION (REVISED)
ISSUED BY THE RESPONDENT DTD. 02-07-2024
Exhibit P2 COPY OF SHOW CAUSE NOTICE ISSUED BY THE
RESPONDENT DTD. 04-08-2024
Exhibit P2 (a) COPY OF SHOW CAUSE NOTICE ISSUED BY THE
RESPONDENT DTD. 04-08-2024
Exhibit P3 COPY OF REPLY FILED BY THE PETITIONER
BEFORE THE RESPONDENT DTD. 02-09-2024
Exhibit P3 (a) COPY OF REPLY FILED BY THE PETITIONER
BEFORE THE RESPONDENT DTD. 02-09-2024
Exhibit P4 COPY OF JUDGMENT IN WPC NO. 6774/2012 OF
THIS HON'BLE COURT DTD. 05-02-2013
Exhibit P5 COPY OF JUDGMENT IN WPC NO. 19231/2023 OF
THIS HON'BLE COURT DTD. 14-06-2023
