Kerala High Court
M/S. Hercules Automobiles ... vs Union Of India on 10 June, 2025
2025:KER:40440
WPC.No.21131/25 1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.
TUESDAY, THE 10TH DAY OF JUNE 2025 / 20TH JYAISHTA, 1947
WP(C) NO.21131 OF 2025
PETITIONER:
M/S.HERCULES AUTOMOBILES INTERNATIONAL PVT.
LTD.,
T.C. NO. 44/1781, FLOATELS CHAMBERS, OPP.
DR.RK'S LASER SKIN CARE CENTER,DPI ROAD,
JAGATHY,THIRUVANANTHAPURAM, REPRESENTED BY ITS
MANAGING DIRECTOR,ABDUL LATHEEF.M,
PIN - 695 014.
BY ADVS.
SMT.K.KRISHNA
SHRI.ACHYUTH MENON
SHRI.NIRMAL KRISHNAN
RESPONDENTS:
1 UNION OF INDIA,
REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY
OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK,
NEW DELHI, PIN - 110 001.
2 THE DEPUTY COMMISSIONER,
ADJUDICATION-II,STATE GOODS AND SERVICE TAX
DEPARTMENT,TAX PAYER SERVICES, TAX TOWERS,
KARAMANA, THIRUVANANTHAPURAM, PIN - 695 002.
2025:KER:40440
WPC.No.21131/25 2
3 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS,
GST POLICY WING, NORTH BLOCK, NEW DELHI ,
REPRESENTED BY PRINCIPAL COMMISSIONER (GST), PIN
- 110 001.
4 STATE OF KERALA,
REPRESENTED BY SECRETARY TO GOVERNMENT,TAXES
DEPT., GOVT. SECRETARIAT, THIRUVANANTHAPURAM,
PIN - 695 001.
SMT.JASMIN.M.M, G.P,
SMT.SREELAKSHMI SURESH, CGC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 10.06.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WPC.No.21131/25 3
JUDGMENT
The petitioner is an assessee under the provisions of CGST/SGST Acts. The petitioner was assessed by the 2 nd respondent for the year 2020-2021. However, input tax credit claimed by the petitioner for the assessment year was disallowed and demand of Rs.2,16,812/- along with interest and penalty were made as per Ext.P3 order. The reason for disallowing the input tax credit was that the petitioner could not trace out the suppliers with whom the relevant transactions were made. The learned counsel for the petitioner while challenging this, placed reliance upon Ext.P5 judgment rendered by this Court, wherein after referring to the decision rendered by this Court in M.Trade Links v. Union of India [2024 KLT Online 1624], granted a further opportunity to the petitioners therein to submit the documents relating to the transactions which are subject-matter of the dis-allowance of input tax credit. The petitioner seeks a similar benefit as granted to the petitioner in Ext.P5 judgment.
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2. On carefully going through the materials placed on record and the directions issued by this Court in Ext.P5 judgment, it can be seen that the same is passed in similar circumstances. Therefore, I do not find any reason to deny similar benefits being granted to the petitioner. In other words, as regards the claim of the input tax credit, the petitioner can be given an opportunity, in the light of the circulars referred to in M.Trade Links (supra). In such circumstances, for that limited purpose, Ext.P3 is set aside to the extent it denies the input tax credit on account of the provisions contained in Section 16(2)(c) and Section 16(4) of the CGST/SGST Acts.
It is made clear that the petitioner shall produce relevant documents in terms of the circular referred to paragraph No.101 of the judgment of this Court in M.Trade Links (supra), within a period of one month from the date of receipt of a copy of this judgment and in case the same is not produced, the petitioner shall not be entitled to the benefits of this judgment. Upon production of the same, the 2 nd 2025:KER:40440 WPC.No.21131/25 5 respondent shall complete the assessment in terms of the same. In case of failure, Ext.P3 would continue in operation.
Sd/-
ZIYAD RAHMAN A.A. JUDGE 2025:KER:40440 WPC.No.21131/25 6 APPENDIX OF WP(C) 21131/2025 PETITIONER EXHIBITS Exhibit P1 COPY OF SHOW CAUSE NOTICE ISSUED BY THE 2ND RESPONDENT DTD. 30-11-2024 Exhibit P2 COPY OF REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 07-01- 2025 Exhibit P3 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2020-21 DTD.
24-02-2025 Exhibit P4 COPY OF REPRESENTATION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 27-05-2025 Exhibit P5 COPY OF JUDGMENT IN WPC NO. 44849/24 OF THIS HON'BLE COURT DTD. 17-12-2024