Even after the Kerala Goods and Services Tax Act came into force in Kerala, the Sales Tax Special Circle Commissioner sent a notice to Bhima Jewelery under the Kerala Value Added Tax Act. Bhima Jewelery filed a petition against this notice in the Kerala High Court, but the Single Bench and Division Bench of the Kerala High Court rejected these petitions.
But Bhima Jewelery filed a special leave petition in the Supreme Court and the Supreme Court Division Bench heard the petition and granted special leave. The Division Bench comprising of Justice Narasimha Pamidi Gum and Justice Arvind Kumar heard the case.Advocate Vimala Binu, a prominent advocate of the Kerala High Court, appeared in the Supreme Court on behalf of Bhima Jewellery.
A division bench of the Supreme Court heard a petition seeking to quash the notice for the assessment period 2016-2017 in 2018 under the KVAT Act after the Kerala Goods and Services Tax Act came into force and to quash it as unconstitutional.
Even after the Kerala Goods and Services Tax Act came into force in Kerala, the action of sending a notice to Bhima Jewelery under the Kerala Value Added Tax Act was illegal and unconstitutional.
