Facts of the Case

The petitioner was the highest bidder in an auction and obtained a licence for collecting gate fee at Valiyakada, Lekshmipuram Market for an amount of ₹10,50,000.

The petitioner approached the Kerala High Court seeking a direction to the Secretary of Chirayinkeezhu Grama Panchayat, the 2nd respondent, to consider and dispose of his representation dated 23 June 2021 in the light of the Government Order produced as Ext.P4, after providing him an opportunity of hearing.

According to the petitioner, he had successfully bid for the right to make collections for the year 2021–2022 and had remitted the entire bid amount. However, he was able to effect collections only during April 2021.

The petitioner stated that, due to the COVID-19 pandemic, no business was conducted in the market during May, June and July 2021.

The petitioner further stated in his representation that he had remitted ₹12,00,000 inclusive of GST. Since the market had to remain shut due to the widespread COVID-19 pandemic, he sought exemption from proportionate payments for May, June and July 2021.

Issues Involved

The principal issues arising in the matter were:

  1. Whether the petitioner’s representation seeking proportionate exemption from payments for the period during which the market remained shut because of the COVID-19 pandemic required consideration by the competent Panchayat authority.
  2. Whether the Secretary of the Grama Panchayat should be directed to take an appropriate decision on the petitioner’s representation in accordance with law.
  3. Whether the petitioner’s claim concerning the months of May, June and July 2021 should be examined in the light of the relevant Government Order produced as Ext.P4.

Petitioner’s Arguments

The petitioner contended that:

  • He was the highest bidder and obtained the licence for collection of gate fee at Valiyakada, Lekshmipuram Market for ₹10,50,000.
  • He had remitted the entire bid amount.
  • Although the auction right related to the year 2021–2022, he could make collections only during April 2021.
  • No business was conducted in the market during May, June and July 2021 because of the COVID-19 pandemic.
  • He had remitted ₹12,00,000 inclusive of GST.
  • Since the market had to be shut due to the widespread COVID-19 pandemic, he should be exempted from making proportionate payments for May, June and July 2021.
  • His representation dated 23 June 2021 should be considered and disposed of in the light of the Government Order produced as Ext.P4, after granting him an opportunity of hearing.

Respondents’ Arguments

The Standing Counsel appearing for the respondents submitted that:

  • Taking into consideration the COVID-19 pandemic, the Grama Panchayat authorities had already granted exemption for two months to all licensees and tenants.
  • The petitioner’s representation produced as Ext.P3 could nevertheless be considered in accordance with law.

Court Order / Findings

The Kerala High Court disposed of the writ petition by directing the 2nd respondent, namely the Secretary of Chirayinkeezhu Grama Panchayat, to consider the petitioner’s Ext.P3 representation and take an appropriate decision thereon in accordance with law.

The Court further directed that such decision should be taken within a period of one month.

Accordingly, the Court did not itself determine or quantify the petitioner’s entitlement to a proportionate exemption for the disputed months. Instead, it required the competent Panchayat authority to consider the pending representation and take an appropriate decision in accordance with law within the prescribed period.

Important Clarification

A significant clarification emerging from the judgment is that the Kerala High Court did not directly grant the petitioner exemption from licence-related payments for May, June and July 2021.

The Court also did not make a final determination that the petitioner was legally entitled to a three-month proportionate waiver or refund.

The operative relief was limited to a direction requiring the Secretary of the Grama Panchayat to:

  • consider Ext.P3 representation;
  • take an appropriate decision in accordance with law; and
  • complete the exercise within one month.

It is also relevant that the respondents informed the Court that, considering the COVID-19 pandemic, the Grama Panchayat authorities had already granted exemption for two months to all licensees and tenants.

Therefore, the judgment should be understood as a direction for administrative consideration of the petitioner’s individual representation rather than as an unconditional judicial grant of proportionate exemption.

Sections / Legal Provisions Involved

Specific statutory section: The judgment does not expressly identify or adjudicate upon any specific statutory section.

Nature of proceeding: Writ Petition (Civil) seeking judicial direction for consideration and disposal of a pending representation.

Relevant administrative material referred to in the judgment:

  • Ext.P3 – Representation dated 23 June 2021 submitted by the petitioner before the 2nd respondent.
  • Ext.P4 – Government Order No. GO (MS) No. 261/2021/LSGD dated 06 November 2021.

GST Aspect: The judgment records the petitioner’s statement that he had remitted ₹12,00,000 inclusive of GST. However, the Court did not adjudicate any independent dispute concerning levy, assessment, refund, input tax credit, or interpretation of a specific provision of GST law.

Link to download the order-https://mytaxexpert.co.in/uploads/1783502667_3052.pdf

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