Kerala HC Crushes Rs. 47 Crore Penalty On Flipkart

The High Court of Kerala suppressed Rs. 47-crore fine notice on Flipkart, the e-business company, for side stepping Value Added Taxes. Issuing the order, A.K. Jayasankaran Nambiar of the High Court said a perusal of the notice issued to the company continued to reach distinct conclusions as respects to the commission of an offense by the assessee than expressing the reasons that incited the Revenue authorities to suspect an avoidance with tax and calling for the clarification of the assessee to those reasons.

HC-Quashes-Rs. 47-Crore-Penalty-Flipkart
HC cancels Rs. 47 crore penalty on Flipkart

There is no sign in the notice in respect to why the Revenue authorities considered the petitioner as a dealer or why the transactions being referred to must be dealt with as local deals as against inter State sales. The WS retail, the merchant in charge of effecting majority share of the sales to the customers in Kerala through the online portal of the petitioner is registered as a dealer under the Kerala Value Added Tax Act. Court said it had additionally not hide any assessable turnover under the Act.

The Flipkart had battled that it didn’t sell goods to customers and was just giving an online market sector stage to its customers to purchase products. It said, the sellers of different goods would sell their items specifically to purchasers. The court, which suppressed the notices watched that the findings in the orders issued by the authorities mirrored a patent non-use of brain furthermore likened to mediation. The Intelligence Officers of the division ought to alude the case to the assessing officers of the department worried for concluding the risk of tax before taking response to the penal procurements of the Act.