MODICARE LIMITED v. THE ASST. COMMISSIONER & ORS.

Introduction

This judgment reaffirms the constitutional validity of Section 174(2) of the Kerala State GST Act, 2017, which preserves proceedings, liabilities and rights arising under the repealed tax laws after the introduction of GST. The Kerala High Court held that the issue had already been conclusively decided by the Division Bench in Sheen Golden Jewels (India) Pvt. Ltd. v. State Tax Officer (IB) and therefore no fresh challenge could be entertained. However, consistent with the earlier judgment, the Court granted liberty to the appellant to pursue the appropriate statutory remedies within the time granted by the Division Bench.

Background of the Case

The appellant, Modicare Limited, challenged the constitutional validity of Section 174(2) of the Kerala State GST Act, 2017, which contains the saving clause preserving proceedings under the repealed tax enactments.