KOCHI: The Kerala High Court on Friday stayed till March 23, the further proceedings against Flipkart, leading e-commerce company, based on the notice of demand issued by the Commercial Taxes Department imposing fine for alleged tax evasion.
Justice A K Jayasankaran Nambiar issued the order while considering the petition filed by Flipkart Internet Private Limited challenging the notice. The court also issued notice to the state government and the Taxes Department. According to the petitioner, the company is engaged in providing services of online market place to its customers through its website. The sellers of various goods listed on the website sell the goods directly to the customers and it is the sellers who pay Value Added Tax (VAT)/ Central Sales Taxes (CST) as applicable. The company does not own the goods.
The company acts as a mere facilitator between the buyer and the seller. There was no sale of goods to be liable under the Kerala VAT Act, 2003 or the CST Act. The department issued two notices to the company in November asking them to explain why penalties of `9.49 crore and `37.65 should not be imposed for violating Kerala VAT Act.