AND AUTHORISED SIGNATORY AND DIRECTOR BHARATI BALAKRISHNAN. (BY SRI. ACHAL ANAND v. J
Case Details
- 1 - NC: 2025:KHC:17248 WP No. 1465 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 1465 OF 2025 (T-RES) BETWEEN: SHOPIFY COMMERCE INDIA PRIVATE LIMITED A PRIVATE LIMITED COMPANY INCORPORATED UNDER COMPANIES ACT, 2013 HAVING ITS OFFICE AT NO.10, PARK ROAD TASKER PARK, SHIVAJI NAGAR BENGALURU-560051 AND AUTHORISED SIGNATORY AND DIRECTOR BHARATI BALAKRISHNAN. (BY SRI. ACHAL ANAND V. J., ADV.) AND: 1. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)- 1.3, DGSTO- 1, 3RD FLOOR, TMTC BUILDING, YESHWANTHPUR, BENGALURU -560022. 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (AUDIT) -5.7, DGSTO-5, 'B' BLOCK, VTK-2 BUILDING, BENGALURU- 560047. Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA …PETITIONER - 2 - NC: 2025:KHC:17248 WP No. 1465 of 2025 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-5.1, DGSTO-5, ROOM NO. 404, 4TH FLOOR, B-BLOCK, VTK-2, KORAMANGALA, BENGALURU -560047. 4. 5. JOINT COMMISSIONER OF COMMERCIAL TAXES, DGSTO-1, 3RD FLOOR, TMTC BUILDING, YESHWANTHPUR, BENGALURU- 560022. JOINT COMMISSIONER OF COMMERCIAL TAXES, DGSTO-5, 'B' BLOCK, VTK-2 BUILDING, BENGALURU -560047.
Legal Reasoning
(BY SRI. K. HEMAKUMAR, AGA FOR R1 TO R5) …RESPONDENTS THIS PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE SHOW CAUSE NOTICE IN FORM GST DRC-01 BEARING REFERENCE NUMBER ZC291124135375F AND NUMBER DGSTO- 1/DCCT(AUDIT)-1.3/A AND A.NO.-552/2024-25 DATED 26.11.2024 (ANNX-B) ISSUED BY THE R-1 UNDER SECTION 73 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2025:KHC:17248 WP No. 1465 of 2025 ORAL ORDER In this petition, the petitioner seeks the following reliefs: a) Stay of the operation of show cause notice in Form GST DRC – 01 bearing No.DGSTO-1/DCCT(AUDIT)-1.3/A & A.No.552/2024-25 dated 26th November 2024 (Annexure-B) issued by Respondent No.1 under Section 73 of the Central Goods and Services Tax Act, 2017; b) Stay of the operation of show cause notice in Form GST DRC 01 bearing No.DGSTO- 1/DCCT (AUDIT)-1.3/A & A No.564/2024-25 dated 28th November 2024 (Annexure-C) issued by the Respondent No.1 under Section 73 of the Central Goods and Services Act, 2017; c) Issue directions to the Respondents not to take any coercive or precipitative measures against the Petitioner till the pendency of the writ petition; and - 4 - NC: 2025:KHC:17248 WP No. 1465 of 2025 d) Pass any other order as it may deem fit in the facts and circumstances of the case. 2. A perusal of the material on record will indicate that the respondents issued impugned show cause notices at Annexure-B dated 26.11.2024 and Annexure-C dated 28.11.2024 to the petitioner under Section 73(1) of the KGST Act, to which the petitioner did not submit any reply, pursuant to which, the respondents proceeded to pass the impugned Order-in-Original at Annexures-X and Y dated 25.02.2025 and 25.02.2005 respectively, aggrieved by which, the petitioner is before this Court, by way of present writ petition. 3. It is submitted by the learned counsel for the petitioner that once the aforesaid show-cause notices were challenged by the petitioner in the present petition, the petitioner did not submit any reply to the same. During the pendency of the present petition, the respondents proceeded to pass - 5 - NC: 2025:KHC:17248 WP No. 1465 of 2025 impugned adjudication orders without there being any reply submitted by the petitioner and as such, it is necessary that the impugned adjudication orders at Annexures-X and Y both dated 25.02.2025 are required to be set aside and the matter is remitted back to the respondents for re-consideration afresh to the stage of petitioner submitting reply to the show-cause notices and to proceed further in accordance with law. 4. Per contra, learned AGA submits that since the impugned orders were passed during the pendency of the present proceedings, if the petitioner intends to file any reply to the show-cause notices along with documents and contest the proceedings by depositing 10% of the tax demand, the impugned orders which have come into existence during the pendency of the present petition may set aside and the matter be remitted back to the respondents for re-consideration afresh in accordance with law. - 6 - NC: 2025:KHC:17248 WP No. 1465 of 2025 5. In view of the aforesaid submissions made by both sides, though several contentions have been urged by both sides in support of their respective claim, without expressing any opinion on the merit/demerits of the rival contentions, I deem it just and appropriate to set aside the impugned adjudication orders at Annexures-X and Y dated 25.02.2025 and remit the matter back to respondent No.1 for re-consideration afresh by issuing certain directions. 6.
Decision
In the result, I pass the following: ORDER (i) The writ petition is hereby allowed. (ii) The impugned adjudication orders at Annexures-X and Y dated 25.02.2025 are hereby set aside and the matter is remitted back to Respondent No.1 for re-consideration afresh, in accordance with law subject to the condition that the petitioner deposits 10% of the tax amount demanded in the show-cause notices at - 7 - NC: 2025:KHC:17248 WP No. 1465 of 2025 Annexures-B and C dated 26.11.2024 and 28.11.2024 respectively within a period of six weeks from today. (iii) The petitioner is directed to appear before Respondent No.1 on 30.06.2025, on which date, the petitioner shall file objections, replies, pleadings, documents without awaiting any further notice from Respondent No.1, who shall consider the same and provide sufficient and reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. (iv) All rival contentions of all aspects of the matter are kept open and no opinion is expressed on same. (v) It is made clear that the aforesaid amount is deposited by the petitioner would be subject to the final outcome of the proceedings and no opinion is expressed on the same. (vi) It is further made clear that the petitioner would not be entitled to take up plea of limitation in the proceedings before Respondent No.1. - 8 - NC: 2025:KHC:17248 WP No. 1465 of 2025 (vii) It is further directed that in the event, the petitioner does not appear before Respondent No.1 on 30.06.2025, the present order shall stand automatically recalled and the petition is restored to file without further orders or further reference to Bench. Sd/- (S.R.KRISHNA KUMAR) JUDGE MPK CT:bms List No.: 2 Sl No.: 1