Writ Petition No. 5598 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:14433 WP No. 5598 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.5598 OF 2024 (T-RES) BETWEEN: M/S TOYODA GOSEI SOUTH INDIA PVT. LTD., TOYOTA TECHNOPARK, BUILDING NO.1, PLOT NO.20, BIDADI INDUSTRIAL AREA, BIDADI, BANGALORE – 562 109 (REPRESENTED BY SHRI. BIJAY KRISHNA SHRESTHA, MANAGING DIRECTOR) PURSUANT TO SUB-SECTION (2) OF SECTION 7 OF THE COMPANIES ACT 2013 AND RULE 8 OF THE COMPANIES (INCORPORATION) RULES, 2014) (BY SRI. RAVI RAGHAVAN A/W SRI SYED M. PEERAN, SRI. ROHAN KARIA & SMT. AYUSHREE JHAWAR, ADVOCATES) …PETITIONER AND: Digitally signed by CHANDANA B M Location: High Court of Karnataka 1. JOINT COMMISSIONER OF CENTRAL TAX, BENGALURU WEST COMMISIONERATE, 1ST FLOOR, BMTC BUILDING, BANASHANAKRI, BENGALURU – 560 070. 2. ADDITIONAL COMMISSIONER OF CENTRAL TAX (ANTI EVASION), BENGALURU WEST COMMISSIONERATE, 1ST FLOOR, BMTC BUILDING, BANASHANKARI, BENGALURU – 560 070. …RESPONDENTS
Legal Reasoning
(BY SRI. JEEVAN J. NEERALGI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER BEARING NO. F. NO. GEXCOM/ADJN/GST/836/2023-ADJ- O/O PR.COMMR-CGST-BENGALURU (W) AND ORDER-IN-ORIGIINAL - 2 - NC: 2025:KHC:14433 WP No. 5598 of 2024 NO. 113/2023-24 DATED 29.12.2023 PASSED BY THE RESPONDENT NO.1 ENCLOSED AT ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ or order or direction under Article 226 of the Constitution of India quashing the impugned
Decision
order bearing No.F.No. GEXCOM/ADJN/GST/836/2023-ADJ-O/o Pr.COMMR- CGST-BENGALURU(W) and Order-In-Original No. 113/2023-24 dated 29.12.2023 passed by the Respondent No.1 enclosed at Annexure-A; b) Hold that the Petitioner has rightly availed input tax credit of Rs.1,79,72,125/- in respect of the Integrated Tax paid under reverse charge mechanism on the manpower supply services received by the Petitioner during the period July 2017 to January 2023; c) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 3 - NC: 2025:KHC:14433 WP No. 5598 of 2024 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned Order at Annexure – A dated 29.12.2023 issued by respondent No.1 in order to point out that denial of the Input Tax Credit in favour of the petitioner for the period from July 2017 – March 2023 is illegal and arbitrary in the light of the Circular No.211/5/2024- GST dated 26.06.2024, which has been relied upon by this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024. It is therefore submitted that the impugned Order at Annexure – A deserves to be quashed to the extent of denial of Input Tax Credit in favour of the petitioner and the matter remitted back to respondent No.1 for reconsideration afresh in accordance with law. 4. It is also submitted that the valuation for the purpose of payment of taxes plus interest is covered by Circular No.210/4/2024-GST dated 26.06.2024 and the decision of the Delhi High Court in the case of Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another - 4 - NC: 2025:KHC:14433 WP No. 5598 of 2024 – 2025 (2) TMI 245 – Delhi High Court. It is therefore submitted that the petition may be allowed and disposed of accordingly. 5. It is further submitted that though respondent No.1 purportedly invoked Section 74(1) of the CGST / KGST Act for the purpose of initiating proceedings, the same may be treated / construed as proceedings under Section 73 of the CGST / KGST Act so as to enable the petitioner to avail the benefit of Amnesty scheme under Section 128A of the CGST Act. 6. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 7. A perusal of the material on record will indicate that insofar as challenge to the impugned Notice at Annexure – A coupled with the contention that the petitioner would be entitled to avail Input Tax Credit under Section 16(4) of the CGST / KGST Act is concerned, in the light of the aforesaid judgment of this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd.’ case supra, petitioner is to be relegated back to respondent No.1 for consideration of its claim in accordance with law in the light of the said decision and the Circular No.211/5/2024-GST dated 26.06.2024. - 5 - NC: 2025:KHC:14433 WP No. 5598 of 2024 8. Insofar as the valuation regarding payment of tax and interests are concerned, in view of Circular No.210/4/2024-GST dated 26.06.2024 even this issue would necessarily have to be decided by respondent No.1 in accordance with law and the decision of Delhi High Court in Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court. 9. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Order at Annexures – A dated 29.12.2023 issued by respondent No.1 is hereby quashed. (iii) Petitioner is relegated to the stage of filing reply to the Show Cause Notice at Annexure – AA dated 27.09.2023 before respondent No.1. (iv) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.1, who shall consider the same and pass appropriate orders in accordance with law bearing in mind the judgment - 6 - NC: 2025:KHC:14433 WP No. 5598 of 2024 of this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024; the decision of Delhi High Court in Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court; Circular No.211/5/2024-GST dated 26.06.2024 and Circular No.210/4/2024-GST dated 26.06.2024. (v) All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. (vi) Liberty is reserved in favour of the petitioner to seek the benefit of Amnesty scheme before respondent No.1 by converting the proceedings from Section 74 to Section 73 for the purpose of availing Amnesty scheme under Section 128A of the CGST Act. If such a request for availing Amnesty Scheme is made by the petitioner, the respondent No.3 shall consider the same and proceed further in accordance with law. SV Sd/- (S.R.KRISHNA KUMAR) JUDGE