Writ Petition No. 9121 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.9121 OF 2025 (T-RES) BETWEEN: M/S SAI INFRA EQUIPMENTS PVT LTD., (A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) REPRESENTED BY ITS MANAGING DIRECTOR, MR. ILANGO KATHIRVELU, AGED ABOUT 62 YEARS NO.1, SAI AVENUE, GREEN GLEN LAYOUT OUTER RING ROAD, BELLANDUR, BENGALURU - 560 103. (BY SRI. HANJER RAGHAVENDRA BASAVARAJ, ADVOCATE) …PETITIONER AND: Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-015, 6TH FLOOR, BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 095. 3. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS) -4 - 2 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 NO.640, 6TH FLOOR, BMTC BUILDING, 80 FEET ROAD KORAMANGALA BENGALURU - 560 095. …RESPONDENTS
Legal Reasoning
(BY SRI. HEMA KUMAR K., AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED SHOW CAUSE NOTICE ISSUED UNDER SECTION 73(1) OF THE GOODS AND SERVICES TAX ACT, 2017 BEARING NO. ACCT(P).LGSTO-15/DRC-01/2023-24 DATED 15.12.2023 ALONG WITH SUMMARY OF SHOW CAUSE NOTICE BEARING REFERENCE NO. ZD291223039661F DATED 15.12.2023 ISSUED IN FORM GST DRC-01 VIDE ANNEXURE- A BY THE RESPONDENT NO.2, THE IMPUGNED ORDER UNDER SECTION 73 OF THE KGST ACT, 2017 DATED BEARING 30.03.2024 ALONG WITH SUMMARY OF THE ORDER BEARING REFERENCE NO.ZD290424050027J PASSED IN FORM GST DRC-07 DATED 20.04.2024 VIDE ANNEXURE- B BY THE RESPONDENT NO.2 IMPUGNED ORDER NO.ZD290325030115Q DATED AND THE 11.03.2025 ALONG WITH SUMMARY OF THE DEMAND AFTER ISSUE OF RECTIFICATION ORDER NO.ZD290325030179C PASSED IN APPEAL NO.GST.AP.742/2024-25 VIDE ANNEXURE-C BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-4, BENGALURU; AND ETC. NO.CTO(P)/LGSTO-015/DRC-07/2023-24 THIS PETITION COMING ON FOR PRELIMINARY HEARING, 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, order or direction in the nature of Certiorari by quashing the impugned Show Cause Notice under Section 73(1) of the GST Act, 2017 bearing No.ACCT(P).LGSTO- 15/DRC-01/2023-24 dated 15.12.2023 along with Summary of Show Cause Notice bearing Reference No.ZD291223039661F dated 15.12.2023 issued in Form - 3 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 GST DRC-01 (Annexure-A) by the 2nd respondent, the impugned Order under Section 73 of the KGST Act, 2017 bearing No.CTO(P)LGSTO-015/DRC.07/2023-24 dated 30.03.2024 along with Summary of the Order bearing Reference No.ZD2904240500273J passed in FORM GST the 2nd DRC-07 dated 20.04.2024 (Annexure-B) by respondent and the impugned
Decision
Order No.ZD290325030115Q dated 11.03.2025 along with Summary of the demand after issue of rectification order No.ZD290325030179C passed in Appeal No.GST.AP.742/2024-25 (Annexure-C) by the Joint Commissioner of Commercial Taxes (Appeals)-4, Bangalore; b) Consequently, issue a writ, order or direction in the nature of any writ declaring that the input tax credit of IGST claimed by the petition but not reflected in the GSTIN Portal for the tax period April 2018 to March 2019 is in accordance with the provisions of Section 16(1) of the CGST Act, 2017/KGST Act, 2017; c) Alternatively, issue a writ, order or direction in the nature of Certiorari by quashing the impugned Order No.ZD290325030115Q dated 11.03.2025 along with Summary of the demand after issue of rectification order No.ZD290325030179C passed in Appeal No.GST.AP.742/2024-25 (Annexure-C) by the Joint Commissioner of Commercial Taxes (Appeals)-4, Bangalore in rejecting the appeal on time bar and thereby, remand the matter back to the Joint Commissioner of Commercial Taxes (Appeals)-4, Bangalore to consider the appeal on merits after condoning the delay in filing of appeal; - 4 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 d) Pass such other orders or directions as deemed fit and proper in the facts and circumstances of the case in the interest of justice." 2. Heard learned counsel for the petitioner and learned Additional Government Advocate for respondents and perused the material on record. 3. A perusal of the material on record will indicate that, pursuant to the Show Cause Notice dated 15.12.2023 issued by the respondent No.2 under Section 73(1) of the Goods and Services Act, 2017 to the petitioner, the petitioner did not submitted reply to the same and respondent No.2 proceeded to pass the impugned order dated 30.03.2024 (Annexure-B), which was communicated to the petitioner only on 20.04.2024 as is clear from the summary of the order enclosed to the impugned order. Being aggrieved by the said impugned order passed by the respondent No.2, the petitioner had filed Appeal before the Appellate Authority on 19.08.2024 along with application for condonation of delay inter alia contending that the impugned order passed by the respondent No.2 was communicated to the petitioner only on 20.04.2024 and consequently in the light of Section 107(1) of the KGST Act, appeal was filed within the extendable/condonable period of thirty days and therefore the petitioner is entitled to prosecute the appeal on merits by condoning the delay. - 5 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 4. It is submitted by learned counsel for the petitioner that, despite the petitioner filing the appeal within a condonable/extendable period of thirty days as contemplated under Section 107(4) of the KGST Act, the Appellate Authority had dismissed the appeal by mis-calculating/wrongly calculating the period of limitation as beyond 120 days, which is factually incorrect and contrary to the material on record warranting interference in the present petition by this Court. 5. Per contra, learned Additional Government Advocate for respondents submits that, there is no merit in the petition and that the same is liable to be dismissed. 6. As rightly contended by learned counsel for the petitioner, a perusal of order dated 30.03.2024 will indicate that the same was an ex- parte order without the petitioner participating in the said proceedings nor being aware of the said order. On the other hand, the petitioner became aware of the impugned order dated 30.03.2024 only on 20.04.2024 when the same was communicated to him as is clear from the summary of the adjudication order which was served upon the petitioner. It is therefore, clear that, the period of limitation would commence only on 21.04.2024 and consequently, the appeal filed by the petitioner on 19.08.2024 along with the application for condonation of delay would be perfectly within the period of1 20 days (90 days + 30 days) is - 6 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 condonable/extendable period of thirty days as contemplated under Section 107(4) of the KGST Act. 7. Under these circumstances, I am of the considered opinion that the Appellate Authority mis-calculated/wrongly calculated the period of limitation as being beyond 120 days and as such, the impugned order passed by the Appellate Authority deserves to be set-aside. 8. Insofar as the application for condonation of delay is concerned, having regard to the fact that the delay in filing the appeal beyond 90 days and within 120 days has been satisfactorily explained by the petitioner in the affidavit in support of application, I am of the considered opinion that the application for condonation of delay deserves to be allowed and matter be remitted back to the Appellate Authority for reconsideration of the appeal on merits. 9. In the result, I pass the following: O R D E R 1) The Petition is hereby allowed; 2) Impugned order at Annexure-C dated 11.03.2025 passed by the Joint Commissioner of Commercial Taxes (Appeals)-4, Bengaluru is set-aside; 3) Application filed for condonation of delay in filing the appeal at Annexure-G dated 25.09.2024 is allowed - 7 - NC: 2025:KHC:13149 WP NO.9121 OF 2025 and consequently delay in filing the appeal in GST.AP.742/2024-25 is hereby condoned and appeal is restored to the file of the Appellate Authority for disposal on merits; 4) The Appellate Authority-Joint Commissioner of Commercial Taxes (Appeals)-4, Bengaluru is directed to dispose of the appeal filed by the petitioner on merits without reference to the limitation which stands concluded in favour of the petitioner by virtue of the present order. SD/- (S.R. KRISHNA KUMAR) JUDGE ARK List No.: 1 Sl No.: 41