BY SRI. ARAVIND v. CHAVAN
Case Details
- 1 - NC: 2025:KHC:16543 WP No. 10324 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10324 OF 2025 (T-RES) BETWEEN: SHRI. T. VIJAY KUMAR, (PROPRIETOR) NO.22, SATHYA SAI NILAYAM, MARATHAHALLI COLONY, CHINNAPPANAHALLI, BENGALURU – 560 037. (REPRESENTED BY ITS PROPRIETOR S/O. LATE THIPPAREDDY AGED ABOUT 55 YEARS) (BY SRI. CHIDANANDA URS B G., ADVOCATE) …PETITIONER AND: 1. 2. 3. ASSISTANT COMMISSIONER OF CENTRAL TAX, GST COMMISSIONERATE, BENGALURU EAST DIVISION-5, TTMC/BMTC BUILDING, 2ND FLOOR, DOMMALURU, BENGALURU – 560 071. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-46, 1ST FLOOR, RAKSHITHA COMPLEX, INDIRANAGAR 1ST STAGE, BENGALURU – 560 038. THE DEPUTY DIRECTOR, DIRECTORATE GENERAL OF GST INTELLIGENCE, BENGALURU ZONAL UNIT, NO.112, S.P.ENCLAVE, K.H.ROAD, BENGALURU – 560 027.
Legal Reasoning
(BY SRI. ARAVIND V. CHAVAN, ADV. FOR R1 & R3; SMT. JYOTI M. MARADI, HCGP FOR R2) …RESPONDENTS Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:16543 WP No. 10324 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE DEMAND UNDER SECTION 74(1) OF THE ACT AND TO READ DOWN INVOKING THE PROVISIONS OF SECTION 73(1) THE ORDER PASSED BY RESPONDENT NO.1 IN DIN- 20241257000000333F29 FOR THE PERIOD JULY, 2017 TO MARCH, 2022 DATED 09.12.2024 WHICH IS HEREWITH ENCLOSED AS ANNEXURE G 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 ORAL ORDER In this petition, the petitioner seeks the following reliefs: “(a) Issue a writ of Mandamus, or such other writ, order or direction as this Hon'ble Court may deem fit to set aside the demand under Section 74(1) of the Act and to read down invoking the provisions of Section 73(1) the
Decision
order passed by Respondent No.1 in DIN- 20241257000000333F29 for the period July, 2017 to March, 2022 dated 09.12.2024 which is herewith enclosed as Annexure "G", (b) Issue a writ of Certiorari, or such other writ, order or direction as this Hon'ble Court may deem fit and quash the Summary show cause notice issued under Section 73. in Form GST DRC 01 for the Financial Year 2019-20 by ACCT. LGSTO-46, Bangalore dated 09.05.2024 which is herewith enclosed as Annexure "E" and the consequential order passed by Respondent No.2 vide Assignment Number: CR-2023-24/2469 dated 27.8.2024 which is herewith enclosed as Annexure "F". - 3 - NC: 2025:KHC:16543 WP No. 10324 of 2025 (c) pass such other order, direction or writ as the Hon'ble High Court may deem fit and appropriate in the facts and circumstances of the case, in the interest of justice and equity.” 2. Heard learned counsel for the petitioner, learned counsel for respondent Nos.1 and 3 and learned HCGP for respondent No.2 and perused the material on record. 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 show-cause notice at Annexure-D dated 28.03.2024 issued by respondent No.3 for the tax period 2017 to 2022, in order to point out that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not submit reply and contest the said proceedings, which culminated in the impugned exparte adjudication order at Annexure-G dated 09.12.2024, which deserves to be set aside and the matter be remitted back to respondent No.1 for reconsideration afresh, in accordance with law. Learned counsel for the petitioner also invited my attention to the subsequent notice at Annexure-E dated 09.05.2024 issued by respondent No.2 – State Authorities in order to point out that in the - 4 - NC: 2025:KHC:16543 WP No. 10324 of 2025 light of Section 6(2)(b) of the CGST/SGST Act, the subsequent proceedings initiated by State Authorities were clearly barred and not maintainable and the impugned proceedings commencing from the show-cause notice at Annexure-D dated 28.03.2024, which culminated in the impugned order at Annexure-F dated 27.08.2024 is contrary to Section 6(2)(b) of the CGST/SGST Act and the same is illegal and arbitrary and the same deserves to be quashed. 4. Per contra, learned counsel for respondent No.1 – Central Tax Authorities submits that sufficient and reasonable opportunity was provided to the petitioner, who is not entitled to any indulgence in the present petition and the same is liable to be dismissed. 5. Learned AGA does not dispute the fact that while respondent No.1-Central Tax Authorities had issued show-cause notice on 28.03.2024, respondent No.2 – State authorities had subsequently issued summary of show-cause notice at Annexure-E dated 09.05.2024, which culminated in the impugned order at Annexure-F dated 27.08.2024. It is submitted that appropriate order may be passed in the instant petition. - 5 - NC: 2025:KHC:16543 WP No. 10324 of 2025 6. A perusal of the material on record will indicate that in so far as the impugned proceedings initiated by respondent No.2 – State Authorities vide Annexures-E and F are concerned, in the light of the undisputed fact that respondent No.1 – Central Tax Authorities had already instituted prior proceedings on 28.03.2024 vide Annexure-D for the tax period from 2017-18 to 2021-22, I am of the considered opinion that the impugned proceedings at Annexures-E and F initiated by respondent No.2 – State Authorities are illegal, arbitrary and without jurisdiction or authority of law and also contrary to the provisions contained in Section 6(2)(b) of the CGST/SGST Act and the same deserves to be quashed. 7. In so far as the impugned order at Annexure-G dated 09.12.2024 passed by respondent No.1 is concerned, a perusal of the same will indicate that the same is an exparte adjudication order, without the petitioner participating in the said proceedings and the petitioner did not submit his reply to the show-cause notice dated 09.05.2024 issued by the Central Tax Authorities and as such, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner to submit his reply and contest the proceedings on merits, I deem it just and - 6 - NC: 2025:KHC:16543 WP No. 10324 of 2025 appropriate to set aside the impugned order at Annexure-G dated 09.12.2024 and remit the matter back to respondent No.1 to the stage of petitioner submitting reply to the show-cause notice and proceed further, in accordance with law. 8. In the result, I pass the following: i) The petition is allowed. ORDER ii) The impugned order at Annexure-E dated 09.05.2024, the impugned order at Annexure-F dated 27.08.2024 and the impugned order at Annexure-G dated 09.12.2024, are hereby set aside. iii) The matter is remitted back to the stage of petitioner submitting reply to the show-cause notice at Annexure-D dated 28.03.2024 and proceed further, in accordance with law. iv) Petitioner is directed to appear before respondent No.1 on 19.05.2025, without awaiting further notice. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC: List No.: 1 Sl No.: 7