Writ Petition No. 32571 of 2024 · The High Court · 2024
Case Details
- 1 - NC: 2025:KHC:11508 WP No. 32571 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 32571 OF 2024 (T-RES) BETWEEN: M/S PUMA SPORTS INDIA PRIVATE LIMITED GROUND FLOOR, NO.496, MAHADEVAPURA MAIN ROAD MAHADEVAPURA, BENGALURU KARNATAKA-560048 COMPANY REGISTERED UNDER COMPANIES ACT, 1956 REPRESENTED BY ITS AUTHORIZED SIGNATORY SIDDARHT NANDU ASRANI DESIGNATED AS DIRECTOR-FINANCE R/A BLOOMSBURY APARTMENTS SF2, 14 SPENCER CROSS ROAD FRASER TOWN BANGALORE - 560 005. (BY SRI. G. SHIVADASS, SENIOR COUNSEL FOR SRI. PRASHANTH SBARISH SHIVADASS, ADVOCATE) …PETITIONER Digitally signed by LEELAVATHI S R Location: High Court of Karnataka AND: 1. UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NO.137, NORTH BLOCK NEW DELHI-110 001. 2. THE STATE OF KARNATAKA THROUGH THE PRINCIPAL SECRETARY FINANCE DEPARTMENT VIDHANA SOUDHA BENGALURU – 560 001. - 2 - NC: 2025:KHC:11508 WP No. 32571 of 2024 3. 4. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS THROUGH THE DIRECTOR MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL REVENUE BUILDINGS, L.P. ESTATE, ITO NEW DELHI -110 002. THE JOINT COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE BANGALORE EAST COMMISSIONERATE OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX GST COMMISSIONERATE BENGALURU EAST, 4TH FLOOR, BMTC BUILDING, OLD AIRPORT ROAD DOMLUR, ENGALURU – 560 071.
Legal Reasoning
(BY SRI.M.N. KUMAR, CGC FOR R-1 SRI. K. JEMA KUMAR, HCGP FOR R-2) …RESPONDENTS THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUITON OF INDIA PRAYING TO DIRECT, QUASHING THE IMPUGNED ORDER PASSED BY R-4 DTD 28.08.2024 HAVING ORDER-IN- ORIGINAL NO. 88/JC3/B-EAST/2024 WITH FILE NO. GEXCOM/ADJN/GST/JC/665/2024-ADJN AND DIN - 2024085700000000B1F2 ALONG WITH SUMMARY OF THE ORDER IN FORM GST DRC-07 DTD 28.08.2024 WITH REFERENCE NO. ZD290824098421Z FOR THE PERIOD OF APRIL 2019 - MARCH 2020, ENCLOSED AT ANNEXURE-A TO THE EXTENT PREJUDICIAL TO THE INTEREST OF THE PETITIONER. 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:11508 WP No. 32571 of 2024 ORAL ORDER In this petition, the petitioner seeks the following reliefs: a. To issue a Writ of Certiorari or any other Writ, order(s), directions, quashing the impugned order passed by Respondent dated 28 August 2024 having Order-in- Original No. 88/JC3/B-East/2024 with File No.: GEXCOM/ADJN/GST/JC/665/2024-ADJN and DIN- 2024085700000000B1F2 along with Summary of the Order in Form GST DRC-07 dated 28 August 2024 with Reference No.: ZD290824098421Z for the period of April 2019 March 2020, enclosed at Annexure-A to the extent prejudicial to the interest of the Petitioner; b. To issue a Writ of Certiorari or any other Writ, order(s), directions, quashing the Notification No.56/2023-CT dated 28.12.2023, enclosed as Annexure-R issued by the Respondent No. 1 as being issued in violation of the provisions of the CGST Act; c. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that Section 168A of the CGST Act is ultra vires the provisions of the CGST Act; d. To issue a Writ of Mandamus holding that the Petitioner has rightly availed Input Tax Credit; e. To issue a Writ of Mandamus holding that the Petitioner has not availed ineligible Input Tax Credit; f. To issue a Writ of Mandamus holding that the Petitioner does not need to reverse Input Tax Credit on account of failure of the Supplier to file Form GSTR-3B; - 4 - NC: 2025:KHC:11508 WP No. 32571 of 2024 g. To issues Order(s), Directions, Writ(s) or any other relief as this Hon'ble Court deems it fit and proper in the facts and circumstance of the case in the interest of justice.” 2. Heard learned Senior counsel for the petitioner, learned Central Government counsel for respondent No.1, learned High Court Government Pleader for respondent No.2 and learned counsel for respondent Nos.3 and 4 and perused the material on record. 3. Learned Senior counsel for the petitioner submits that he would not press prayer (c) in this petition and the said submission is placed on record. 4. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned Senior counsel for the petitioner submits that the petitioner invited my attention to the Circular bearing No.123/42/2019-GST dated 11.11.2019, Circular No.183/15/2022-GST dated 27.12.2022 and Circular No.193/05/23/GST dated 17.07.2022, in order to contend that despite having referred to the said three Circulars, respondent No.4 did not consider the claim of the petitioner qua said circulars on the sole ground that the petitioner had not produced relevant - 5 - NC: 2025:KHC:11508 WP No. 32571 of 2024 documents in this regard. In this context, it is contended that the impugned order may be set aside and remitted back to respondent No.4 for reconsideration afresh, in accordance with law. It is further submitted that the petitioner would produce all relevant documents and respondent No.4 may be directed to pass the appropriate orders, in accordance with law. 4.1. Secondly, learned Senior counsel invited my attention to the Amnesty Scheme under Section 128A of the Central Goods and Service Tax Act, 2017 (for short “the CGST Act”), in order to submit that after respondent No.4 quantifies the actual tax payable by the petitioner, the petitioner would be entitled to make an application to avail benefit of the said Amnesty Scheme and necessary directions may be issued in this regard. 5. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same may be dismissed. 6. As rightly contended by the learned Senior counsel for the petitioner, a perusal of the impugned order will indicate that respondent No.4 has referred to specific submission/contention of - 6 - NC: 2025:KHC:11508 WP No. 32571 of 2024 the petitioner that he places reliance upon the aforesaid three circulars in support of its claim. However, the said contention/claim had been rejected on the sole ground that the petitioner had not produced relevant documents in this regard as can be seen from page No.45 of the impugned order at paragraph 30, wherein respondent No.4 has come to the conclusion that the details, invoices, debit notes etc., have not been furnished by the petitioner. However, in the light of the specific assertion on the part of the petitioner that if one more opportunity is provided to the petitioner, the petitioner would file additional pleadings, documents etc., without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to set the impugned order and remit the matter back to the concerned respondent for reconsideration afresh and pass appropriate order, within a stipulated time frame, in accordance with law. 7. In so far as the submission made on behalf of the petitioner that they intend to avail the benefit of Amnesty scheme under Section 128A of the CGST Act is concerned, immediately upon respondent No.4 passing appropriate orders as stated supra, the petitioner would be entitled to make an application for the - 7 - NC: 2025:KHC:11508 WP No. 32571 of 2024 benefit under the earnesty scheme, which shall be considered by the concerned respondent, in accordance with law. 8.
Decision
In the result, I pass the following: (i) The petition is allowed. ORDER (ii) The impugned Order-in-Original at Annexure-A dated 28.08.2024 passed by respondent No.4 is hereby set aside. (iii) The matter is remitted back to respondent No.4 for reconsideration afresh and pass appropriate order, in accordance with law. (iv) Petitioner undertakes to appear before respondent No.4 on 24.03.2025. (v) Liberty is reserved in favour of the petitioner to file pleadings, documents etc., which shall be considered by respondent No.4, who shall pass appropriate order, in accordance with law, on or before 28.03.2025. (vi) Immediately upon passing orders, as stated supra, the petitioner would be entitled to file an application to avail the benefit under the Amnesty Scheme - 8 - NC: 2025:KHC:11508 WP No. 32571 of 2024 under Section 128(A) of the CGST Act, which shall be granted in favour of the petitioner, in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 64