Writ Petition No. 34797 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:14593 WP No. 34797 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 34797 OF 2024 (T-RES) …PETITIONER BETWEEN: SRI. VAGATARAM TARAJI PUROHIT, S/O TARAJI PUROHIT AGED ABOUT 41 YEARS RESIDING AT NO. B/B-305 SHRI SAI RATNAM CHS LIMITED B P ROAD BHYANDER EAST THANE MAHARASHTRA - 401105. (BY SRI. AJAY KUMAR N., ADVOCATE) AND: 1. 2. 3. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) TUMKUR VANIJYA THERIGE SANKIRNA SIDDARAMESHWARA EXTENSION JAYANGAR EAST TUMKUR - 572 103. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-175 1ST FLOOR, VANIJYA THERIGE SANKIRNA SIDDARAMESHWARA EXTENSION JAYANGAR EAST TUMKUR - 572 103. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (ADMINISTRATION ) DGSTO-6 KIADB BUILDING, 14TH CROSS PEENYA 3RD STAGE, 4TH PHASE BENGALURU - 560 058. 4. THE COMMISSIONER OF COMMERCIAL TAXES VANIJYA TERIGE KARYALAYA-1
Legal Reasoning
Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:14593 WP No. 34797 of 2024 GANDHINAGAR BENGALURU - 560 009.
Legal Reasoning
(BY SRI. HEMA KUMAR K., AGA) …RESPONDENTS THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING AND SETTING ASIDE THE PRE-INTIMATION NOTICE DATED 05.08.2023, BEARING REFERENCE IN FORM DRC-01A, WHICH WAS NOT NUMBER ZD2908230051797 SERVED TO THE PETITIONER AND REVERSAL CLAIMS BASED ON A GST REGISTRATION FRAUDULENTLY OBTAINED BY AN UNKNOWN INDIVIDUAL WITHOUT ANY INVOLVEMENT OR WRONGDOING ON THE PART OF THE PETITIONER WHICH IS AT ANNEXURE N. 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 Writ of Certiorari thereby, Quashing and setting aside the Pre-Intimation Notice dated 05-08-2023, bearing Reference Number: ZD2908230051797, in Form DRC-01A, which was not served to the Petitioner, and relates to fraudulent Input Tax Credit (ITC) reversal claims based on a GST registration fraudulently obtained by an unknown individual without any involvement or wrongdoing on the part of the Petitioner which is at ANNEXURE-N. (b) Issue Writ of Certiorari thereby, Quashing and setting aside the Show Cause Notice dated 16-08-2023, bearing Reference Number: ZD290823020606B, issued by the Respondent No.1 in Form DRC-01, which was never served upon the Petitioner, and which wrongfully implicates the Petitioner in fraudulent transactions and unauthorized - 3 - NC: 2025:KHC:14593 WP No. 34797 of 2024 GST registration without the Petitioner's knowledge or involvement which is at ANNEXURE-P. (c) Issue Writ of Certiorari thereby, Quashing and setting aside the Demand Order dated 19-09-2023, bearing Reference Number: ZD2909230295161,Issued by the Respondent No.1 under Section 74(9) read with Rule 142(5) of the KGST Act, 2017, along with the Summary of Order in DRC-07, as the same has been passed without serving the said demand order to the Petitioner and is based on fraudulent GST registration obtained by an unknown person using forged documents, causing grave injustice to the Petitioner which is at ANNEXURE-Q. (d) To issue a Writ of Mandamus or any other appropriate writs directing the Respondent No.1 to consider the Representation dated 26-02-2024 which is at ANNEXURE-G thereby directing the Respondent No.1 to issue necessary instructions to Union Bank of India Vile Parle (East), Thane Branch (IFSC: UBIN0546925) to immediately defreeze petitioner's bank Account number: 469202010016282 as stated in the petition above. (e) To grant appropriate compensation to the petitioner for the harassment and financial loss suffered due to the Respondents illegal actions, including freezing of his bank accounts, penal charges, and the damage caused to his credit and financial standing. (f) To grant such other and further reliefs as this Hon'ble court may deems fit in the interest of justice and equity.” - 4 - NC: 2025:KHC:14593 WP No. 34797 of 2024 2. Heard learned counsel for the petitioner and learned AGA for the respondents 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 submits that though the petitioner is not the proprietor of M/s. Asian Trading Company nor he has the alleged GST registration No.GSTN-29DDRPP6671R1Z2, but the respondents have initiated proceedings against the petitioner by issuing a pre-intimation notice dated 05.08.2023 vide Annexure-N, show-cause notice dated 16.08.2023 at Annexure-P culminating in the impugned order dated 19.09.2023, all of which were not served upon the petitioner, who did not receive the same and the said proceedings culminated in the impugned exparte Assessment Order. It is submitted that much prior to the aforesaid impugned proceedings, the petitioner had submitted various representations, complaints etc., regarding misuse of his Pan Card and Aadhar Card, which were never considered by the respondents, who mechanically proceeded against the petitioner, who lodged a complaint for misuse of his Pan and Aadhar and as such, the petitioner was not being in a position to contest the proceedings - 5 - NC: 2025:KHC:14593 WP No. 34797 of 2024 regarding the alleged fraud, impersonation, misrepresentations, etc., aggrieved by which the petitioner is before this Court by way of the present petition. 4. Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 5. A perusal of the material on record will indicate that though several contentions have been urged by the petitioner in support of his claim, by placing reliance upon various documents, it is an undisputed fact that the impugned order is an exparte order without petitioner contesting the proceedings nor submitting any reply. Under these circumstances, without expressing any opinion on the merits/demerits of the various contentions urged by the petitioner, including the contentions regarding fraud, misrepresentation, etc., I deem it just and appropriate to set aside the impugned order at Annexure-Q and remit the matter back to respondent No.1 for reconsideration, afresh, in accordance with law. 6.
Decision
In the result, I pass the following - 6 - NC: 2025:KHC:14593 WP No. 34797 of 2024 ORDER i. The writ petition is allowed. ii. The impugned order at Annexure-Q Dated 19.09.2023 passed by respondent No.1 is hereby set aside. iii. The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law. iv. The petitioner is directed to appear before respondent No.1 on 21.05.2025 without awaiting further notice. v. Liberty is reserved in favour of the petitioner to file pleadings, documents and take up all contentions including fraud, misrepresentation and impersonation etc. vi. Respondents as well as Union Bank of India, Sahajeevan, 19, Shradhanand road, Vile Parle (E), Mumbai-499057, shall defreeze the account of the petitioner in the said bank and permit the petitioner to operate the account subject to marking of lien to - 7 - NC: 2025:KHC:14593 WP No. 34797 of 2024 an extent of Rs.3,25,000/-, which would be subject to the final outcome of the proceedings. vii. In the event the petitioner does not appear before respondent No.1 on 21.05.2025, the present order shall automatically stand revived/recalled, without reference to the Bench. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 1 Sl No.: 13