M/S Ramms INDIA Private Limited vs. The Deputy Commissioner Of Commercial Taxes
Held
The High Court held that the petitioner, being an independent legal entity, could not be held liable for the dues of XRMPL solely based on a common director. Recovery from the petitioner without proper notice or liability was impermissible.
Facts
The petitioner's bank account was debited based on an adjudication order passed against another company (XRMPL) where the same director was present. The petitioner argued that it was an independent entity and not liable for XRMPL's dues.
Key Issues
Whether recovery of GST dues from a company is permissible when the adjudication order was passed against a different entity, despite a common director? Whether recovery from a third-party bank account is valid without proper notice to the account holder?
Sections Cited
Section 73, Section 79
AI-generated summary — verify with the full judgment below
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HC-KAR NC: 2025:KHC:54558 WP No. 34270 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 34270 OF 2025 (T-RES) BETWEEN:
M/S RAMMS INDIA PRIVATE LIMITED REGISTERED UNDER THE COMPANIES ACT, 1956/2013 CIN- U74300KA1994PTC016388 HAVING ITS REGISTERED OFFICE AT 115/1, KRISHNAPPA LAYOUT, LALBAGH ROAD, BENGALURU URBAN, KARNATAKA – 560 027 REPRESENTED BY ITS DIRECTOR SHRI. GAUTAM CHOWDHURY AGED ABOUT 66 YEARS, S/O SHRI. SISIR RANJAN CHOWDHURY, RESIDING AT NO.12, HANUMANTHAPPA ROAD, LINGARAJA PURAM, BENGALURU, KARNATAKA – 560 033 …PETITIONER (BY SRI. LAKSHMI MENON, ADVOCATE)
AND:
THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3.1, DGSTO-03, II FLOOR, BMTC BUILDING, SHANTI NAGAR, BENGALURU, KARNATAKA – 560 027
THE MANAGER CANARA BANK, 1-APR, WALTON ROAD, BENGALURU, KARNATAKA – 560 001
M/S. XYLEM RESOURCE MANAGEMENT PRIVATE LIMITED REGISTERED UNDER THE COMPANIES ACT, 1956/2013 CHANDANA B M Location: High Court of Karnataka
The judgment continues below.
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