M/S.R.K. Security And Allied Services vs. The Assistant Commissioner Of Central Tax

Held

The Court held that the issue in controversy was directly covered by a judgment of a Co-ordinate Bench in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax. Following that precedent, the Court quashed the impugned Order-in-Original dated 31.08.2023 passed by the respondent. The matter was remitted back to the respondent to the stage post show cause notice for fresh adjudication in accordance with law. The Court did not specifically address the issue of lifting the lien on the bank account in its operative directions, but the general remittance implies that all consequential actions stemming from the quashed order would be reconsidered. The ratio decidendi is that challenges to Orders-in-Original should be set aside and matters relegated to the designated officers for reconsideration from the stage of the show cause notice, in line with the Karnataka Chinmaya Seva Trust judgment.

Facts

The petitioner, M/s. R.K. Security and Allied Services, filed a writ petition challenging an Order-in-Original (No. 42/2023-24/ST/ED3 dated 31.08.2023) passed by the Assistant Commissioner of Central Tax, East Division-3, Bengaluru East. The petitioner sought to quash this order and sought directions for re-adjudication of a show cause notice (SCN No. 246, dated 12.10.2021) without prejudice from previous findings. Additionally, the petitioner requested the lifting of a lien on their bank account imposed via GST DRC-13 dated 15.10.2024. The respondent is the Assistant Commissioner of Central Tax.

Key Issues

1. Whether the Order-in-Original No. 42/2023-24/ST/ED3 dated 31.08.2023, passed by the Assistant Commissioner of Central Tax, is liable to be quashed. 2. Whether the matter should be remitted back to the respondent for re-adjudication of the show cause notice bearing SCN No. 246, dated 12.10.2021, without prejudice from previous findings. 3. Whether the lien on the petitioner's bank account imposed vide communication in GST DRC-13 dated 15.10.2024 should be lifted. Petitioner's Arguments: The petitioner sought to quash the impugned order and requested a fresh adjudication of the show cause notice with an open mind, free from any prejudice from prior proceedings. They also sought the removal of the lien on their bank account. Respondent's Arguments: The respondent accepted notice. The judgment does not record specific arguments made by the respondent beyond accepting notice and appearing through counsel.