Texport Syndicate (I) LTD vs. Union Of INDIA - Karnataka High Court, 09 December 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:52372 WP No. 14425 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.14425 OF 2021 (T-RES) BETWEEN: TEXPORT SYNDICATE (I) LTD., PLOT NO.84, INDUSTRIAL SUBURBS, 2ND PHASE, YESHWANTHPUR BANGALORE – 560 022 (REPRESENTED BY SHRI JAGMOHAN PAHUJA ASSOCIATE VICE PRESIDENT) …PETITIONER (BY SRI. RAVI RAGHAVAN, SRI. MD. IBRAHIM, SRI. TUSHAR SHARMA & SRI SYED M. PEERAN, ADVOCATES) AND: 1. UNION OF INDIA REPRESENTED BY ITS UNDER SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI – 110 001 2. ADDITIONAL / JOINT DIRECTOR DIRECTORATE GENERAL OF GOODS AND SERVICE TAX INTELLIGENCE NO.112, SP ENCLAVE, ADJACENT TO KARNATAKA BANK K H ROAD, BENGALURU – 560 027 3. ADDITIONAL / JOINT COMMISSIONER OF CENTRAL TAX BENGALURU NORTH WEST COMMISSIONERATE, BMTC, BUILDING, SHIVAJINAGAR, BENGALURU – 560 001 Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:52372 WP No. 14425 of 2021 4. SUPERINTENDENT (IGST) OFFICE OF ADDITIONAL COMMISSIONER OF CUSTOMS, ICD WHITEFIELD BANGALORE – 560 066 …RESPONDENTS (BY SRI. JEEVAN J. NEERALGI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 08.02.2021 ISSUED BY RESPONDENT NO.2 ENCLOSED AT ANNEXURE-A AS BEYOND JURISDICTION AND WITHOUT AUTHORTIY OF LAW AND QUASHING THE LETTER DATED 28.01.2020 ENCLOSED AS ANENXRUE-A1 ISSUED BY RESPONDENT NO.4 SUSPENDING THE OF IMPORTED-EXPORTER CODE OF THE PETITIONERS AS ILLEGAL AND CONSEQUENTLY ORDER FOR REVOKING THE SUSPENSION OF THE IMPORTER- EXPORTED CODE OF THE PETITIONER AND ETC., THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:

“(a) Issue a Writ of Certiorari or any other appropriate Writ, Order or direction, in the nature of Writ, quashing the Show Cause Notice dated 08.02.2021 issued by Respondent No.2 enclosed at Annexure-A as beyond juri iction and without authority of law and quashing the letter dated 28.01.2020 enclosed as Annexure-A1 issued by Respondent No.4 suspending of the Importer-Exporter Code of the Petitioners as illegal and consequently order for revoking the suspension of the Importer-Exporter code of the Petitioner. HC-KAR NC: 2025:KHC:52372 (b) to declare and hold that Rule 96(10) of the CGST Rules, 2017 as amended vide Notification No.54/2018-CT dated 09.10.2018 vide Annexure-A2 is ultra vires Section 163(3)(b) of the IGST Act, 2017 and illegal and violative of Article 14 and Article 19(1)(g) of Constitution of India; (c) to declare and hold that Rule 96(10) of the KGST Rules, 2017 as amended by Notification (4-U/2017) No. FD 47 CSL 2017 dated 27.10.2018 vide Annexure-A2 is ultra vires Section 16(3)(b) of the IGST Act, 2017 and illegal and violative of Article 14 and Article 19(1)(g) of Constitution of India; (d) to declare and hold that the clarifications provided under Para 7 of the Circular No.45/19/2018-GST, dated 30.05.2018, Para 5 of C.B.I. & C.Circular No.59/33/2018-GST, dated 04.09.2018, Para 3 of Circular No.70/44/2018-GST, dated 26.10.2018, Para 3 of Circular No.125/44/2019-GST, dated 18.11.2019 vide Annexure-A2 as being ultra vires Section 163(3)(b) of the IGST Act, 2017 and Article 14 and 19(1)(g) of the Constitution of India; (e) pass such other order or orders as the Hon’ble Court may deem fit and proper in the circumstances of the case, and in the interests of justice.”

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. HC-KAR NC: 2025:KHC:52372

In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the order of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

As rightly contended by the learned counsel for the petitioner the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of M/s – W.P.No.15251/2020 dated 09.12.2025, the operative portion of which reads as under:

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In view of the aforesaid facts and circumstances and striking down of Rule 96(10) of the CGST Act and the judgments of the Kerala High Court and other High Courts including Bombay High Court in the petitioner’s own case HC-KAR NC: 2025:KHC:52372 coupled with the fact that respondents themselves have omitted Rule 96(10) vide Notification dated 08.10.2024, I am of the considered opinion that the impugned Show Cause Notice and all further proceedings pursuant thereto deserves to be quashed.

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In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Show Cause Notice at Annexure – R dated 07.10.2020 issued by respondent No.5 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund IGST amounting to Rs.75,55,123/- along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order.”

The aforesaid order is applicable to the facts and circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of this Court in M/s Hikal Limited’s case supra.

In the result, I pass the following: ORDER (i) The petition is allowed and disposed of in terms of the decision of this Court in the case of M/s Hikal HC-KAR NC: 2025:KHC:52372 Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025. (ii) The impugned Show Cause Notice at Annexure – A dated 08.02.2021 issued by respondent No.2 and Letter dated 28.01.2020 at Annexure – A1 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund the amount, if any, payable to the petitioner along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order. (S.R.KRISHNA KUMAR) JUDGE