M/S Ghs Traders vs. The Union Of INDIA

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WP/6657/2025HC KarnatakaGSTCNR KAHC01012634202514 November 2025Bench: S.R.KRISHNA KUMAR7 pages
For Petitioner: SRI. GANESH V. SHANDAGE, ADVOCATEFor Respondent: SRI. K. S. BHEEMAIAH, ADVOCATE/CGC FOR R1; SRI. SUSHAL TIWARI, ADVOCATE FOR R2 TO R5; SRI. K. HEMA KUMAR, AGA FOR R5

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:47537 WP No. 6657 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 6657 OF 2025 (T-RES) BETWEEN: M/S GHS TRADERS, A PROPRIETARY CONCERN, REPRESENTED HEREIN BY ITS PROPRIETOR SHRI. MOHAMMED GHOUSE RESIDING AT, 1ST CROSS, K R PURAM ROAD, SHIVAMOGGA – 577 201, AADHAR: 291090093312 AGED ABOUT 47 YEARS HAVING OFFICE ADDRESS AT, GROUND FLOOR SHOP NO. 3, MATAN PREMISES H NO 169, SHIVAMOGGA TRITHAHALLI MAIN ROAD, NEAR LINGAPUR BUS STAND, MANDAGADDE, LINGAPUR, SHIVAMOGGA – 577 220 …PETITIONER (BY SRI. GANESH V. SHANDAGE, ADVOCATE) AND: 1. THE UNION OF INDIA REPRESENTED HEREIN BY THE SECRETARY DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI – 110 001 2. CENTRAL BOARD OF INDIRECT TAXED AND CUSTOMS REPRESENTED HEREIN BY – THE CHAIRMAN, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI, DELHI – 110 001 Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:47537 WP No. 6657 of 2025 3. THE PRINCIPAL COMMISSIONER OF CENTRAL TAXES, THIRD FLOOR, GST BHAVAN, S1 AND S2, SIDDHARTHA NAGAR VINAYA MARGA, VINAYA MARGA, SIDDHARTHA LAYOUT, MYSURU, KARNATAKA – 570 011 4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, SHIVAMOGGA DIVISION, VI CROSS, ASHWATH NAGAR, OFF SAVALANGA ROAD SHIVAMOGGA – 577 204 5. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT), BESIDE TEHSIL OFFICE, BHAGAT SINGH CHOWK, BIDAR, KARNATAKA – 585 401 …RESPONDENTS (BY SRI. K. S. BHEEMAIAH, ADVOCATE/CGC FOR R1; SRI. SUSHAL TIWARI, ADVOCATE FOR R2 TO R5; SRI. K. HEMA KUMAR, AGA FOR R5) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED 4 (FOUR) DEFICIENCY NOTES IN FORM GST RFD-03 BEARING REFERENCE NO.AA2910240182699 DATED 23.10.2024, (ARN)AA291024079887M DATED 13.11.2024, (ARN)AA291124045052N DATED 03.12.2024 AND ZD290125025844C DATED 08.01.2025, ISSUED BY RESPONDENT NO. 04 UNDER RULE 90(3) OF CENTRAL GOODS AND SERVICES RULES, 2017 (ANNEXURE B1, ANNEXURE B2, ANNEXURE B3 AND ANNEXURE B4 RESPECTIVELY) AND ETC., THIS PETITION, COMING ON FOR ORDERS, 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 such other Writ, Order or direction in the nature of a Writ of Certiorari, quashing the impugned 4 (Four) deficiency notes in FORM GST RFD-03 bearing Reference No:AA2910240182699 HC-KAR NC: 2025:KHC:47537 dated 23.10.2024 (ARN)AA291024079887M dated 13.11.2024 (ARN)AA291124045052N dated 03.12.2024 and ZD290125025844C dated 08.01.2025, issued by Respondent No.04 under Rule 90(3) of Central Goods and Services Rules, 2017 (Annexure-B1, Annexure-B2, Annexure-B3 and Annexure-B4 respectively); b) Issue a Writ of Mandamus, or such other Writ, Order or direction in the nature of a Writ of Mandamus, to Respondent No.04, to issue acknowledgment in FORM GST RFD-02 in accordance with law against the fresh Refund application on the directions from this Hon’ble court to be submitted by Petitioner in FORM GST RFD-01; and c) Pass such other or further orders as this Honourable Court may deem fit and proper in the facts and circumstances of the case, and in the interests of justice and equity, including the costs of this writ petition. For which act of kindness, the Petitioner shall as in duty bound, ever pray.”

2.

Heard learned counsel for the petitioner and learned CGC for respondent No.1, learned counsel for respondent Nos.2 to 5 and learned AGA for respondent No.6 and perused the material on record. HC-KAR NC: 2025:KHC:47537

3.

Learned counsel for the petitioner submits that despite repeated refund applications at Annexure- A1 dated 08.10.2024, A2 dated 29.10.2024, A3 dated 18.11.2024 and A4 dated 05.12.2024, the respondents have repeatedly issued deficiency memos without considering the refund request of the petitioner, who is before this Court by way of the present petition.

4.

It is submitted that the petitioner is ready and willing to file a fresh/new refund application and the same may be construed or treated as having been filed from the date of the first refund application dated 08.10.2024 and the fresh/new refund application to be filed by the petitioner may be directed to be considered as if the same was filed on 08.10.2024 on which date the petitioner filed the first refund application and to dispose of and pass appropriate orders on the fresh/new refund application to be filed by the petitioner including the claim for interest put forth by the petitioner.

5.

Per contra, learned counsel for the respondents on instructions submits that if the petitioner files a fresh/new refund application along with supporting documents, the concerned respondents shall consider the refund application in accordance with law without reference to the period of limitation and by treating HC-KAR NC: 2025:KHC:47537 the fresh/new application as if it was filed on 08.10.2024 which was the date of filing the first refund application and take appropriate decision and pass appropriate orders in accordance with law.

6.

In view of the aforesaid facts and circumstances, I deem it just and appropriate to dispose of this petition by issuing certain directions to the respondents.

7.

In the result, I pass the following: ORDER i) The petition is hereby disposed of. ii) The petitioner is reserved liberty to file a fresh/new refund application along with relevant documents within a period of 6 weeks from the date of receipt of a copy of this order. iii) It is further directed that pursuant to the petitioner filing fresh/new refund application along with relevant documents before the concerned respondent, the concerned respondents shall construe/consider/treat the fresh/new refund application to be filed by the petitioner HC-KAR NC: 2025:KHC:47537 as if the same was filed on 08.10.2024 on which date the first refund application was filed by the petitioner and by excluding the entire period from 08.10.2024 till the date of filing the fresh/new refund application for the purpose of limitation under Section 54 of the CGST Act. iv) Along with fresh/new refund application, the liberty is reserved in favour of the petitioner to file pleadings/documents etc., in support of his claim. v) Pursuant to the petitioner filing the fresh/new refund application, the concerned respondent shall consider the refund claim of the petitioner and pass appropriate orders together with the claim of interest put forth by the petitioner in accordance with the provisions contained in Section 54 of the CGST Act read with Rule 89 of the CGST Rules as expeditiously as possible within a period of three months from the date of petitioner filing fresh/new refund application. vi) Immediately upon the petitioner filing a fresh/new refund application as stated supra, the concerned HC-KAR NC: 2025:KHC:47537 respondent shall issue an acknowledgment in RFD-02 to the petitioner and proceed further in accordance with law. vii) All rival contentions and all aspects of the matter except limitation are kept open and no opinion is expressed on the same. viii) Liberty is also reserved in favour of the petitioner to take recourse to such other remedies as available in law including approaching this Court, subsequently, if the occasion, so arises. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 2 Sl No.: 29

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.