Gopalan Enterprises (Inida) PVT LTD vs. The Joint Commissioner Of - Karnataka High Court, 12 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:47369 WP No. 12644 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12644 OF 2025 (T-RES) BETWEEN: GOPALAN ENTERPRISES (INIDA) PVT. LTD. A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.5, RICHMOND ROAD BENGALURU – 560 025 REPRESENTED HEREIN BY ITS DIRECTOR, MR. C. GOPALAN …PETITIONER (BY SRI. RAKSHITH B. BHARADWAJ, FOR SRI. SANDEEP HUILGOL, ADVOCATE) AND: 1. THE JOINT COMMISSIONER OF CENTRAL TAX, BENGALURU EAST COMMISSIONERATE, 4TH FLOOR, TTMC/BMTC BUILDING OLD AIRPORT ROAD, DOMLUR BENGALURU – 560 071 2. THE SUPERINTENDENT OF CENTRAL TAX, EAST DIVISION-1, BENGALURU 6TH FLOOR, TTMC/BMTC BUILDING OLD AIRPORT ROAD, DOMLUR BENGALURU – 560 071. 3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, EAST DIVISION-1, BENGALURU 6TH FLOOR, TTMC/BMTC BUILDING OLD AIRPORT ROAD, DOMLUR BENGALURU – 560 071. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:47369 WP No. 12644 of 2025 4. THE PRINCIPAL CHIEF COMMISSIONER OF CENTRAL TAX, GST COMMISSIONERATE BENGALURU EAST 4TH FLOOR, TTMC/BMTC BUILDING OLD AIRPORT ROAD, DOMLUR BENGALURU – 560 071. 5. CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS REPRESENTED HEREIN BY THE CHAIRMAN DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI – 110 001. 6. GOODS AND SERVICES TAX COUNCIL REPRESENTED HEREIN BY THE CHAIRPERSON 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING JANPATH ROAD, CONNAUGHT PLACE NEW DELHI – 110 001. 7. THE UNION OF INDIA REPRESENTED HEREIN BY THE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI – 110 001. …RESPONDENTS (BY SRI. JEEVAN J. NEERALAGI, FOR R-1 TO R6; SRI. POOJAPPA, CGC FOR R7) THIS W.P. IS FILED UNDER ARTICLE 226 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 20.03.2024 BEARING OIO NO. 21/2024 JC-1 AND DIN NO. 202403570000003303C1 PASSED BY THE 1ST RESPONDENT UNDER SECTION 73 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017, FOR THE TAX PERIODS APRIL 2018 TO MARCH 2019 (ANNEXURE-A) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR - 3 - HC-KAR NC: 2025:KHC:47369 WP No. 12644 of 2025

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:- “(i) Quashing the impugned order dated 20.03.2024 bearing OiO No.21/2024 JC-1 and DIN No.202403570000003303C1 passed by the 1st Respondent under Section 73 of the Central Goods and Services Tax Act, 2017, for the tax periods April 2018 to March 2019 (Annexure ‘A’); (ii) Declaring that since the charges collected by the Petitioner from its customers and lessees supply of electricity and water by third-party suppliers are at actuals when compared with the consolidated amounts charged on it by the said third-party suppliers, it is deemed to be acting in the capacity of a pure agent in terms of Para 3.3 of the Circular No.206/08/2023-GST dated 31.10.2023 (Annexure ‘B’) issued by the 7th Respondent through the 5th Respondent, and that the said supplies by third-party suppliers, along with the Petitioner’s supply of renting of immovable property, thus do not constitute a composite supply in terms of Section 8 of the GST Acts effected by the Petitioner and, hence, the said amounts collected by it are not liable to tax under the provisions of the CGST and KGST Acts, 2017; and (iii) Pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interest of justice and equity.” HC-KAR NC: 2025:KHC:47369

Heard learned counsel for both parties and learned counsel for the respondent and perused the material on record.

Learned counsel for the petitioner invited my attention to the Circular No.206/08/2023-GST dated 31.10.2023 at Annexure-B issued by the respondents in order to point out that Clause No.3.2 and 3.3 and of the said Circular having not been considered in their proper perspective by respondent No.1, while passing the impugned order and as such, the impugned order may be set aside and the matter be remitted back to respondent No.1 for reconsideration afresh, in accordance with law.

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.

A perusal of the material on record will indicate that while dealing with the said contention, will indicate that the petitioner had put forth several contentions as regards the said Circular and applicability of Clause 3.3 to the petitioner herein. The said contention has not been considered by respondent No.1 in its proper perspective, has also not considered the various other HC-KAR NC: 2025:KHC:47369 contentions urged by the petitioner. Under these circumstances, without expressing any opinion on the merits/demerits of the rival contentions, the matter be remitted back to the concerned respondent for reconsideration afresh in accordance with law.

In the result, I pass the following: ORDER (i) The petition is allowed. (ii) The impugned order Annexure-A dated 20.03.2024 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 bearing in mind Clause-3.3 of the said Circular dated 31.10.2023 and in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit pleadings, documents etc., before respondent No.1, who shall consider the same and provide sufficient opportunity and proceed further, in accordance with law. (S.R.KRISHNA KUMAR) JUDGE BMC: List No.: 2 Sl No.: 0