M/S Virtusa Consulting Services Private Limited vs. Union Of INDIA
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:-
“i. Issue a writ of certiorari or any other writ as the Hon’ble High Court may deem fit and quash the following: ANNEXURE ‘H’ Impugned appellate order dated 28.07.2023 passed by the Respondent HC-KAR NC: 2025:KHC:43143 No.3 under Section 107(11) of the Karnataka Goods and Services Taxes Act, 2017 read with Central Goods and Services Taxes Act, 2017 bearing GST A.P.77/2022-23. ANNEXURE ‘F’ Impugned rejection order dated 28.10.2022 in Form GST-RFD-06 passed by the Respondent No.4 under Section 54 of the Karnataka Goods and Services Taxes Act, 2017 read with Central Goods and Services Taxes Act, 2017. ANNEXURE ‘D’ Impugned show cause notice dated 21.09.2022 in Form GST-RFD-08 issued by Respondent No.4. ii. To issue the writ of mandamus or any other appropriate writ in the nature of mandamus writ, order or direction directing the respondents to disburse the refund of IGST of Rs.93,58,333/- along with applicable interest. iii. To issue any other order(s), directions(s), writ(s) or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;” HC-KAR NC: 2025:KHC:43143
Heard learned counsel for the petitioner, learned CGC for respondent No.1 and learned AGA for respondent Nos.2 to 4 and perused the material on record.
A perusal of the material on record will indicate that aggrieved by the order dated 28.10.2022 passed by respondent No.4, petitioner approached respondent No.3 – appellate authority by way of an appeal, which was also dismissed vide final order dated 28.07.2023. Aggrieved by the impugned orders at Annexure- H dated 28.07.2023 passed by respondent No.3, Annexure-F dated 28.10.2022 and impugned show cause notice dated 21.09.2022, the petitioner is before this Court by way of the present petition.
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 has invited my attention to the impugned order at Annexure-H dated 28.07.2023 in order to contend that the various contentions urged by the petitioner have not been considered by the appellate authority, which has proceeded to dismiss the appeal by passing laconic, cryptic, unreasoned, non speaking order with absolutely no application of mind. HC-KAR NC: 2025:KHC:43143
In this context, it is pertinent to note that the said order of the appellate authority reads as under: “HEARING PROCEEDINGS
Sri Bharath Kumar, authorized representative of M/s. Virusa Consulting Services Private Limited. No: 49. 1 Main Road, 3rd Phase, Sarakki Industrial Layout, J.P.Nagar, Bangalore. 78, GSTIN No. 29AACCV6797L2ZB has appeared for hearing of the case on 08-05-2023 at 11.20Am.
The authorized representative has re-iterated the grounds of appeal and requested consider our grounds of appeal. The authorized representative explained the issues involved in the appeal main is restriction of input tax credit on the Capital goods, Rental and leasing services restriction of ITC for the utilized in the furtherance of the business. The authorized representative has requested to submit the addl. grounds of appeal on or before 15/05/2023. The appellant has not produced documents for verification till date.
Heard the arguments of the pvt. Ltd., company perused the connected records, documents furnished and the grounds of appeal. The reasons adduced by the ACCT for rejection of refund claimed by the appellant are valid reasons and based on the Circulars HC-KAR NC: 2025:KHC:43143 issued in this regard. The ACCT has restricted the input on turnover of capital goods and not for furtherance of business as per the documents and the figure available in the GST portal. The ACCT has rightly rejected the claim.
Under the prevailing circumstances the action of the ACCT in rejecting claim of refund due to non- compliance with the procedure and conditions stipulated in the relevant Circulars is found to be legally correct. According I proceed to make the following
ORDER
This appeal is hereby dismissed.”
The aforesaid order is clearly laconic, cryptic, unreasoned, non speaking order with absolutely no application of mind which deserves to be quashed and the matter be remitted back for reconsideration afresh in accordance with law.
In the result, I pass the following: ORDER
i)
The appeal is hereby allowed. ii) Impugned orders at Annexure-H dated 28.07.2023 passed by respondent No.3 under Section 107(11) of the KGST/CGST, 2017 is hereby set aside. HC-KAR NC: 2025:KHC:43143 iii) Matter is remitted back to the stage of petitioner submitting reply to Show Cause Notice dated 21.09.2022 at Annexure-D and to proceed further in accordance with law. iv) The petitioner is directed to appear before respondent No.4 on 17.11.2025 without awaiting further notice from respondent No.4. v) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.4, who shall consider the same and pass appropriate orders in accordance with law within a period of three months from the date of receipt of copy of this order. vi) All rival contentions are kept open and no opinion is expressed on the same. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 0
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.