Kanish Sri Sri Sri Mal vs. The State Of Karnataka
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Cause title — parties, addresses and appearances
REVERSING AND SETTING ASIDE THE PENALTY ORDER NO.GCE-11/2024-25 DATED 16.10.2024 PASSED BY THE SECOND RESPONDENT, THE COMMERCIAL TAX OFFICER, VIGILANCE 7, GST DEPARTMENT, KORAMANGALA, BENGALURU, UNDER SECTION 129(1)(b) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (HEREINAFTER REFERRED TO AS THE CGST ACT) AND KARNATAKA GOODS AND SERVICES TAX ACT, 2017 (HEREINAFTER REFERRED TO AS THE KGST ACT), LEVYING A PENALTY OF RS. 8,93,958/- (RUPEES EIGHT LAKHS NINETY-THREE THOUSAND NINE HUNDRED FIFTY-EIGHT ONLY). WHICH IS PRODUCED AT ANNEXURE-A AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: HC-KAR NC: 2025:KHC:32575 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA
ORAL ORDER
The petitioner is before this Court, seeking the following prayer: "a. Pass an appropriate Writ, Order or Direction reversing and setting-aside the Penalty Order No. GCE-11/2024-25 dated 16.10.2024 passed by the Second Respondent, the Commercial Tax Officer, Vigilance 7, GST Department, Koramangala, Bengaluru, under Section 129(1)(b) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'the CGST Act") and Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as "the KGST Act"), levying a penalty of Rs.8,93,958/- (Rupees Eight Lakhs Ninety-Three Thousand Nine Hundred Fifty-Eight Only), which is produced at ANNEXURE-"A". AND/OR b. Pass an appropriate Writ, Order or Diretion, declaring that the penal provision under Section 129(1)(b) of the CGST Act, 2017 & KGST Act,2017 is unconstitutional, illegal, ultra-virus and is liable to be struck down. AND/OR c. Pass an appropriate Writ, Order or Direction, directing the Respondents to forthwith release and return the seized gold to the Petitioner, which was unlawfully confiscated under the impugned proceedings; HC-KAR NC: 2025:KHC:32575 AND/OR d. Such other order/s as this Hon'ble Court may deem fit, proper and necessary, in the ends of justice."
Heard Sri. Ajay Kadkol T., learned counsel appearing for the petitioner, Smt. Jyoti M. Maradi, learned HCGP appearing for the respondents and have perused the material on record.
The goods of the petitioner fine gold bars carrying being ferried in vehicle bearing No. KA-50/MB-8689 was intercepted by the GST authorities. The GST authorities, on such interception, finding the gold bars in the possession of the logistics person, issued a notice to the driver/the logistic person, who was in-charge of the said conveyance. The contention is that no notice was served upon the petitioner. Therefore, he could not appear before the concerned authority, who has now drawn proceedings against the petitioner.
Learned counsel appearing for the petitioner submits that, if an opportunity is granted, he would now appear before respondent No.2 and participate in the proceedings. HC-KAR NC: 2025:KHC:32575
Learned HCGP appearing for the respondents submits that the petitioner may be directed to appear on a particular date and the proceedings would be drawn after affording all opportunity to the petitioner and appropriate orders would be passed.
In the light of the said submission, I deem it appropriate to obliterate the order that is passed against the petitioner and direct the petitioner to appear before respondent No.2 on 01.09.2025 at 2:30 p.m. and participate in the proceedings.
It is open to respondent No.2 to regulate its procedure and take the proceedings to its logical conclusion by affording an opportunity to the petitioner.
In the light of aforesaid circumstances and as a matter of form, the order dated 16.10.2024 in Penalty Order No.GCE-11/2024-25 passed by respondent No.2, stands obliterated. HC-KAR NC: 2025:KHC:32575 With the aforesaid observation, the petition stands disposed. (M.NAGAPRASANNA) JUDGE
SJK List No.: 1 Sl No.: 14 CT:SG
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.