M/S Adama INDIA PVT. LTD vs. The Union Of INDIA

Original PDF →
WP/105167/2025HC KarnatakaGSTCNR KAHC02015834202520 August 2025Bench: SURAJ GOVINDARAJ6 pages
For Petitioner: DR. T. RAMESH BABU., ADVOCATE FOR SRI. VINAYKUMAR M SHETTY, ADVOCATEFor Respondent: SRI. M.B. KANAVI., CGSC FOR R1; SRI. SHARAD V. MAGADUM., AGA FOR R2 & R3

No AI summary yet for this judgment.

Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC-D:10571 WP No. 105167 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 20TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 105167 OF 2025 (T-KST) BETWEEN: M/S ADAMA INDIA PVT. LTD PLOT NO.D.S-13, KNOWLEDGE PARH SY. NO.542/2, GENOVO VALLY, TURKA PALLI, SHAMEER PETH, MEDCHAL, VENKATA RAMA KRISHNA HARI, S/O. HARINARTHINI VENKATAYYA, AGE. 44, OCC. SERVICE FINANCIAL CONTROLLER, NO.74, BASHA COMPOUND, BOMMANAHAL ROAD, BALLARI-583101, DIST. BALLARI. …PETITIONER (BY DR. T. RAMESH BABU., ADVOCATE FOR SRI. VINAYKUMAR M SHETTY,ADVOCATE) AND: 1. THE UNION OF INDIA REP. BY ITS SECRETARY MINISTRY OF FINANCE, NORTH BLOCK, DELHI-1. 2. THE STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE, VIKAS SOUDHA, BENGALURU-1 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-490, Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:10571 WP No. 105167 of 2025 VANIJYA TERIGHE BHAVAN, NO.872/873, 6TH CROSS, 2ND STAGE, RAGHAVENDRA COLONY, ANANTHAPUR ROAD, BALLARI-583103 …RESPONDENTS (BY SRI. M.B. KANAVI., CGSC FOR R1; SRI. SHARAD V. MAGADUM., AGA FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE IMPUGNED ORDER-IN- ORIGINAL PASSED BY RESPONDENT NO.3 BEARING NO.ACCT/LGSTO-490/BLI/SEC-73 ORDER/2024-25 DATED 20.02.2025, AS PER ANNEXURE-A, AND ORDER PASSED UNDER SEC 73 BEARING REFERENCE NO.ZD290225094946R DATED 24.02.2025 ISSUED BY RESPONDENT NO.3 AS PER ANNEXURE-B AND THE COMMUNICATION BEARING REFERENCE NO.ZD290225094946R DATED 24.02.2025 ISSUED BY 3RD RESPONDENT NO.3 U/R 142 (5) OF CGST RULES 2017 IN FORM GST DRC-07 DATED 24.02.2025 IMPOSING TAX OF RS.99,06,703/- UNDER IGST ACT, 2017 WITH INTEREST OF RS.86,27,788 AND PENALTY OF RS.9,90,970 TOTAL OF RS.1,95,25,461, AS PER ANNEXURE-C AND ETC. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:10571 WP No. 105167 of 2025

ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)

1.

The petitioner is before this Court seeking for the following reliefs: i. Issue a writ in the nature of certiorari quashing the impugned order-in-original passed by Respondent No.3 bearing No. ACCT/LGSTO-490/BLI/Sec-73 order/2024-25 dated 20.02.2025, as per Annexure-A and order passed under Sec. 73 bearing Reference No.ZD290225094946R dated 24.02.2025 issued by R3 as per Annexure-B and the communication bearing Reference No. ZD290225091946R dated 24.02.2025 issued by R3 U/R 142 (5) of CGST Rules 2017 in Form GST DRC- 09 dated 24.02.2025 imposing Tax of Rs. 99,06,703/- under IGST Act, 2017 with interest of Rs. 86,27,788 and penalty of Rs.9,90,970 total of Rs.1,95,25,461/- as per Annexure-C. ii. Issue a writ in the nature of mandamus, the Hon’ble Court may kindly be pleased to direct 3rd respondent to adjust the excess tax paid i.e., Rs.49,53,335/- and Rs.49.53,335/- under CGST and SGST to the tax demanded under the IGST as per the Annexure A, B and C and not to impose the interest and penalty to petitioner in the interest of justice and equity. iii. Pass such other orders as this Hon’ble Court deems fit in the facts and circumstances of the case, including costs, in the interest of justice and equity. HC-KAR NC: 2025:KHC-D:10571

2.

After arguing for some time, learned counsel for the petitioner submits that irrespective of the orders passed against the petitioner, the petitioner having made payment of excess tax of Rs.49,53,335/- on account of CGST and a like amount as SGST, the said amount being available with respondent-authorities, same could be adjusted as regards the claims made against the petitioner.

3.

A perusal of the documents indicates that the above amounts have been paid, it would, in my considered opinion, be required for the respondent-authorities to verify if there is any such excess payment which have been made and if such excess payment is made, to adjust the same as regards the claims now made by the respondent-authorities.

4.

In that view of the matter, until orders are passed on the request for adjustment, as indicated supra, the respondents would not be entitled to continue the proceedings in terms Annexure-A, B & C. HC-KAR NC: 2025:KHC-D:10571

5.

Hence, I pass the following:

ORDER i. The writ petition is allowed.

ii. The order in original bearing No.ACCT/LGSTO- 490/BLI/Sec-73 order/2024-25 dated 20.02.2025 at Annexure-A is set-aside.

iii. The petitioner is permitted to place on record said documents as are available with the petitioner to establish the excess payment made and available with respondent-authorities in reply to Annexures-B & C, which reply shall be considered and necessary orders passed by respondents within a period of four weeks from date of receipt of reply, which reply to be submitted within ten days from today.

iv. On reconciliation, in the event of excess amount being found, respondents are directed to adjust the excess amounts towards the claim against the petitioner irrespective of whether it is excess in terms of CGST or SGST. HC-KAR NC: 2025:KHC-D:10571 v. It is made clear, if no excess amount is available, respondents are at liberty to pass necessary orders on the said show cause notice. (SURAJ GOVINDARAJ) JUDGE

LN List No.: 2 Sl No.: 49

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.