M/S Pragathi Enterprise vs. The Assistant Commissioner Of Commercial Taxes

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WP/2160/2025HC KarnatakaGSTCNR KAHC01003114202523 July 2025Bench: SURAJ GOVINDARAJ5 pages
For Petitioner: Smt. LOCHANA S BABU., ADVOCATEFor Respondent: SRI.K.HEMAKUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:29330 WP No. 2160 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 2160 OF 2025 (T-RES) BETWEEN: M/S PRAGATHI ENTERPRISE A SOLE PROPRIETORSHIP FIRM A-103, ITTINA ABHA, MUNEKOLALA, MARATHALLI, BENGALURU – 560 037 REP. BY ITS PROPRIETOR SHRI. RAJU PRADEEP KUMAR …PETITIONER (BY Smt. LOCHANA S BABU.,ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-15, 2ND FLOOR, A BLOCK, VTK-2, RAJENDRA NAGAR, KORAMANGALA, BENGALURU – 560 047. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS-4) NO. 640, 6TH FLOOR, 80 FEET ROAD, BMTC TTMC BUILDING, KORAMANGALA, BENGALURU – 560 095. 3. THE STATE OF KARNATAKA THROUGH THE PRINCIPAL SECRETARY FINANCE DEPARTMENT VIDHANA SOUDHA, BENGALURU – 560 001 …RESPONDENTS (BY SRI.K.HEMAKUMAR, AGA) Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:29330 WP No. 2160 of 2025 THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 21.12.2023 BEARING NO. ACCT(P).LGSTO-15/DRC- 01/2023-24, ISSUED BY THE 1 RESPONDENT (ANNEXURE -A) AND QUASHING THE IMPUGNED ORDER-IN- ORIGINAL DATED 21.03.2024 BEARING NO. ACCT(P)/LGSTO-015/ DRC.07/2023-24 PASSED BY THE 1ST RESPONDENT (ANNEXURE. B) ANDS ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1.

Learned AGA accepts notice for respondents.

2.

The petitioner is before this Court seeking for the following reliefs:

i. “Issue a Writ of Certiorari quashing the impugned Show Cause Notice dated 21.12.2023 Bearing No.ACCT(P).LGSTO-15/DRC- 01/2023-24, issued by the 1st Respondent (Annexure -A)

ii. Issue a Writ of Certiorari quashing the impugned Order-In-Original dated 21.03.2024 Bearing No. ACCT(P)/LGSTO-015/ DRC.07/2023-24 passed by the 1st Respondent (Annexure-B)

iii. Issue a Writ of Certiorari quashing the impugned order in APL-2 dated 05.12.2024 Bearing No.ZD291224018358B, passed by the 2nd Respondent (Annexure - C) and HC-KAR NC: 2025:KHC:29330 iv. Declare that the actions of the Respondents No.1 in attaching the Bank Account of the petitioner is illegal, unsustainable and in violation of provisions of CGST/KGST Act, 2017 and v. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that the impugned proceedings under Section 73 of the CGST ACT/KGST ACT, initiated in light of the notification issued under Section 168A of the CGST Act/KGST Act, is without juri iction, and vi. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that there is no tax liability payable by the Petitioner and no consequent interest or penalty and vii. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that service under SEC. 169 of the CGST Act/KGST Act is proper only when it tantamounts to communication and not merely service and viii. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that uploading of Notice(s), Order(s) Communication(s) on the Additional Notice section on the GST portal does not amount to proper service under SEC. 169 of the CGST Act/KGST Act and or ix. Direct the Respondents to refund the deposit of 10 % remitted by the Petitioner and.

x. To issue a Order(s), Directions, Writ(s) or any other relief as this Hon’ble court deems it fit and proper in the facts and circumstance of the case in the interest of justice and equity.

3.

Learned counsel for the petitioner submits that the lis in the above matter is covered by the Judgment of the HC-KAR NC: 2025:KHC:29330 Coordinate Bench of this Court passed in M/s.Eternity Projects -v- The Deputy Commissioner of Commercial taxes (Audit)-3.2 and others1 and submits that the impugned order has been passed without issuing a notice and or providing an opportunity of hearing to the petitioner.

4.

In that view of the matter, I pass the following: ORDER i. The impugned order No.ACCT(P)/LGSTO- 015/DRC.01/2023-24 dated 21.12.2023 at Annexure-A passed by respondent No.1 is set aside. ii. The impugned Order-in-original dated 21.03.2024 bearing No.ACCT(p)/LGSTO- 015/DRC.07/2023-24 passed by respondent No.1 at Annexure-B is set-aside. iii. The impugned Order in APL-2 dated 5.12.2024 bearing No.ZD291224018358B at Annexure-C passed by respondent No.2 is set- aside.

1 WP No.30307/2024 DD 19.11.2024 HC-KAR NC: 2025:KHC:29330 iv. The GST registration of the petitioner shall stand restored. v. The matter is relegated to the status of show cause notice issued to the petitioner and the petitioner is directed to appear before respondent No.1 on 11.08.2025 at 2.30 p.m. without further notice. vi. With the above observations, the petition stands disposed of. (SURAJ GOVINDARAJ) JUDGE

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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.