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M/S Nl Tile Art PVT LTD. vs. Commissioner Of Commercial Taxes, Karnataka

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WP/20196/2025HC KarnatakaGSTCNR KAHC01043799202523 July 2025Bench: SURAJ GOVINDARAJ6 pages
For Petitioner: SRI. THIRUMALESH M., ADVOCATEFor Respondent: SMT. JYOTI.M.MARADI, HCGP FOR R1 TO R3

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:28053 WP No. 20196 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. 20196 OF 2025 (T-RES) BETWEEN: M/S NL TILE ART PVT LTD., SY. NO. 21/1, BETTADASANAPURA, BEGUR-2, BENGALURU 560 068, A PRIVATE LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956, REPRESENTED BY ITS DIRECTOR, SRI. B.S. NAVEEN KUMAR, AGED ABOUT 43 YEARS, S/O SRI. SRINIVAS BIGVARA NAGAPPA. …PETITIONER (BY SRI. THIRUMALESH M.,ADVOCATE) AND: 1. COMMISSIONER OF COMMERCIAL TAXES, KARNATAKA, VANIJYA THERIGE KARYALAYA, GANDHINAGAR, BENGALURU - 560 009. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-016, 6TH FLOOR, TTMC BUILDING, KORAMANGALA, BENGALURU-560047. ACCTLGSTO-16-bng@ctd.ka.gov.in 3. JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-2, Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28053 WP No. 20196 of 2025 2ND FLOOR, TTMC BUILDING, SHANTHINAGAR, BENGALURU - 560 027. …RESPONDENTS (BY SMT. JYOTI.M.MARADI, HCGP FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR A DECLARATION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE ADJUDICATION ORDER DATED 19-07-2024 PASSED BY THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-016, BENGALURU, THE SECOND RESPONDENT HEREIN, IN NO. ACCT/LGSTO-16/DRC-07/2024- 25, UNDER SECTIONS 73(10), 73(9), 50 AND 122 OF THE KGST ACT, 2017 AND CGST ACT, 2017 FOR THE TAX PERIODS APRIL 2019 TO MARCH 2020, IN THE CASE OF THE PETITIONER - ANNEXURE – C. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1.

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

i. Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Adjudication Order dated 19-07-2024 passed by the Assistant Commissioner of Commercial Taxes, LGSTO-016, Bengaluru, the second respondent herein, in No. ACCT/LGSTO-16/DRC-07/2024-25, under sections 73(10), 73(9), 50 & 122 of the KGST Act, 2017 and CGST Act, 2017 for the tax HC-KAR NC: 2025:KHC:28053 periods April 2019 to March 2020, in the case of the petitioner - ANNEXURE – C

ii. issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the summary of Order under section 73(9) in Form GST DRC-07 dated 20-07-2024 passed by the Assistant Commissioner of Commercial Taxes, LGSTO-016, Bengaluru, the second respondent herein, in No. ZD290724066834U under sections 73(10), 73(9), 50 & 122 of the KGST Act, 2017 and CGST Act, 2017 for the tax periods April 2019 to March 2020, in the case of the petitioner - ANNEXURE - C;

iii. issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Order dated 21-02-2025 passed by the Joint Commissioner of Commercial Taxes, (Appeals)-4, Bengaluru, the third respondent herein, in No. AD2901250403286 and ZD2902250848811, under section 107 of the KGST Act, 2017 and CGST Act, 2017 for the tax periods April 2019 to March 2020, in the case of the petitioner - ANNEXURE - D;

iv. and grant such other relief or reliefs as this Hon'ble Court may deem fit in the circumstances of the case, in the interest of justice.

2.

The grievance of the petitioner is that without looking at the annual returns which have been filed for the year 2018-19 and 2019-20, the impugned order has been passed by only considering GSTR-2A and GSTR-3B.

3.

The submission of Sri.Thirumalesh, learned counsel for the petitioner is that the ITC was claimed in the Financial HC-KAR NC: 2025:KHC:28053 year 2018-19 to an extent of Rs.9,97,050/- and Rs.46,750/- which had been reversed by filing DRC-03 in the year 2019-20 insofar as Rs.4,69,447/- is concerned and the ITC claimed in the Financial Year 2019-20 not having been claimed, the same was claimed in Financial Year 2020-21. He submits that if all these factors are taken into consideration, it would be seen that there is no excess ITC which has been claimed by the petitioner. The respondents have only taken into consideration GSTR-2A and GSTR-3B without taking into consideration DRC-03 and annual returns, has arrived at a wrong

conclusion and wrong calculation.

4.

All the above submissions of learned counsel for the petitioner are substantiated by the documents which have been produced, it was but required for the respondents to have considered the annual returns, tabulated the ITC claims over the various years, as also reversal of the ITC which have been made by filing DRC-03. This not having been done has resulted in the respondents passing an order on the ground that the petitioner has claimed excess ITC when the petitioner apparently has not. HC-KAR NC: 2025:KHC:28053

5.

These matters requiring factual re-appreciation, I am of the considered opinion that the impugned orders not being sustainable, the matter would require to be remitted to respondent No.2 for fresh consideration. As such, I pass the following: ORDER i. The writ petition is allowed. ii. The adjudication order dated 19.07.2024 passed in No.ACCT/LGSTO-16/DRC-07/2024-25 and order dated 20.07.2024 in No.ZD290724066834U at Annexure-C and consequently, order dated 21.02.2025 passed in No.AD2901250403286 and ZD2902250848811 at Annexure-D are set- aside. iii. The matter is remitted for reconsideration at the stage of reply to the show cause notice. iv. Since, the present order is passed in the presence of both the counsels, the petitioner shall appear before respondent No.2 without HC-KAR NC: 2025:KHC:28053 requirement of any further notice on 21.8.2025 and submits his reply to the show- cause notice. v. The said reply shall be considered and disposed in accordance with directions issued in the case of M/s Karnataka Chinmaya Seva Trust -v- Joint Commissioner of Central Tax

[W.P. No.11154/2023 dated 3.07.2024] (SURAJ GOVINDARAJ) JUDGE

LN List No.: 1 Sl No.: 77

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.