Applicate It Solutions PVT LTD vs. Union Of INDIA
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Cause title — parties, addresses and appearances
ORAL ORDER
The petitioner is before this Court seeking for the reliefs: i. Issue a Writ of Certiorari, or a Writ in the nature of Certiorari, or any other appropriate Writ, Order, or direction, quashing the Impugned order bearing No. 21/2024-25 dated 30.04.2024, passed by the HC-KAR NC: 2025:KHC:25182 Superintendent of Central Excise and Central Tax, AND-S Range, Division 5, Bengaluru North Commissionerate (Annexure-B), for being passed without juri iction, in violation on the principles of natural justice and provisions of Section 74 of the CGST Act;
ii. Issue a Writ of Certiorari, or a Writ in the nature of Certiorari, or any other appropriate Writ, Order, or direction, quashing the Impugned Notice No. GEXCOM/TECH/MISC/609/2025-TECH-CGST-DIV- 5-NORTH-COMMRTE-BENGALURU(N) dated 24.02.2025 issued in Form GST DRC-13, issued by the Assistant Commissioner of Central Tax, North Commissionerate, Bengaluru (Annexure-C), as the same is based on the Impugned Order, which has been passed without juri iction;
iii. Issue a Writ of Mandamus, or a Writ in the nature of Mandamus, or any other appropriate Writ, Order, or direction, directing the Assistant Commissioner of Central Tax, North Commissionerate, Bengaluru to refund the amount, i.e., Rs. 20,32,214/-, so debited from the Petitioner's account, along with interest, without asking the Petitioner to file a refund application;
iv. For such further and other reliefs, as this Hon'ble Court may deem fit and proper in the nature and circumstances of the case.
The grievance of the petitioner is that the impugned order is an ex parte order which has been passed without a notice having been served on the petitioner, depriving the petitioner of his right to place his say on record before respondent No.3. HC-KAR NC: 2025:KHC:25182
The submission of the learned counsel for the petitioner is that pursuant to the order at Annexure– B, the amount in demand and the penalty amounting to Rs.20,32,214/- has been debited from the petitioner’s Bank account. On that basis, he submits that since an ex parte order has been passed, the amount may be refunded to the petitioner pending consideration with the respondents.
Though there is no dispute as regards notice not having been served on the petitioner, the fact remains that on the basis of the impugned order passed the tax amount due as also the penalty have already been recovered by the Department. Since the impugned order is required to be set aside and the matter remitted for fresh consideration, normally this Court would have directed to refund of monies to the petitioner, however, the petitioner admittedly has stopped his business and surrendered his GST registration in the month of October 2024. HC-KAR NC: 2025:KHC:25182
If that be so, no business being run by the petitioner, if a refund is ordered by this Court, the interest of the revenue cannot be protected. As such, this Court refrains from directing refund of the monies to the petitioner except the penalty which has been debited by the revenue. In the event of the petitioner succeeding, the petitioner would also be entitled to interest on the amount debited. In that view of the matter, I pass the following: ORDER i. The impugned order No.21/2024-25 dated 30.04.2024 at Annexure-B passed by respondent No.3 is set aside. ii. The GST registration of the petitioner shall stand restored. iii. 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.3 on 28.07.2025 at 2.30 p.m. without requirement of further notice. HC-KAR NC: 2025:KHC:25182 iv. Petitioner shall pay a cost of Rs.25,000/- (Rupees Twenty give thousand only) to the Karnataka State Legal Services Authority, within a period of two weeks from today. v. The respondent No.3 is directed to refund the penalty amount to the petitioner within a period of four weeks from today. vi. With the above observations, the petition stands disposed. (SURAJ GOVINDARAJ) JUDGE
KTY List No.: 1 Sl No.: 18
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.