M/S Ambika Enterprises vs. The Deputy Commissioner Of Central Tax
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The petitioner, M/s Ambika Enterprises, represented by its proprietor, filed a writ petition before the High Court of Karnataka. The petitioner sought to quash an Order-in-Original bearing No. 190/2022-23, dated 03.07.2023, passed by the Deputy Commissioner of Central Tax, GST Commissionerate, Bengaluru East (Respondent No. 1). Additionally, the petitioner sought to quash a letter dated 20.06.2024, issued by the Principal Commissioner of Central Tax (Respondent No. 2) to the State Bank of India. The respondents are authorities under the Central Tax and GST regime. The procedural history involves the issuance of these orders by the revenue authorities, which are now under challenge by the petitioner.
Held
The High Court held that the present writ petition was squarely covered by the judgment of a Co-ordinate Bench in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax. Following the precedent set in that case, the Court decided to quash the impugned Order-in-Original dated 03.07.2023 and the impugned letter dated 20.06.2024. The reasoning was that the Co-ordinate Bench had set aside Orders-in-Original and relegated matters to the designated officers for reconsideration from the stage of the show-cause notice. The principle established is that challenges to Orders-in-Original, in light of the specific observations in the cited judgment, warrant setting aside the orders and remanding the matters for fresh consideration. The operative direction was to quash both the Order-in-Original and the letter, thereby disposing of the writ petition.
Key Issues
1. Whether the Order-in-Original bearing No. 190/2022-23 dated 03.07.2023, passed by the Deputy Commissioner of Central Tax, is liable to be quashed? 2. Whether the letter dated 20.06.2024, issued by the Principal Commissioner of Central Tax to the State Bank of India, is liable to be quashed? The petitioner contended that the impugned Order-in-Original and the subsequent letter are unsustainable and sought their quashing. The respondents, represented by learned counsel, also presented their arguments. The Court noted that the issues in controversy were directly covered by a previous judgment of a Co-ordinate Bench of the same High Court in the case of M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER In this petition, the petitioner seeks the following reliefs: "WHEREFORE the Petitioner respectfully prays that this Hon'ble Court be pleased to: i. Quash the Impugned Order-in-Original bearing No. 190/2022-23 DIN: 2023075700000000C930 dated 03.07.2023 passed by the 1" Respondent (Annexure A). ii. Quash the impugned Letter bearing DIN No. 2024065700000000B6FE dated 20.06.2024 issued by the 2nd Respondent to State Bank of India (Annexure - A1). iii. Pass such other or further order as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity."
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in the case of M/s.Karnataka Chinmaya Seva Trust Vs. Joint NC: 2025:KHC:15641 Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024, wherein it was held as under; "
Accordingly, the following: ORDER In light of observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-cause notice are disposed off. Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. Accordingly, such of the petitions at Sl. No.1 to 35 in Column No.2 of the table relating to challenge to Orders-in-Original are disposed off. The petitioners who are now relegated before the authorities concerned are at liberty to NC: 2025:KHC:15641 file their pleadings within a reasonable time as may be fixed by the Officers concerned. Wherever the matters are pending in appeal in light of the arrangement that is made, petitioners to file a memo for withdrawal of appeal and accordingly, the orders-in-original in question would also receive the same treatment, ie. be set aside as per the directions made above. Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside."
Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co- ordinate Bench of this Court.
Accordingly, the impugned Order-in-original at Annexure - A dated 03.07.2023 and the impugned letter at Annexure - A1 dated 20.06.2024 are hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE AP List No.: 1 Sl No.: 12
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.