Sri Byraveshwara Tours And Travels vs. Deputy Commissioner Of Central Tax
Original PDF →Facts
The petitioner, Sri Byraveshwara Tours and Travels, a sole proprietorship, filed a writ petition before the High Court of Karnataka. The petitioner sought to quash an Order-in-Original No. 71/2022-SD6 dated March 7, 2022, passed by the Deputy Commissioner of Central Tax (Respondent No. 1). Additionally, the petitioner challenged a recovery notice, GST DRC-13 dated February 7, 2025, issued by the Assistant Commissioner of Central Tax (Respondent No. 2) to HDFC Bank. The recovery notice was issued to recover dues pursuant to the Order-in-Original. The petition was filed under Articles 226 and 227 of the Constitution of India.
Held
The Court held that the present 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. In that precedent, the Court had ordered that Orders-in-Original challenging show-cause notices would be relegated to the designated officers to be reconsidered from the stage of the show-cause notice. For petitions challenging Orders-in-Original, the Orders-in-Original were set aside, and the matters were relegated to designated officers to be reconsidered from the stage of the show-cause notice. The Court also directed that wherever demands were made pursuant to impugned orders, such proceedings were set aside. Consequently, the impugned Order-in-Original dated March 7, 2022, passed by Respondent No. 1, was quashed. The recovery notice was implicitly set aside as a consequence of the Order-in-Original being quashed.
Key Issues
1. Whether the impugned Order-in-Original No. 71/2022-SD6 dated March 7, 2022, passed by the Deputy Commissioner of Central Tax, is liable to be quashed? 2. Whether the recovery notice GST DRC-13 dated February 7, 2025, issued by the Assistant Commissioner of Central Tax, is liable to be quashed? The petitioner argued for the quashing of both the Order-in-Original and the recovery notice. The respondents, represented by their counsel, also presented their arguments. The Court noted that the issue in controversy was directly covered by a 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 July 3, 2024.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER
In this petitioner, the petitioner seeks the following reliefs:
“(a) Issue a writ in the nature of certiorari or any other writ/to quash the impugned Order-in-Original No.71/2022- 6 dated: 07.03.2022 (Annexure-A) passed by the First Respondent and Recovery Notice i.e,. GST DRC-13 dated: 07.02.2025 issued by the Second Respondent to the Branch Manager, HDGC Bank, No.10, J.C. Industrial Area, Yelachenahalli, Konankunte Cross, Kanakapura Road, Bengaluru – 560 052( Annexure-B).
(b) Grant such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice.”
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 Commissioner NC: 2025:KHC:15382 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 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, i.e. be set aside as per the directions made above. Wherever demands have been made pursuant to NC: 2025:KHC:15382 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 07.03.2022, passed by respondent No.1, is hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 82
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.