Lokesh Enterprises vs. The Additional Commissioner Of Central Tax
Original PDF →Facts
The petitioner, Lokesh Enterprises, represented by its proprietor Shri Chikkaswamy, filed a writ petition before the High Court of Karnataka. The petition challenged an Order-In-Original (OIO) bearing No. 104/2024-25, dated September 11, 2024, passed by the Additional Commissioner of Central Tax, GST West Commissionerate (the first respondent). The petitioner sought to quash this order and restrain the authority from adjudicating it. The respondents were the Additional Commissioner and the Assistant Commissioner of Central Tax. The matter was heard by the High Court, which considered the arguments from both sides and perused the record.
Held
The High Court held that the issue in controversy was directly and 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 set aside Orders-in-Original that were under challenge and relegated the matters to the designated officers to be reconsidered from the stage of the show-cause notice. The Court further directed that petitioners could file their pleadings within a reasonable time fixed by the officers. Consequently, applying the ratio of the Karnataka Chinmaya Seva Trust case, the High Court quashed the impugned Order-in-Original dated September 11, 2024, passed by the first respondent. The matter was disposed of in terms of the aforesaid judgment.
Key Issues
1. Whether the impugned Order-In-Original No. 104/2024-25, dated September 11, 2024, passed by the Additional Commissioner of Central Tax, is liable to be quashed, in light of the judgment of a co-ordinate bench of this Court in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax? The petitioner argued for quashing the order. The respondents also presented their contentions. The core of the dispute revolved around the validity and continuation of the adjudication process leading to the Order-In-Original. The Court's decision was predicated on its prior ruling in a similar case concerning challenges to show-cause notices and Orders-in-Original under the GST regime.
Sections Cited
None explicitly mentioned in the provided text, beyond the general reference to GST and Service Tax.
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:
“ a) Issue a writ in the nature of certiorari or any other writ quashing the impugned Order-In-Original bearing OIO No.104/2024-25 service Tax [DIN 20240957YU0000555A88] dated: 11.09.2024 [ Annexure-A] passed by the First Respondent and /or restrain the said authority from adjudicating the same.
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 of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024, wherein it was held as under; NC: 2025:KHC:15379 "
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 the impugned orders, such proceedings are also set aside." NC: 2025:KHC:15379
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 11.09.2024, passed by respondent No.1, is hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 71
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.