BharatTaxGST

Abhishek Datt vs. The State Of Karnataka

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WP/1231/2025HC KarnatakaGSTCNR KAHC01001614202503 April 2025Bench: S.R.KRISHNA KUMAR4 pages
For Petitioner: SRI. ABHAY V SHETTY., ADVOCATEFor Respondent: SRI.K. HEMAKUMAR, AGA
AI SummaryPartly Allowed

Facts

The petitioner challenged an order levying tax and interest amounting to Rs. 44,06,24,338/-. The petitioner also sought a declaration that audit proceedings under Section 65(6) of the CGST Act cannot be initiated against an unregistered entity.

Held

The Court disposed of the petition without expressing any opinion on the merits. It granted the petitioner liberty to submit a reply to the intimation notice within four weeks.

Key Issues

Whether audit proceedings under Section 65(6) of the CGST Act can be initiated against an unregistered entity and the validity of the impugned order levying tax and interest.

Sections Cited

Section 65(6)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:14082 WP No. 1231 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 1231 OF 2025 (T-RES) BETWEEN: ABHISHEK DATT S/O YOGESH DATT, AGED ABOUT 47 YEARS, DBS HOUSE, 26, CUNNINGHAM ROAD, VASANTHNAGAR, BENGALURU - 560 052. …PETITIONER (BY SRI. ABHAY V SHETTY.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY TO COMMERCE AND INDUSTRY DEPARTMENT BANGIORE KARNATAKA GOVT. SECRETARIAT CORPORATION CIRCLE, CUBBONPETE, NAGARATHPETA BENGALURU – 560 002. 2. PRINCIPAL CHIEF COMMISSIONER OF CENTRAL TAX BENGALURU EAST, COMMISSIONERATE, BMTC BUILDING, OLD AIRPORT RD. DOMLUR, BENGALURU – 560 071. 3. THE OFFICE OF THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) - 5.3, DGSTO-5, ROOM NO. 506, 5TH FLOOR, VANIJYATERIGE KARYALAYA - 2, NEAR NATIONAL GAMES VILLAGE, RAJENDRANAGAR, KORAMANGALA, BENGALURU – 560 047. …RESPONDENTS (BY SRI.K. HEMAKUMAR, AGA) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:14082 WP No. 1231 of 2025 THIS W.P IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUITON OF INDIA PRAYING TO CALL FOR THE RECORDS PERTAINING TO THE IMPUGNED ORDER DATED 20/05/2024 PASSED BY R3 FORM GST DRC-01A VIDE REFERENCE NO. ZD290524058550A ALONG WITH SUMMARY OF ADJUDICATIO VIDE REF. NO. T.NO./157/2024-25 PASSING AN ERRONEOUS ORDER LEVYING TAX PLUS INTEREST AMOUNTING TO RS. 44,06,24,338/- ANN-E PERUSE AND DECLARE THAT THE SAME IS ARBITRARY ILLEGAL AND WITHOUT AUTHORITY OF LAW. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this petition, petitioner seeks for the following reliefs: “i) Issue a writ of certiorari quashing the impugned order dated 20.05.2024 passed by respondent No.3 FORM GST DRC-01A vide reference No.ZD290524058550A along with Summary of adjudication vide reference No.T.No./157/2024- 25 passing an erroneous order levying Tax + Interest amounting to Rs.44,06,24,338/- Annexure-E and subsequent proceedings levying penalties and dues on the petitioner under the KGST/CGST Act, 2017. ii) Declare that the audit proceedings u/s 65(6) of CGST Act cannot be initiated against an unregistered entity. NC: 2025:KHC:14082 iii) Pass such other order or orders as this Hon’ble Court deems fit and proper to grant in the facts and circumstances of the case, including the costs of this petition in the interest of justice and equity”

2.

After arguing the matter for some time, learned counsel for the petitioner submits that the petition may be disposed of reserving liberty in favour of petitioner to submit reply to the intimation at Annexure-E dated 20.05.2024 with a direction to the respondent to consider the same and proceed further in accordance with law.

3.

Per contra, learned AGA submits that in the event, the petitioner submits a reply to Annexure-E dated 20.05.2024 issued by respondent No.3, respondent No.3 would consider the same and proceed further in accordance with law and issue further notices/pass appropriate orders, if not already given/if not already passed as on today.

4.

In view of the aforesaid facts and circumstances, without expressing any opinion on the merits/demerits of the various contentions urged in the petition sought for by the NC: 2025:KHC:14082 petitioner, petition stands disposed of reserving liberty in favour of the petitioner to submit reply to Annexure-E dated 20.05.2024. 5. If such a reply is sent within a period of four weeks from today, respondent No.3 shall consider the same and proceed further in accordance with law and issue further notices/pass appropriate orders, if not already given/if not already passed as on today in accordance with law after providing sufficient/reasonable opportunity to the petitioner.

6.

Accordingly, petition stands disposed of reserving liberty to take recourse to such remedy as may be available in law including approaching this Court. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 1 Sl No.: 67

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.