M/S Shiva Ferric Private Limited vs. Union Of INDIA

WP/33822/2024HC KarnatakaGSTCNR KAHC01069383202428 March 2025Bench: S.R.KRISHNA KUMAR5 pages

For Petitioner: SRI. HANJER RAGHAVENDRA BASAVARAJ, ADVOCATEFor Respondent: SRI. MADANAN PILLAI, CGC FOR R1; SRI. ARAVIND V . CHAVAN, ADVOCATE FOR R2 AND R6; SRI. HEMA KUMAR K., AGA FOR R3 TO R5

AI SummaryPartly Allowed

Facts

The petitioner sought to declare Section 16(2)(c) of the CGST and SGST Acts as illegal and ultra vires, and to allow transitional Input Tax Credit (ITC). The petitioner also challenged a show cause notice and adjudication order related to GST demand, interest, and penalty.

Held

The Court directed the respondent to consider the petitioner's pending representation regarding transitional ITC. Liberty was granted to the petitioner to file a rectification application after the representation is decided, which the respondent was directed to consider.

Key Issues

The primary issues were the legality of Section 16(2)(c) and the validity of transitional ITC. The Court focused on the procedural aspect of considering the petitioner's representation and rectification application.

Sections Cited

Section 16(2)(c), Section 73, Section 50

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC:13221 WP NO.33822 OF 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR WRIT PETITION NO.33822 OF 2024 (T-RES) BETWEEN: M/S. SHIVA FERRIC PRIVATE LIMITED (A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) REP. BY ITS DIRECTOR, SRI. LALIT KUMAR PURVA, SHIV SADAN, NO.193, 4TH OUTER RING ROAD, B. NARAYANAPURA, BENGALURU - 560 016. …PETITIONER (BY SRI. HANJER RAGHAVENDRA BASAVARAJ, ADVOCATE) AND: 1. UNION OF INDIA REP. BY ITS SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, RASHTRAPATI BHAWAN, DEFENCE HEAD QUARTERS, NEW DELHI -110 001. 2. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS REP. BY ITS CHAIRMAN, HAVING ITS OFFICE AT NORTH BLOCK, RASHTRAPATI BHAWAN, DEFENCE HEAD QUARTERS, NEW DELHI - 110 001. 3. STATE OF KARNATAKA, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF REVENUE, Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13221 WP NO.33822 OF 2024 VIDHANA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BENGALURU - 560 001. 4. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA BHAVAN, GANDHI NAGAR, BENGALURU - 560 001. 5. 6. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (AUDIT)-5.10, DGSTO-5, ROOM NO.601, 6TH FLOOR, B-BLOCK, VTK-2, NEAR NATIONAL GAMES VILLAGE, RAJENDRA NAGAR, KORAMANGALA, BENGALURU - 560 047. SUPERINTENDENT OF CENTRAL TAX BED-6 RANGE, EAST DIVISION-6, GST EAST COMMISSIONERATE TTMC/BMTC BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU - 560 071. …RESPONDENTS (BY SRI. MADANAN PILLAI, CGC FOR R1; SRI. ARAVIND V . CHAVAN, ADVOCATE FOR R2 AND R6; SRI. HEMA KUMAR K., AGA FOR R3 TO R5) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT IN THE NATURE OF ANY WRIT DECLARING THAT SECTION 16(2)(c) OF THE CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND THE KARNATAKA GOODS AND SERVICE TAX ACT, 2017 IS ILLEGAL AND ULTRA VIRES THE CONSTITUTION; AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR - 3 - NC: 2025:KHC:13221 WP NO.33822 OF 2024

ORAL ORDER

In this petition, the petitioner seeks following relief: "a) Issue a writ, order or direction in the nature of any writ declaring that Section 16(2)(c) of the Central Goods and Service Tax Act, 2017 and the Karnataka Goods and Services Tax Act, 2017 is illegal and ultra vires the Constitution; b) Issue a writ, order or direction in the nature of any writ declaring that transitional ITC of Rs.12,55,549/- claimed by the petitioner through GSTR-3B filed for the month of August 2019 is valid and legal; c) Alternatively, issue a writ, order or direction in the nature of writ of mandamus directing the Respondents to consider the representation dated 12.03.2019 (Annexure- L) or by taking a fresh representation for allowing of transitional ITC of Rs.12,55,549/-; d) Consequently, issue a writ, order or direction in the nature of Certiorari by quashing the Show Cause Notice bearing No.JCCT(ADMIN)DGST-5/DCCT/AUDIT-5.10/ /2024-25 dated 30.05.2024 along with Summary of Show Cause Notice bearing Reference No.ZD290524116691B dated 30.05.2024 issued in FORM GST DRC-01 by the 5th Respondent (Annexure-A) issued by the 5th Respondent and the Order of Adjudication along with Summary of the Order under Section 73(9)/74(9) bearing No.DCCT(AUDIT05.10)/DGSTO.S/ADJ/2024-25 dated 29.08.2024 issued in FORM GST DRC-07 by the 5th Respondent (Annexure-B) and thereby set aside the demand of GST of Rs.17,62,657/- along with interest of Rs.13,72,554/- and also imposed penalty of Rs.1,76,266/- NC: 2025:KHC:13221 WP NO.33822 OF 2024

totalling to Rs.1,07,26,738/- confirmed respectively under the provisions of Sections 73(1), 50 and 73(9) of the CGST Act, 2017/SGST Act, 2017; e) Pass such other order/s or direction/s as deemed fit and proper in the facts and circumstances of the case in the interest of justice."

After arguing for some time, learned counsel for the petitioner submits that the representation at Annexure-L dated 12.03.2019 submitted by the petitioner to the respondent No.6 is pending consideration even till today and as such, the present petition may be disposed of directing the respondent No.6 to consider the said representation and take appropriate decision in accordance with law.

It is further submitted by learned counsel for the petitioner that, upon respondent No.6 passing appropriate orders as stated above after considering the representation at Annexure-L dated 12.03.2019, liberty may be reserved in favour of the petitioner to file rectification application before the respondent No.5 along with direction to the respondent No.5 to consider the said rectification application and take appropriate decision / pass appropriate orders on merits in accordance with law.

The said submission of the learned counsel for the petitioner is placed on record. NC: 2025:KHC:13221 WP NO.33822 OF 2024

Accordingly, the respondent No.6 is directed to consider the representation of the petitioner at Annexure-L dated 12.03.2019 and pass appropriate orders / take appropriate decision in accordance with law as expeditiously as possible. Liberty is reserved in favour of the petitioner to submit an additional representation/documents etc., and approach the respondent No.6 within a period of four weeks from today pursuant to which, the respondent No.6 shall consider the same and proceed further in accordance with law.

It is further directed that, upon the respondent No.6 passing appropriate order / taking appropriate decision as stated above, liberty is reserved in favour of the petitioner to file rectification application seeking rectification of the impugned order at Annexure-B dated 29.08.2024 before the respondent No.5, who shall consider the said rectification application and proceed further by providing sufficient and reasonable opportunity to the petitioner in accordance with law.

Subject to aforesaid directions and liberty reserved in favour of the petitioner Writ Petition stands disposed of. (S.R.KRISHNA KUMAR) JUDGE

ARK List No.: 1 Sl No.: 16

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.