Shri Rahul Manoharsa Metrani vs. Additional Commissioner
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The petitioner, Shri Rahul Manoharsa Metrani, proprietor of Southern Sanitation, filed a writ petition challenging an Order-in-Original dated 31.08.2023 (issued on 08.09.2023) passed by the Additional Commissioner of Central Tax (Respondent No. 1). The petitioner also challenged a Notice to Show Cause dated 19.04.2021 (SCN No. 86/2021-22) issued by Respondent No. 1, and a Notice dated 22.04.2024 in Form GST DRC-13, issued by the Assistant Commissioner of Central Tax (Respondent No. 2) to the Branch Manager of Tamilnadu Merchantile Bank Ltd. The writ petition sought to quash these orders and notices.
Held
The Court held that the issue in controversy was directly covered by the judgment of a co-ordinate bench in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax (WP No. 11154/2023 & connected matters dated 03.07.2024). Following that judgment, the Court ordered that writ petitions challenging show-cause notices would be relegated to the designated officers to be reconsidered at the same stage. For writ petitions challenging Orders-in-Original, the Orders-in-Original were set aside and the matters were relegated to designated officers for reconsideration from the stage of the show-cause notice. The petitioners were granted liberty to file pleadings within a reasonable time. Demands made pursuant to the impugned orders were also set aside. Consequently, the impugned Order-in-Original dated 31.08.2023 passed by Respondent No. 1 was quashed.
Key Issues
1. Whether the Order-in-Original dated 31.08.2023, issued by the Additional Commissioner of Central Tax, is liable to be quashed. 2. Whether the Notice to Show Cause dated 19.04.2021, issued by the Additional Commissioner of Central Tax, is liable to be quashed. 3. Whether the Notice dated 22.04.2024 in Form GST DRC-13, issued by the Assistant Commissioner of Central Tax, is liable to be quashed. The petitioner sought to quash these impugned orders and notices. The respondents, represented by counsel, did not present specific arguments as the Court relied on a co-ordinate bench's judgment. The judgment records no specific arguments from the respondents.
Sections Cited
None explicitly mentioned in the provided text, other than the general reference to GST and Service Tax proceedings.
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:
“(i) Issue a writ in the nature of certiorari quashing the Order-in-Original dated 31.08.2023 issued on 08.09.2023 bearing OIO No.71/2023-24-SERVICE TAX passed by the Respondent No.1, enclosed herewith as Annexure-A.
(ii) Issue a writ of Certiorari quashing the Notice to show cause dated 19.04.2021 bearing SCN No:86/2021- NC: 2025:KHC:12171 22 issued by the Respondent No.1, enclosed herewith and marked as Annexure-B.
iii) Issue a writ of Certiorari quashing the Notice dated 22.04.2024 in Form GST DRC-13 addressed to the Branch Manager, Tamilnadu Merchantile Bank Ltd, Kengeri, Bengaluru 560060 issued by the Respondent No.2, enclosed herewith and marked as Annexure-C.
iv) And pass such other orders as this Hon’ble Court deems fit and proper in the interest 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 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 NC: 2025:KHC:12171 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."
Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court. NC: 2025:KHC:12171
Accordingly, the impugned Order-in-original at Annexure-A dated 31.08.2023 issued on 08.09.2023, passed by respondent No.1, is hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 1 Sl No.: 69
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.