Mr. Gopal Ram vs. Commercial Tax Officer
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The petitioner, Mr. Gopal Ram, a place of business owner in Bengaluru, filed a writ petition challenging a notice under Section 46 of the KGST Act dated July 30, 2024, issued by the Commercial Tax Officer (Respondent). This notice required the petitioner to file returns within 15 days. As the petitioner failed to comply within the stipulated period, the respondent proceeded to pass an ex-parte assessment order on August 17, 2024, and initiated recovery proceedings. The petitioner sought to quash both the notice and the assessment order, and also requested a refund of Rs. 5,15,028 recovered pursuant to the impugned order.
Held
The Court disposed of the writ petition by reserving liberty in favour of the petitioner to file their returns and pay taxes within a period of four weeks from the date of the order. If the petitioner complies with this direction, the respondent is directed to consider the filed returns and taxes and proceed further to take an appropriate decision or pass appropriate orders in accordance with the law. The Court further directed that until the respondent takes such a decision and passes orders, no precipitative or coercive steps shall be taken against the petitioner. The issue of refund of Rs. 5,15,028 was not expressly decided but was implicitly deferred pending the petitioner's compliance and the respondent's subsequent decision.
Key Issues
1. Whether the ex-parte assessment order dated 17.08.2024, issued under Section 46 of the KGST Act, is liable to be quashed? 2. Whether the petitioner is entitled to a refund of Rs. 5,15,028 recovered pursuant to the impugned order? The petitioner argued that if granted an opportunity, they would file the pending returns and pay the requisite taxes. They requested the respondent to consider this and refrain from taking precipitative or coercive steps until appropriate orders were passed. The respondent, through the learned AGA, submitted that if the petitioner files their return and pays the tax within a time stipulated by the Court, the respondent would consider it and pass appropriate orders in accordance with the law.
Sections Cited
Section 46
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks for the following reliefs: “i) Quash the Notice under Section 46 dated 30.07.2024 bearing Reference No. ZA290724184673Z Issued by the Respondent (Annexure - A)
ii) Quash the Ex-Parte Assessment Order dated 17.08.2024 together with Form GST ASMT 13 and Summary of the Order in dated 17.08.2024 all issued by the Respondent (Annexure B Ref No 29DTQPR3738J1ZE, B1 Ref No. ZD290824062767P and B2 Ref No. ZD290824062767P)
iii) Direct the Respondent to refund the amount of Rs.5,15,028 recovered pursuant to the impugned Order at Annexure B Ref No 29DTQPR3738J1ZE.
iv. Pass such other or further order as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.”
A perusal of the material on record will indicate that on 30.07.2024, respondent issued a notice under Section 46 of KGST Act calling upon the petitioner to file returns within 15 days. Since the petitioner did not file the returns within the aforesaid period of 15 days, respondent proceeded to pass the impugned assessment order dated 17.08.2024 following by initiating recovery proceedings NC: 2025:KHC:12201 against the petitioner, who is before this Court by way of the present petition.
Learned counsel for the petitioner submits that if an opportunity is provided to the petitioner, the petitioner would file his returns and pay requisite taxes, the respondent may be directed to consider the same and proceed further in accordance with law and by directing the respondent not to take precipitative/coercive steps till appropriate orders are passed by the respondent.
Per contra, learned AGA for the respondent submits that if the petitioner files his return and pays the tax within time stipulated by this Court, the respondent shall consider and pass appropriate orders in accordance with law.
In view of the aforesaid facts and circumstances of the case and submissions made by both sides, I deem it just and appropriate to dispose of this petition reserving liberty in favour of the petitioner to file returns and pay taxes within a period of four weeks from today. If the petitioner files return and pay taxes as stated supra within a period of four weeks from today, the respondent shall consider the same and proceed further and take NC: 2025:KHC:12201 appropriate decision/pass appropriate orders in accordance with law.
It is further directed that till the respondent takes appropriate decision and pass appropriate orders as stated supra, respondent shall not take any further precipitative/coercive steps against the petitioner. Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 1 Sl No.: 98
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.