M/S Al-Tech Engineering And vs. Union Of INDIA

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WP/27664/2024HC KarnatakaGSTCNR KAHC01056695202420 March 2025Bench: S.R.KRISHNA KUMAR8 pages
For Petitioner: SRI. VENKATESH G., ADVOCATEFor Respondent: SRI. POOJAPPA J., ADVOCATE FOR R1; SRI. ARAVIND V. CHAVAN, ADVOCATE FOR R2; SMT. JYOTI M. MARADI, HCGP FOR R3 TO R6

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Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:11772 WP No. 27664 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.27664 OF 2024 (T-RES) BETWEEN: M/S AL-TECH ENGINEERING AND CONSTRUCTION PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 REPRESENTED BY ITS DIRECTOR MR. MI IBRAHIM ALI, SON OF MR.B IBRAHIM, AGED ABOUT 40 YEARS, 2, G2, MURTHY RESIDENCY, NAGWARA, BENGALURU – 560 045. …PETITIONER (BY SRI. VENKATESH G., ADVOCATE) AND: 1. UNION OF INDIA MINISTRY OF FINANCE, REPRESENTED BY ITS SECRETARY, NORTH BLOCK, NEW DELHI – 110 001. 2. CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, REPRESENTED BY ITS CHAIRPERSON, NORTH BLOCK, NEW DELHI – 110 001. 3. STATE OF KARNATAKA, REPRESENTED BY SECRETARY Digitally signed by LEELAVATHI S R Location: High Court of Karnataka - 2 - NC: 2025:KHC:11772 WP No. 27664 of 2024 FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU – 560 001. 4. THE COMMISSIONER OF COMMERCIAL TAXES, VTK-2, KALIDASA ROAD, GANDHINAGAR, BENGALURU – 560 009. 5. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) - 5.4, 5TH FLOOR, ROOM NO.506, ‘B’ BLOCK, VTK-2, KORAMANGALA, BENGALURU – 560 047. 6. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-56, NO.669/0, 2ND AND 3RD FLOOR, HBR LAYOUT, BENGALURU – 560 043. …RESPONDENTS (BY SRI. POOJAPPA J., ADVOCATE FOR R1; SRI. ARAVIND V. CHAVAN, ADVOCATE FOR R2; SMT. JYOTI M. MARADI, HCGP FOR R3 TO R6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 30.05.2024 IN FORM GST DRC-01 BEARING FILE NO.DCCT(A)-5.4/GST(ADT)/2024-25 FOR THE FINANCIAL YEAR 2019-20 ISSUED BY THE RESPONDENT NO.5 HEREIN MARKED AS ANNEXURE-A1 AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2025:KHC:11772 WP No. 27664 of 2024

ORAL ORDER In this petition, petitioner seeks the following reliefs: (i) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Show-cause Notice dated 30.05.2024 in Form GST DRC-01 bearing File No. DCCT(A)-5.4/GST(ADT)/2024-25 for the financial year 2019-20 issued by the Respondent No.5 herein marked as Annexure-A1. (ii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Summary of show- cause notice dated 30.05.2024 in Form GST DRC- 01 bearing Reference No.ZD2905241162969 for the financial year 2019-20 issued by the Respondent No.5 herein marked as Annexure- A2. (iii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Show-cause Notice dated 30.05.2024 bearing No.NIL for the financial year 2019-20 issued by the Respondent No.6 herein marked as Annexure- B1. (iv) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Summary of the show-cause notice dated 31.05.2024 In Form GST DRC-01 bearing Reference No.ZD290524130042S for the financial year 2019-20 issued by the Respondent No.6 herein marked as Annexure- B2. (v) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Proceedings of the Deputy Commissioner of Commercial Taxes (Audit)- 5.4, Bengaluru dated 17.08.2024 bearing File No.DCCT(A)-5.4/GST(ADJ)-4/2024-25 for the financial year 2019-20 passed by the Respondent No.5 herein marked as Annexure-C1. (vi) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Order under section 73 of KGST / CGST Act, 2017 dated 17.08.2024 bearing Reference No.:ZD2908240617505 for the NC: 2025:KHC:11772 financial year 2019-20 passed by the Respondent No.5 herein marked as Annexure-C2. (vii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Summary of the order in Form GST DRC-07 dated 17.08.2024 bearing Reference No.:ZD2908240617505 for the financial year 2019-20 passed by the Respondent No.5 herein marked as Annexure-C3. (viii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Order under section 73 of CGST / KGST Act, 2017 and Order u/s 21 of IGST Act, 2017 in Form GST DRC-07 dated 16.08.2024 bearing T.No.946/2024-25 for the financial year 2019-20 passed by the Respondent No.6 herein marked as Annexure-D1. (ix) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Order under section 73 of KGST / CGST Act, 2017 dated 17.08.2024 bearing Reference No.ZD2908240631456 for the financial year 2019-20 passed by the Respondent No.6 herein marked as Annexure-D2. (x) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Summary of the order in Form GST DRC-07 dated 17.08.2024 bearing Reference No.ZD2908240631456 for the financial year 2019-20 passed by the Respondent No.6 herein marked as Annexure-D3. (xi) Declare that the impugned Notification No.9/2023- CT dated 31.03.2023 is illegal and ultra vires the provisions of section 168A of CGST Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification No.9/2023-CT dated 31.03.2023 referred as Annexure-E1. (xii) Declare that the Impugned Notification No.56/2023- CT dated 28.12.2023 is Illegal and ultra vires the provisions of section 168A of CGST Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the Impugned NC: 2025:KHC:11772 Notification No.56/2023-CT dated 28.12.2023 referred to as Annexure-E2. (xiii) Declare that the impugned Notification (06/2023) dated 06.04.2023 is illegal and ultra vires the provisions of section 168A of KGST Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the Impugned Notification (06/2023) dated 06.04.2023 referred to as Annexure-F1. (xiv) Declare that the impugned Notification (25/2023) dated 29.12.2023 is illegal and ultra vires the provisions of section 168A of CGST Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification (25/2023) dated 29.12.2023 referred to as Annexure-F2. (xv) And pass such other orders as this Hon'ble Court deems fit and proper including awarding of cost of this writ petition in the interest of justice and equity.”

2.

A perusal of the material on record will indicate that both respondent No.6 – Assistant Commissioner and respondent No.5 – Deputy Commissioner issued two separate Show Cause Notices under Section 73(1) of the KGST Act dated 30.05.2024 and 30.05.2024, respectively, which culminated in the adjudication proceedings and passing of two separate adjudication orders both dated 17.08.2024 and 16.08.2024 by respondent Nos.5 and 6, respectively, under Section 73(9) of the KGST Act. Hence, petitioner is before this Court by way of the present petition. NC: 2025:KHC:11772

3.

Learned counsel for the petitioner submitted that simultaneous / dual / parallel proceedings by respondent Nos.5 and 6 is impermissible in law and in view of the principles underlying Section 6(2)(b) of CGST/KGST Act, which specifically prohibits simultaneous / dual / parallel proceedings by Central and State Authorities, the impugned orders passed by respondent Nos.5 and 6 deserve to be quashed.

4.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be set aside.

5.

As rightly contended by learned counsel for the petitioner, respondent No.6 – Assistant Commissioner and respondent No.5 – Deputy Commissioner have ventured to initiate simultaneous / dual / parallel proceedings in relation to the same year 2019-20 by putting forth the very same contentions against the petitioner, which is clearly impermissible in law and consequently, the impugned orders passed by respondent Nos.5 and 6 deserve to be quashed by reserving liberty in favour of respondent No.5 – Deputy Commissioner to proceed further in accordance with law. NC: 2025:KHC:11772

6.

In the result, I pass the following: ORDER i) The petition is hereby allowed. ii) Show Cause Notice dated 30.05.2024 and the order dated 16.08.2024 issued / passed by respondent No.6 is hereby quashed. iii) Impugned order at Annexures – C1, C2 and C3 dated 17.08.2024 passed by respondent No.5 are hereby quashed. iv) Matter is remitted back to respondent No.5 for reconsideration afresh in accordance with law to the stage of replying to Show Cause Notice dated 30.05.2024 issued by respondent No.5 to the petitioner. v) Petitioner shall appear before respondent No.5 on 24.03.2025 without awaiting further notice. vi) Respondent shall treat the proceedings as one under Section 73(9) of the Act and pass appropriate orders on or before 26.03.2025. vii) Immediately upon the respondent passing appropriate orders against the petitioner under Section 73(9) of the Act as stated (supra), the NC: 2025:KHC:11772 petitioner would be entitled to file application/requisition seeking the benefit of GST Amnesty Scheme under Section 128A of the Act, which shall be considered by respondent who shall pass appropriate orders/take appropriate decision immediately thereafter. viii) It is made clear that this order is passed in the peculiar / special facts and circumstances of the instant case and that this order shall not be treated as a precedent nor shall the same have any precedential value for any purpose whatsoever. (S.R.KRISHNA KUMAR) JUDGE

SV List No.: 1 Sl No.: 84

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.