M/S Datta Stone Quarry vs. The State Of Karnataka - Karnataka High Court, 07 March 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC-D:4405 WP No. 106329 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 7TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 106329 OF 2023 (T-RES) BETWEEN: M/S DATTA STONE QUARRY, A PROPRIETORSHIP CONCERN, REPRESENTED BY ITS PROPRIETOR, SHRI DATTA BUTTA, AGE: 55 YEARS, OCC: BUSINESS, R/O: SY.NO.98 AMARADEVARAGUDDA, KUDLIGI-583 135, DIST: BALLARI. … PETITIONER (BY SRI. SABEEL AHMED, ADVOCATE) AND: 1. THE ASSISTANT COMMERCIAL OF COMMERCIAL TAXES OFFICE, (ENFORCEMENT) HUDA BUILDING ISR ROAD, HOSPETE-583 201, DIST: VIJAYANAGARA. 2. THE STATE OF KARNATAKA, BY ITS SECRETARY DEPARTMENT OF COMMERCIAL TAXES, 'VANIJYA TERIGE KARYALAYA' KALIDASA MARG, GANDHI NAGAR, BENGALURU-560 009. 3. THE UNION OF INDIA, REPRESENTED BY THE JOINT SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, 46, NORTH BLOCK, NEW DELHI-110 001. Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:4405 WP No. 106329 of 2023 4. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, BY IT’S CHAIRMAN, NORTH BLOCK, NEW DELHI-110 001. … RESPONDENTS (BY SRI. GANGADHAR J.M., AAG A/W SMT. KIRTILATA R. PATIL, HCGP FOR R1-R2; SRI. SANJAY S. KATAGER, ADVOCATE FOR R3; SRI. GIRISH S. HULAMANI, ADVOCATE FOR R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER:

ORAL ORDER

Sri.Sabeel Ahmed., counsel for the petitioner, Sri.Gangadhar J.M., AAG for respondents 1 and 2 and Sri.Girish.S.Hulamani., counsel for the respondent No.4 have appeared in person.

The captioned Writ Petition is filed seeking a Writ of certiorari to quash the show cause notice dated:29.09.2023 issued by respondent No.1 vide Annexure-C; to quash the show cause notice dated:29.09.2023 issued by respondent No.1 vide Annexure-D and to quash the show cause notice dated:29.09.2023 issued by respondent No.1 vide Annexure-E. NC: 2025:KHC-D:4405

Heard the arguments and perused the writ papers with care.

The Hon’ble Apex Court in Civil Appeal Nos.4056- 4064/1999 disposed of on 14.08.2024 has passed the order. The conclusion of the Nine Judges are as follows: “E. Conclusion.

24.

The submission that MADA (supra) should be given prospective effect is rejected.

25.

Bearing in mind the consequences that would emanate from the past period the following conditionalities are directed to prevail: a. While the States may levy or renew demands of tax, if any, pertaining to Entries 49 and 50 of list II of such Seventh Schedule in terms of the law laid down in the decision in MADA (supra) the demand of tax shall not operate on transactions made prior to 1 April 2005; b. The time for payment of the demand of tax shall be staggered in installments over a period of twelve years commencing from 1 April 2026; and c. The Levy of interest and penalty on demands made for the period before 25 July 2024 shall stand waived for all the assesses.” NC: 2025:KHC-D:4405

Therefore, this Court deems it proper to direct the petitioner to approach the First Appellate Authority under Section 107 of the GST Act, to address his grievance. Needless to observe that, the authority shall take into consideration of the decision of the Hon’ble Apex Court.

With the above observation, the Writ Petition is disposed of with a liberty to approach the Appellate Authority. The Authority may consider the time spent by the petitioner before this Court while entertaining the appeal. (JYOTI MULIMANI) JUDGE

RH LIST NO.: 1 SL NO.: 47