Shri Basavaraj Shivappa Rayapur vs. The Commercial Tax Officer - Karnataka High Court, 07 March 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC-D:4384 WP No. 103551 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. 103551 OF 2023 (T-RES) BETWEEN: SHRI. BASAVARAJ SHIVAPPA RAYAPUR, AGE: 54 YEARS, OCC: BUSINESS, PROPRIETOR OF M/S. SHRI. DEVI STONE CRUSHER INDUSTRIES, R/O: CTS NO.194 MIG I, H.NO.365, SHRI. DEVI STONE CRUSHER INDUSTRIES, SIDDALING NAGAR, OPP. J.T. MATH SCHOOL, GADAG-582 103, GSTIN:29AIUPR5893G1Z6. … PETITIONER (BY SRI. H.R KAMBIYAVAR, ADVOCATE) AND: 1. THE COMMERCIAL TAX OFFICER (AUDIT), GOVERNMENT OF KARNATAKA, DEPARTMENT OF COMMERCIAL TAXES, FIRST FLOOR, ‘NISARGA’ MULGUND ROAD, GADAG-582 103. 2. THE UNION OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVALUE, THROUGH ITS SECRETARY (REVENUE), NORTH BOCK, NEW DELHI-110 001. 3. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE (GST WING), Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:4384 WP No. 103551 of 2023 REPRESENTED BY ITS SECRETARY, VIDHANA SOUDHA, BENGALURU-560 001. … RESPONDENTS (BY SRI. GANGADHAR J.M., AAG A/W SMT. KIRTILATA R. PATIL, HCGP FOR R1 AND R3; SRI. M.B. KANAVI, CGSC FOR R2) 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.H.R.Kambiyavar., counsel for the petitioner, Sri.Gangadhar J.M., AAG for respondents 1 and 3 and Sri.M.B.Kanavi., counsel for the respondent No.2 have appeared in person.

The captioned Writ Petition is filed seeking a Writ of certiorari to quash the Notifications and the circular instructions that have led to levy of GST on the amount of royalty specifically including Circular bearing No.164/20.2021-GST dated 06.10.2021 vide Annexure-D and to quash the Audit Report U/s. 65(6) R/w. Rule 101(5) of the KGST Act and Rules 2017, dated:12.01.2013 for the Financial Year 2018-19 issued NC: 2025:KHC-D:4384 by respondent No.1 vide Annexures-E & F, in so far as petitioner is concerned.

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:4384

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 CLK LIST NO.: 1 SL NO.: 43