Gtv Power Private Limited vs. The Principal Commissioner Of Central Tax
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The petitioner, GTV Power Private Limited, filed a writ petition before the Karnataka High Court challenging an Order-in-Original bearing No. 27/2024-25 dated July 10, 2024, passed by the Principal Commissioner of Central Tax, GST West Commissionerate. The petitioner sought to quash this order and stay any consequent recovery. The respondents were the Principal Commissioner and the Assistant Commissioner of Central Tax. The petition was filed under Articles 226 and 227 of the Constitution of India. The court heard both parties and perused the material on record. The judgment notes that the issue was directly covered by a previous judgment of a Co-ordinate Bench of the same court.
Held
The Court held that the present writ petition was disposed of in terms of the judgment of the Co-ordinate Bench in M/s. Karnataka Chinmaya Seva Trust. The Co-ordinate Bench had held that Orders-in-Original, when challenged in writ petitions, would stand set aside and the matters would be relegated to the designated officers to be reconsidered from the stage of the show-cause notice. Consequently, the impugned Order-in-Original dated July 10, 2024, was set aside, and the matter was remitted back for reconsideration to the stage of the show cause notice dated April 21, 2021. The petitioners were granted liberty to file their pleadings within a reasonable time fixed by the concerned officers. Any demands made pursuant to the impugned orders were also set aside.
Key Issues
1. Whether the Order-in-Original dated July 10, 2024, passed by the Principal Commissioner of Central Tax, GST West Commissionerate, is liable to be quashed and set aside? The petitioner argued for quashing the Order-in-Original and staying recovery proceedings. The respondents, represented by their counsel, presented their arguments. The court noted that the issue in controversy was directly and squarely covered by the judgment of a Co-ordinate Bench of the Karnataka High 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 July 3, 2024. The judgment does not explicitly detail the specific arguments made by each side beyond stating that several contentions were urged.
Sections Cited
None explicitly mentioned in the provided text, beyond the reference to the Order-in-Original and Show Cause Notice.
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:
“(a) Stay the impugned order-in-original bearing No.27/2024-25 (Pr.Commr.) (DIN 20240757YU000000E413) dated 10.07.2024 (Annexure – A) passed by the first respondent and consequent recovery that is likely to be initiated, in the interest of justice;
(b) Pass any such order in the facts and circumstances of he case.”
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 NC: 2025:KHC:9664 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 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 NC: 2025:KHC:9664 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.
Accordingly, the impugned Order-in-original at Annexure – A dated 10.07.2024 is hereby set aside and the matter is remitted back for reconsideration to the stage of show cause notice at Annexure-B dated 21.04.2021. Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
DS / SV CT: TSM List No.: 1 Sl No.: 4
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.