Shri. Shivabasappa Mahalingappa Budihal vs. The Union Of INDIA
Original PDF →Facts
The petitioner, Shri. Shivabasappa Mahalingappa Budihal, represented by its proprietor, filed a writ petition before the Karnataka High Court, Dharwad Bench. The petition challenged an Order-in-Original dated 14.11.2022, bearing number BEL-EXCUS-000-DIV-RURAL-AC-RK-28-2022-23 (ST) and DIN-20221157TC000055205E, passed by the Assistant Commissioner of Central GST and Central Excise, Belgavi Rural Division (Respondent No. 4). The petitioner sought to quash this order as illegal and untenable, and also prayed for a declaration that it was passed without the authority of law and in contravention of the principles of natural justice. The respondents included the Union of India and various authorities under the Ministry of Finance.
Held
The Court held that the writ petition is disposed of in terms of the judgment of a coordinate bench of the High Court dated 03.07.2024 passed in Writ Petition No.11154 of 2023 and connected matters. Following the precedent set by the coordinate bench, the impugned order dated 14.11.2022 passed by the 4th respondent (Assistant Commissioner) in No.BEL/EXCUS/000/DIV/RURAL/AC/RK/28/2022-23(ST) and DIN-20221157TC000055205E, vide Annexure-C, was quashed. The coordinate bench's order had set aside Orders-in-Original and relegated matters to designated officers for reconsideration from the stage of the show-cause notice, allowing petitioners to file pleadings within a reasonable time. The ratio decidendi is that where a coordinate bench has decided a similar issue, subsequent benches should follow that precedent, especially when confirmed by the respondents.
Key Issues
1. Whether the Order-in-Original dated 14.11.2022, passed by the Assistant Commissioner of Central GST and Central Excise, Belgavi Rural Division, is illegal and untenable in law, and passed without the authority of law, in contravention of the principles of natural justice, as contended by the petitioner? The petitioner argued that the lis in the matter is covered by a judgment of a coordinate bench of the High Court dated 03.07.2024 in Writ Petition No.11154 of 2023 and connected matters. The respondents, specifically respondents No. 3 and 4, confirmed this submission. The judgment of the coordinate bench, referred to by the petitioner and confirmed by the respondents, dealt with challenges to Orders-in-Original.
Sections Cited
None explicitly mentioned in the provided text, but the context implies provisions related to Orders-in-Original and show-cause notices under GST law.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)
The petitioner is before this Court seeking for the following reliefs:
(a) A writ of certiorari, or a writ or order or direction in the nature of writ of certiorari and set aside the order-in-original vide No. BEL/EXCUS/000/BEL/CITY/AC/GS/66/2022-23 dated 19-07-2022, enclosed as Annexure-G passed by respondent no.2 as bad in law and (b) Issue a writ of certiorari, or a writ or order or direction in the nature of writ of certiorari and to hold that the order-in-original NO. BEL/EXCUS/000/BEL/CITY/AC/GS/66/2022-23 dated 19-07-2022, passed by assistant commissioner CTCE, NC: 2025:KHC-D:3777 Belagavi (respondent no.2) enclosed as Annexure-G was passed without the authority of law and (c) Issue a writ of mandamus or a writ or order or direction in the nature of writ mandamus by ordering the respondent no. 2 to not to collect or demand any tax, interest and penalty from the petitioner.
The submission of the learned counsel for the petitioner is that the lis in the matter is covered by a Judgment of the coordinate bench of this Court dated 03.07.2024 passed in Writ Petition No.11154 of 2023 (T-IT) and connected matters.
The learned counsel for the respondents No.3 and 4 also confirms the said submission.
The coordinate bench of this Court in the above said Judgement held in paragraph No.13 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 NC: 2025:KHC-D:3777 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 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 the impugned orders, such proceedings are also set aside.“
In that view of the matter, I pass the following : ORDER Writ petition is disposed off in terms of the above said judgement of a coordinate bench of this Court. Accordingly, the impugned order dated 14.11.2022 passed by the 4th respondent in No.BEL/EXCUS/ 000/DIV/RURAL/AC/RK/28/2022-23(ST) NC: 2025:KHC-D:3777 and DIN-20221157TC000055205E vide Annexure-C is quashed. (SURAJ GOVINDARAJ) JUDGE CKK CT:GSM List No.: 2 Sl No.: 34
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.