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M/S Gogga Gurusanthiah And Brothers vs. The Additional Commissioner Of Central Tax Belagavi

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WP/102841/2024HC KarnatakaGSTCNR KAHC02008131202414 February 2025Bench: M.NAGAPRASANNA5 pages
For Petitioner: SRI H.R.KAMBIYAVAR, ADVOCATEFor Respondent: SRI SHARAD V. MAGADUM, AGA FOR R3; SMT. CHETANA S. BIRAJ, ADVOCATE FOR R1 & R2

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Heard together (2 matters)

WP No. 103324 of 2024
WP No. 102841 of 2024

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC-D:3040 WP No. 103324 of 2024 C/W WP No. 102841 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 14TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO.103324 OF 2024 (T-RES) C/W WRIT PETITION NO.102841 OF 2024 IN W.P.NO.103324/2024: BETWEEN: M/S SHREE ENTERPRISES, INCORPORATED UNDER THE PARTNERSHIP ACT REPRESENTED BY ITS PARTNER SRI VIJAY H. PATEL, AGED ABOUT 42 YEARS, DOOR NO. 89, 10TH WARD, JABHUNATHA ROAD, HOSPET – 583 201. …PETITIONER (BY SRI H.R.KAMBIYAVAR, ADVOCATE) AND: 1. COMMERCIAL TAX OFFICER (ENGORCEMENT )-3, HUDA BUILDING, ISR ROAD, HOSAPETE - 583 201. 2. UNION OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, THROUGH ITS SECRETARY (REVENUE), NORTH BLOCK, NEW DELHI - 110 001. 3. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE (GST WING), Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:3040 WP No. 103324 of 2024 C/W WP No. 102841 of 2024 REPRESENTED BY ITS SECRETARY, VIDHANA SOUDHA, BENGALURU - 560 001. …RESPONDENTS (BY SRI SHARAD V. MAGADUM, AGA FOR R3; SMT. CHETANA S. BIRAJ, ADVOCATE FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER OF ADJUDICATION DATED 31.01.2024 IN NO.CTO/ENF/HPT/U/S-73/2023-24 PASSED U/S 73(9) OF THE KGST ACT BY THE 1ST RESPONDENT (ANNEXURE- B), LEVYING CGST/KGST AT 18% ON ROYALTY FOR THE FOR THE FINANCIAL YEAR 2018-19, IN THE PETITIONERS CASE. ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI TO QUASH THE NOTIFICATIONS AND THE CIRCULAR INSTRUCTIONS THAT HAVE LED TO LEVY OF GST ON THE ROYALTY SPECIFICALLY INCLUDING CIRCULAR BEARING NO.164/20/2021-GST DATED 6.10.2021 VIDE ANNEXURE-F ISSUED BY RESPONDENT NO. 2. THE PETITIONER MOST RESPECTFULLY PRAYS THAT THIS HON’BLE HIGH COURT MAY BE PLEASED TO ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTIFICATIONS NO.FD 07 CSL 2022, DATED 12.07.2022 (ANNEXURE-K) ISSUED BY R-3 AND THE NOTIFICATION NO.FD 20 CSL 2023, DATED 06.04.2023 (ANNEXURE-L), ISSUED BY R- 3 IN THE PETITIONERS CASE, INSOFAR AS PETITIONER IS CONCERNED. THIS HON’BLE HIGH COURT MAY BE PLEASED TO DECLARE THAT THERE IS NO ELEMENT OF SERVICE RENDERED BY THE STATE IN GRANTING LICENSE FOR MINERAL EXPLORATION AND MINING RIGHTS AND CONSEQUENTLY THE LEVY OF GST IS CLEARLY ULTRA-VIRES THE ACT. IN W.P.NO.102841/2024: BETWEEN: M/S GOGGA GURUSANTHIAH AND BROTHERS NEAR SAHAKARI KALYANA MANTAPA, 31ST WARD DOOR NO 273, N C COLONY HOSPETE – 583 201, DIST: BALLARI, - 3 - NC: 2025:KHC-D:3040 WP No. 103324 of 2024 C/W WP No. 102841 of 2024 REP. BY IT’S PARTNER, SRI GOGGA VISHWANATH SWAMY S/O. GOGGA SARABHAIH, AGED ABOUT 51 YEARS. …PETITIONER (BY SRI H. R. KAMBIYAVAR, ADVOCATE) AND: 1. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX BELAGAVI, GST COMMISSIONERATE BELAGAVI, COMMISSIONER OF GST, AND CENTRAL EXCISE NO 71, CLUB ROAD, BELAGAVI – 590 001. 2. THE GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, THROUGH ITS SECRETARY (REVENUE) NORTH BLCOK, NEW DELHI – 110 001. 3. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE (GST WING), REPRESENTED BY ITS SECRETARY, VIDHANA SOUDHA, BENGALURU – 560 001. …RESPONDENTS (BY SRI SHARAD V. MAGADUM, AGA FOR R3; SMT. CHETANA S. BIRAJ, ADVOCATE FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE 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 6.10.2021 VIDE ANNEXURE-D ISSUED BY RESPONDENT NO.2. ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI TO QUASH AN ADJUDICATING ORDER U/S. 73(1) R/W/S. 73(9) OF THE KGST ACT AND CGST ACT-2017 FOR THE FINANCIAL YEAR 2017-18, BEARING NO. GEXCOM/ADJN/GST/ADC/1284/2023-ADJN-O/O COMMISSIONER CGST-BELAGAVI, DTD. 08.12.2023, PASSED BY RESPONDENT NO.1 VIDE ANNEXURE- E, INSOFOR AS PETITIONER FIRM IS CONCERNED AND ETC., - 4 - NC: 2025:KHC-D:3040 WP No. 103324 of 2024 C/W WP No. 102841 of 2024 THESE WRIT PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THERIEN AS UNDER:

ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

1.

Learned counsel Shri H.R. Kambiyavar appearing for the petitioner submits that the issue in the lis stands answered by Nine Judges Bench of the Apex Court in Civil Appeal Nos.4056-4064/1999 disposed on 14th August 2024. 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 NC: 2025:KHC-D:3040 WP No. 103324 of 2024 C/W WP No. 102841 of 2024

July 2024 shall stand waived for all the assesses.”

2.

Learned counsel for the petitioner submits that the conclusions drawn are against the petitioner and in all fairness would submit that the petitions be disposed in terms of the said conclusion.

3.

Learned counsel Smt. Chetana S.Biraj appearing for the respondents also toe the lines of the learned counsel appearing for the petitioner.

4.

In that light, both these petitions stand disposed in the light of the afore-quoted conclusion of the Apex Court. Four weeks time is granted to the learned counsel Smt. Chetana S.Biraj to file power in favour of respondent Nos.1 and 2 in W.P. No.103324/2024. (M.NAGAPRASANNA) JUDGE VNP/CT-ASC List No.: 1 Sl No.: 64

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