T Vajrappa vs. State Of Karnataka

WP/770/2024HC KarnatakaGSTCNR KAHC01001272202406 November 2024Bench: S SUNIL DUTT YADAV4 pages

For Petitioner: SRI. NAVUDURI SATHYA VIJAYANTH BABU., ADVOCATEFor Respondent: SRI. K. HEMAKUMAR, HCGP FOR R1; SRI B.V. MURALIDHAR, ADVOCATE FOR R2; SMT PREETHA MAHADEVAN, ADVOCATE FOR R3; SRI SHISHIRA AMARNATH, ADVOCATE FOR R4 TO R6

AI SummaryRemanded

Facts

The petitioner, T Vajrappa, filed a writ petition challenging a show cause demand notice issued by the Principal Commissioner of Central Tax, Bengaluru West Commissionerate. The notice, dated April 29, 2022, sought to demand service tax of Rs. 4,39,17,732 for the period October 2016 to June 2017. The respondents, including the State of Karnataka, Bruhat Bengaluru Mahanagara Palike, Union of India, CBIC, DG GST (Intelligence), and the Commissioner of Central Tax, were arrayed. The petitioner sought to quash this demand notice. The case was heard by the High Court of Karnataka.

Held

The Court noted that in the statement of objections filed by respondents 3 to 6, it was stated that the adjudicating authority, the Principal Commissioner of Central Tax, Bengaluru West Commissionerate, had dropped the proceedings initiated under the show cause notice. This decision was made vide Order-in-Original No. 18/2024-25 dated 13.06.2024, based on the submission of the petitioner's authorized representative and the furnishing of the proprietor's death certificate, referencing the Supreme Court's decision in Shabina Abraham [2017 (50)STR 241 (SC)]. Consequently, the Court found no further cause for adjudication and disposed of the matter.

Key Issues

1. Whether the show cause demand notice bearing SCN No. 9/2022-23/WD-6/4279/A dated 29/04/2022, issued by the Principal Commissioner of Central Tax, Bengaluru West Commissionerate, demanding service tax of Rs. 4,39,17,732 for the period October 2016 to June 2017, is liable to be quashed? The petitioner argued for quashing the notice. The revenue's contention was not explicitly recorded in terms of argument, but their subsequent action indicated their stance. The issue hinges on the validity and continuation of the demand proceedings.

Sections Cited

Not specified

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:45084 WP No. 770 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 770 OF 2024 (T-RES) BETWEEN: 1. T VAJRAPPA S/O DODDA THIMMARAYAPPA AGED ABOUT 70 YEARS NO.133, SOUMYA NILAYA PILEKAMMA TEMPLE STREET THALAGHATAPURA KANAKAPURA MAIN ROAD BENGALURU - 560 062 … PETITIONER (BY SRI. NAVUDURI SATHYA VIJAYANTH BABU., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS CHIEF SECRETARY ROOM NO 320, 3RD FLOOR VIDHANA SOUDHA DR AMBEDKAR VEEDHI BENGALURU - 560 001 2. BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE BENGALURU - 560 002 REPRESENTED BY ITS COMMISSIONER 3. UNION OF INDIA BY ITS DEPARTMENT OF REVENUE Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:45084 WP No. 770 of 2024 MINISTRY OF FINANCE GOVERNMENT OFFICE NEHRU PLACE, NEW DELHI REPRESENTED BY ITS SECRETARY 4. CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS NORTH BLOCK NEW DELHI - 110 001 REPRESENTED BY ITS CHAIRMAN 5. THE DIRECTOR GENERAL OF GST (INTELLIGENCE) BENGALURU ZONAL UNIT O/O THE PRINCIPAL ADDL DIRECTOR GENERAL NO. 112, S P ENCLAVE K H ROAD BENGALURU - 560 027 REPRESENTED BY ITS PRINCIPAL ADDL DIRECTOR GENERAL 6. THE OFFICE OF THE COMMISSIONER OF CENTRAL TAX BENGALURU WEST COMMISSIONERATE 1ST FLOOR, BMTC BUILDING BANASHANKARI, KANAKAPURA MAIN ROAD BENGALURU - 560 070 REPRESENTED BY PRINCIPAL COMMISSIONER … RESPONDENTS (BY SRI. K. HEMAKUMAR, HCGP FOR R1; SRI B.V. MURALIDHAR, ADVOCATE FOR R2; SMT PREETHA MAHADEVAN, ADVOCATE FOR R3; SRI SHISHIRA AMARNATH, ADVOCATE FOR R4 TO R6) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH SHOW CAUSE DEMAND NOTICE (ANNEXURE-E), ISSUED BY THE R6, - 3 - NC: 2024:KHC:45084 WP No. 770 of 2024 BEARING SCN NO. 9/2022-23/WD-6/4279/A DATED 29/04/2022, DIN-20220457YU000000D05E ASKING THE PETITIONER AS TO WHY PAYMENT OF SERVICE TAX OF RS.4,39,17,732 FOR THE PERIOD FROM OCTOBER 2016 TO JUNE 2017 SHOULD NOT BE DEMANDED AND RECOVERED AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

In the statement of objections filed on behalf of respondent Nos.3 to 6 at para-7 reads as follows:- "

Based on the submissions of the authorised representative of the petitioner and furnishing of Death Certificate of the proprietor, the adjudicating authority i.e, the Principal Commissioner of Central Tax, Bangalore West Commissionerate, Bengaluru (Respondent-6) vide Order-in-Original No. 18/2024-25 dated 13.06.2024 has dropped the proceedings initiated under show cause notice No.9/2022-23 dated 29.04.2022, based on the decision of the Hon'ble Supreme Court in case of Shabina Abraham [2017 (50)STR 241 (SC)]." NC: 2024:KHC:45084 WP No. 770 of 2024

In light of the same, no cause continues for adjudication in the present matter. Accordingly, the matter is disposed off. (S SUNIL DUTT YADAV) JUDGE VGR

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.