Sri. Viregowda Sudhakar Reddy vs. Prl. Commissioner Of Central Tax
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The petitioner, Sri. Viregowda Sudhakar Reddy, filed a writ petition before the Karnataka High Court challenging an Order in Original dated 21.09.2022 passed by the Joint Commissioner of Central Tax (Respondent No. 2). The petitioner also sought to quash bank attachment notices dated 28.06.2024 and 01.07.2024 issued by the Principal Commissioner of Central Tax (Respondent No. 1) and Karnataka Bank (Respondent No. 3) respectively. The petitioner sought a direction for Respondent No. 2 to reconsider the matter in accordance with the directions issued by the High Court in a previous writ petition, WP.NO.11153/2023, and to lift the bank attachment over the petitioner's account.
Held
The Court held that the issue in controversy was directly and squarely covered by the judgment of a coordinate bench of the same High Court in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024. Following that precedent, the Court set aside the Orders-in-Original and relegated the matters to the designated officers for reconsideration from the stage of the show-cause notice. Consequently, the impugned Order in Original dated 21.09.2022 and the bank attachment notices dated 28.06.2024 and 01.07.2024 were quashed. The ratio decidendi is that challenges to Orders-in-Original, where the issue is covered by a prior High Court judgment, should be set aside and remanded for reconsideration from the show-cause notice stage to a designated officer.
Key Issues
1. Whether the Order in Original dated 21.09.2022 passed by the Joint Commissioner of Central Tax is liable to be quashed and the matter remanded for reconsideration in light of previous directions from this Court? 2. Whether the bank attachment notices dated 28.06.2024 and 01.07.2024 are liable to be quashed and the bank attachment lifted? The petitioner argued that the matter should be reconsidered in accordance with the directions issued by the High Court in WP.NO.11153/2023. The respondents, represented by the Principal Commissioner and Joint Commissioner of Central Tax, did not present specific arguments but were represented by counsel. The judgment notes that several contentions were urged by both sides, but the core issue was covered by a coordinate bench's judgment.
Sections Cited
None explicitly mentioned in the judgment text provided.
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. Issue a Writ of certiorari to quash the order in original dated 21.09.2022 bearing DIN NO.202220972MR000012171A Annexure-D passed by second respondent and direct the second respondents to reconsider the matter in accordance with the directions issued by this Hon'ble Court in WP.NO.11153/2023. b. Consequently, issue a writ of certiorari to quash the bank attachment notice dated 28.06.2024 bearing DIN- 2024065700000000BBBA issued by first respondent Annexure-E and 01.07.2024 bearing Ref.No.KBL/IND/2024- 25/or257 Annexure-El issued by third respondent NC: 2024:KHC:40912 respectively direct the second respondent lift the bank attachment issued over the petitioner's account in the third respondent bank.
c. Issue such other Writ or direction as this Hon'ble Court deem fit to grant in the facts and circumstances of the present 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. 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. NC: 2024:KHC:40912 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 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 show-cause notice at Annexures-E and E1 dated 28.06.2024 and 01.07.2024, the impugned order at Annexure-D dated 21.09.2022 are hereby quashed. NC: 2024:KHC:40912 Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
SS List No.: 1 Sl No.: 49
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.