Konnapalli Narayanaswamy vs. The Assistant Commissioner Of Central Tax
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The petitioner, Konnapalli Narayanaswamy Manjunatha Reddy, filed a writ petition before the High Court of Karnataka challenging an ex-parte order passed by the Assistant Commissioner of Central Tax (1st respondent). The order in question is OI No. 597/2023, dated October 17, 2023. The petitioner sought to set aside this order. The respondents are the Assistant Commissioner of Central Tax and the Superintendent of Central Tax. The judgment does not specify the tax period or the amount in dispute.
Held
The High Court held that the issue in controversy was directly and squarely covered by its co-ordinate bench's judgment in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax (WP No.11154/2023 & connected matters dated 03.07.2024). Following that precedent, the Court quashed the impugned ex-parte order dated 17.10.2023 passed by the first respondent. The reasoning was that the matter fell under the category of challenges to Orders-in-Original, which, as per the cited judgment, should be set aside and relegated to the designated officers for reconsideration from the stage of the show-cause notice. The petitioners were granted liberty to file their pleadings within a reasonable time fixed by the authorities. The ratio decidendi is that ex-parte orders in challenges to Orders-in-Original, when covered by the precedent in Karnataka Chinmaya Seva Trust, are to be set aside and remanded for fresh consideration from the show-cause notice stage.
Key Issues
1. Whether the ex-parte order passed by the Assistant Commissioner of Central Tax bearing OI No. 597/2023 dated 17.10.2023 is liable to be set aside? The petitioner contended that the ex-parte order should be quashed. The respondents, through their counsel, were present and heard. The Court noted that while several contentions were urged by both sides, the issue was directly covered by a previous judgment of a co-ordinate bench of the same High Court. The judgment does not detail the specific arguments made by either side beyond the general assertion that contentions were urged.
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, the petitioner seeks the following reliefs: “(a) Issue a writ of Certiorari or directions in the nature of Certiorari, to aside the impugned ex-parte order passed by the 1st respondent bearing OI No.597/23 file No.GEXCOM/AF/VRFN/TPD/1777/2021-D5 Order Sl.No.38/2023-24/DIN NO.20231057YX000000C214 dated 17.10.2023 vide Annexure-C. NC: 2024:KHC:41089 (b) Issue such other writ or orders as deemed fit in the circumstances of the case in the interest of justice and equity.”
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 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 NC: 2024:KHC:41089 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 ex-parte order at Annexure-C dated 17.10.2023 passed by first respondent is hereby quashed.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE
YN List No.: 3 Sl No.: 2
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.