Sjr Prime Corporation Private Limited vs. The Superintendent Of Central Tax

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WP/26351/2024HC KarnatakaGSTCNR KAHC01053053202401 October 2024Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI. BALACHANDRAN B S., ADVOCATEFor Respondent: SRI.ARAVIND V CHAVAN., ADVOCATE

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:40847 WP No. 26351 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF OCTOBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26351 OF 2024 (T-RES) BETWEEN: SJR PRIME CORPORATION PRIVATE LIMITED SURVEY NO. 8/2, THE HUB, AMBALIPURA, BELLANDURU, SARJAPUR MAIN ROAD, BENGALURU RURAL BENGALURU – 560 103. GSTIN. 29AAOCS0238B1ZG. A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND REPRESENTED BY ITS DIRECTOR MR. JAYARAMA VIJAY REDDY S/O JAYARAMA REDDY, AGED ABOUT 47 YEARS, OCCUPATION. DIRECTOR RESIDING AT 8/2, 9, THE HUB, AMBALIPURA VILLAGE, BELLANDUR- SARJAPUR ROAD, SARJAPURA MAIN ROAD, BENGALURU (BANGALORE) URBAN - 560103. …PETITIONER (BY SRI. BALACHANDRAN B S.,ADVOCATE) AND: 1. THE SUPERINTENDENT OF CENTRAL TAX EED-8 RANGE DIVISION-8, GST COMMISSIONERATE, BENGALURU EAST, 2ND FLOOR, TTMC/BMTC BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU – 560 071. 2. THE ASSISTANT / DEPUTY COMMISSIONER OF CENTRAL TAX EASTERN DIVISION-8, GST COMMISSIONERATE, BENGALURU EAST, 5TH FLOOR, TTMC/BMTC BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU – 560 071. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:40847 WP No. 26351 of 2024 3. THE COMMISSIONER OF CENTRAL TAX EASTERN DIVISION -8, GST COMMISSIONERATE, BENGALURU EAST, 5TH FLOOR, TTMC/BMTC BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU 560 071. …RESPONDENTS (BY SRI.ARAVIND V CHAVAN.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE FOLLOWING ANNX-E- IMPUGNED NOTICE DTD 30.7.2024 ISUED BY THE R-2 TO THE PETITIONERS BANK UNDER SECTION 79(1)(C) OF THE CGST ACT IN GST DRC-13 IN NOTICE NO. 02/2023 (DRC-13) AND DIN 20240757000000000D2A AND II. DIRECTING DIRECT THE R-2 TO LIFT THE ATTACHMENT PLACED ON THE BANK ACCOUNT NO. 32445027247 OF THE PETITIONER MAINTAINED WITH SBI NO. 117 7TH BLOCK INDUSTRIAL LAYOUT, KORAMANGALA , BENGALURU - 560034 FOR RECOVERY OF THE OUTSTANDING INTEREST PAYABLE IN PURSUANT TO GARNISHEE NOTICE DTD 30.07.2024 ISSUED BY R-2 (ANNX-E). THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs: “ i) issue a writ of certiorari or any other writ as the Hon’ble High Court may deem fit and quash the following: ANNEXURE-E impugned notice dated 30.7.2024 issued by the Respondent No.2 to the Petitioner’s bank under section 79(1)(c) of the CGST Act in GST DRC-13 in Notice No.02/2023 (DRC-13) and DIN: 20240757000000000D2A. NC: 2024:KHC:40847 ii. To issue the writ of mandamus or any other appropriate writ in the nature of mandamus writ, order or direction directing direct the Respondent No.2 to lift the attachment placed on the bank account No.32445027247

of the Petitioner maintained with State Bank of India, No. 117, 7th Block Industrial Layout, Koramangala , Bengaluru - 560034 for recovery of the outstanding interest payable in pursuant to garnishee notice dated 30.07.2024 issued by Respondent No.2 (ANNEXURE-E).

iii) To issue any other order(s), direction(s), writ(s) or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;”

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3.

In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the impugned notice in GST DRC – 13 dated 30.07.2024 issued by respondent No.2 under Section 79(1)(c) of the CGST Act to the State Bank of India blocking/freezing the Bank account for the alleged demand in a sum of Rs.64,49,778/- is illegal, arbitrary and contrary to the NC: 2024:KHC:40847 principles of natural justice apart from being vitiated on account of non following of prescribed law prior to issuing notice invoking Section 79 of the CGST Act and as such, the impugned order at Annexure-E deserves to be quashed.

4.

Per contra, learned counsel for the respondent on instructions submits that respondent has followed the procedure prescribed in law before issuing the notice, which does not warrant interference by this Court.

5.

Though several contentions have been urged by both sides with regard to compliance/non compliance of the mandatory prescribed by the CGST Act prior to issue of notice, without expressing any opinion on the merits/demerits of the rival contentions and in order to provide one more opportunity to the petitioner to submit his reply to the alleged demand made in Annexure-E, I deem it just and appropriate to dispose of this petition directing the petitioner to appear before respondent No.2 on 14.10.2024 and to proceed further in accordance with law.

6.

In the result, I pass the following: NC: 2024:KHC:40847 ORDER

i) Petition is hereby disposed of. ii) Petitioner is directed to appear before respondent No.2 on 14.10.2024. iii) On that day, i.e., 14.10.2024, respondent shall furnish copies of notices/intimations/documents etc., which have come into existence prior to Annexure-E dated 30.07.2024 to the petitioner. iv) Upon the respondents furnishing the said documents to the petitioner, petitioner shall submit reply to the same, pursuant to which respondent No.2 shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. v) It is further directed that blocking/freezing of the Bank account of the petitioner in State Bank of India, Koramangala shall stand vacated except to the extent of alleged demand subject to the condition that the petitioner shall maintain NC: 2024:KHC:40847 minimum balance of Rs.64,49,778/- till disposal of proceedings by respondent No.2, who shall conclude the proceedings within a period of one month from 14.10.2024. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 1 Sl No.: 12

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.