M/S Sri Om Traders vs. State Of Karnataka

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WP/26180/2024HC KarnatakaGSTCNR KAHC01054411202425 September 2024Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI. ATUL KRISHNA RAO ALUR, ADVOCATEFor Respondent: SRI. HEMA KUMAR K., AGA

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:39863 WP No. 26180 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26180 OF 2024 (T-RES) BETWEEN: M/S. SRI. OM TRADERS, OPP. SRINIDHI AUTO WORKS, I CROSS, G.S.K.M. ROAD, PANCHAVATI COLONY, SHIVAMOGGA - 577 202. (REPRESENTED BY ITS PROPRIETOR SIR, H.P. LAXMANA) …PETITIONER (BY SRI. ATUL KRISHNA RAO ALUR, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS FINANCE SECRETARY GOVERNMENT OF KARNATAKA, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU-560 001. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS) VANIJYA THERIGE BHAVANA, 12TH CROSS, 'A' BLOCK, GOPALA GOWDA EXTENSION, MALNAD DIVISION, SHIMOGA-577 205. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39863 WP No. 26180 of 2024 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-4, SUVARNA KARNATAKA VANIJYA THERIGE BHAVANA, NEAR 100 FF ROAD, 12TH CROSS, 'A' BLOCK. GOPALA GOWDA EXTENSION, SHIMOGGA 577 205. …RESPONDENTS (BY SRI. HEMA KUMAR K., AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ADJUDICATION PASSED U/S 74 OF THE KGST/CGST ACT, FOR THE AY 2018-19 AT ANNEXURE-C BEARING NO. ACCT(AUDIT-4) SMG/2023-24 DATED 31.08.2023 ISSUED BY THE R-3 IN SO FAR AS THE PETITIONER IS CONCERNED AND ETC. THIS 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, the petitioner is seeking the following reliefs: (a) Issue a writ of certiorari or writ in the nature of certiorari quashing the order of adjudication passed under Section 74 of the KGST / CGST Act for the Assessment year 2018-19, at Annexure-C, NC: 2024:KHC:39863 bearing No.ACCT (AUDIT-4):Smg:2023-24, dated 31.08.2023 issued by the respondent No.3 in so far as the petitioner is concerned. (b) Issue a Writ of Certiorari or writ in the nature of Certiorari quashing the demand notice in DRC-07 for the assessment year 2018-19, issued by respondent No.3 dated 31.08.2023, vide order No.288758 at Annexure-D, in so far as the petitioner is concerned. (c) Issue a Writ of Certiorari or Writ in the nature of Certiorari quashing the order passed under Section 107 of the KGST / CGST Act, for the assessment year 2018-19, at Annexure-F, in GST/AP No.85/203-24 dated 21.06.2024, issued by the respondent No.2 in so far as the petitioner is concerned. (d) Issue a Writ of Mandamus or Writ in the nature of mandamus directing the respondent No.2 to condone the delay and pass the orders on the merits of the case, in so far as the petitioner is concerned. (e) Issue a writ of mandamus or writ in the nature of mandamus directing the Senior Intelligence Officer, DGCI, BZU, Bengaluru to return the seized documents as per the seizure order dated NC: 2024:KHC:39863

08.02.

2020 in so far as the petitioner is concerned. (f) Issue writ of mandamus or writ in the nature of mandamus directing respondent No.2 to recover the input tax credit claimed by the petitioner from the registered supplier, in so far as the petitioner is concerned. (g) Issue any other directions as this Hon'ble Court deems fit to pass in the facts and circumstances of the case in the interest of justice, equity including the cost of the writ petition.

2.

A perusal of the material on record would indicate that aggrieved by the adjudication order dated 31.08.2023 passed under Section 74 of the KGST / CGST, Act by the Assistant Commissioner of Commercial Taxes (Audit)-4, Shivamoga for the assessment year 2018-19, the petitioner filed an appeal on 29.12.2023, which was well within extended / condonable period of limitation as contemplated under Section 107(1) & (4) of the KGST / CGST Act, which indicates that the petitioner had actually filed an appeal within the maximum condonable / extendable period of four months (3+1) months, which expired on 31.12.2024. NC: 2024:KHC:39863

3.

Despite the petitioner having filed the appeal within the aforesaid period of four months (3+1) as contemplated under Section 107 (1) & (4) of the KGST / CGST, Act, the respondent No.2 - appellate authority has dismissed the appeal as barred by limitation as well as on the ground of non deposit of the mandatory pre-deposit of 10%, aggrieved by which the petitioner is before this court by way of present appeal.

4.

A perusal of the impugned order would indicate that the appellate authority has dismissed the appeal on two grounds viz., firstly, the appeal is barred by limitation; secondly, the petitioner has not made the mandatory pre- deposit of 10%. As stated supra the finding of respondent No.2 that the appeal was barred by limitation was factually incorrect inasmuch as the appeal was filed on 29.12.2023 before expiry of 4 months (3+1) and consequently, the said finding regarding the appeal being barred by limitation by proceeding on a factually incorrect premise coupled with the fact that the affidavit for condonation of delay has not been considered by respondent No.2 - appellate authority warranting interference by this court in the present petition. NC: 2024:KHC:39863

5.

Insofar as the finding recorded by respondent No.2

as regards non payment of mandatory pre-deposit of 10% is concerned, the same would also have to be reconsidered by the respondent in accordance with law. In the result, the petition is hereby allowed. The order dated 31.08.2023 passed under Section 74 of the KGST / CGST passed by the Assistant Commissioner of Commercial Taxes (Audit)-4, Shivamoga for the assessment year 2018-19 is set aside. The delay in filing the appeal stands condoned. The matter is remitted back for re-consideration of the appeal on merits as well as non payment of deposit of 10% and in accordance with law. (S.R.KRISHNA KUMAR) JUDGE

SS List No.: 3 Sl No.: 7

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.