M/S Billionsmiles Hospitality Private Limited vs. Deputy Commissioner Of Commercial

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WP/20873/2024HC KarnatakaGSTCNR KAHC01042963202425 September 2024Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI T P MUTHANNA, ADVOCATEFor Respondent: SRI K HEMAKUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:39846 WP No. 20873 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. 20873 OF 2024 (T-RES) BETWEEN: M/S BILLIONSMILES HOSPITALITY PRIVATE LIMITED BASEMENT B-2, SNS ARCADE OLD AIRPORT ROAD BENGALURU - 560017 REP BY SHRI VIJAY ABHIMANYU R REGD UNDER KARNATAKA GST ACT 2017 …PETITIONER (BY SRI T P MUTHANNA, ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) - 5.2 DGSTO-5, 5TH FLOOR, B-BLOCK VTK-2, RAJENDRANAGARA KORAMANGALA, BENGALURU - 560047 2. COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA V.T.K BUILDING, KALIDASA MARG GANDHINAGAR, BENGALURU - 560009 …RESPONDENTS (BY SRI K HEMAKUMAR, AGA) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING NO.DCCT(AUDIT)-5.2/288421/GST/2022-23 OF Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39846 WP No. 20873 of 2024 ADJUDICATION DTD 14.04.2023 PASSED BY THE RESPONDENT NO.1 (ANNEXURE-A) 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 seeks the following reliefs: “(a) Call for the entire records leading to passing of the impugned order bearing No.DCCT(Audit)- 5.2/288421/GST/2022-23 of adjudication dated 14.04.2023 passed by Deputy Commissioner of Commercial Taxes (Audit)-5.2, respondent No.1 vide order U/S 73 of KGST ACT 2017 (Annexure-A). (b) Issue a direction to quash the order bearing No.DCCT(Audit)-5.2/288421/GST/2022-23 of adjudication dated 14.04.2023 passed by respondent No.1 (Annexure-A). (c) Issue direction to respondent no .1 to provide an opportunity for personal hearing to the petitioner as envisaged in law and also to produce their Books of accounts along with all the relevant records, documents, etc., to determine the legitimate GST liability, if felt necessary by remanding the matter to respondent No.1 to re-adjudicate the Tax liability. (d) Issue any other direction or order or writ as deemed just in the circumstances and the probabilities of the case and the same may kindly be considered in the interest of justice and equity.” NC: 2024:KHC:39846

2.

On perusal of the material on record would indicate that the respondent having initiated the proceedings, issued a show cause notice dated 13.03.2023 under Section 73(1) of the Karnataka Goods and Service Tax Act, 2017 and the petitioner did not submit any reply to the same nor contested the proceedings, as a result of which, respondent No.1 proceeded to pass an impugned exparte order dated 14.04.2023, which is assailed in the present petition. It is submitted that if the impugned order is set aside and the matter is remitted back to respondent No.1 by giving one more opportunity to the petitioner to submit his reply/response along with the documents to the show cause notice, the petitioner would do so and respondent No.1 may be directed to reconsider the matter afresh in accordance with law.

3.

Per contra, the learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

4.

On perusal of the impugned order and material available on record would indicate that the petitioner has undisputedly has not issued any reply to the show cause notice dated 13.03.2023, as a result, respondent No.1 has proceeded to NC: 2024:KHC:39846 pass the impugned order. In this context, in the light of the specific assertion on the part of the petitioner that he did not receive the aforesaid show cause notice and could not file a response along with the documents due to bonafide reasons, unavoidable circumstances and sufficient cause, it will be just and appropriate to adopt a justice oriented approach and in order to provide one more opportunity to the petitioner, set aside the impugned order and remit the matter back to respondent No.1 for reconsideration afresh in accordance with law.

5.

In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order at Annexure-A dated 14.04.2023 is hereby set aside. The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file a response, reply, pleadings, documents, etc., and the same shall be considered by respondent No.1 by giving sufficient and reasonable opportunity to the petitioner and provide the petitioner an NC: 2024:KHC:39846 opportunity of personal hearing and proceed further in accordance with law. (iv) The petitioner is directed to appear before respondent No.1 on 21.10.2024 without awaiting further notice. (S.R.KRISHNA KUMAR) JUDGE

SN

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.