Shri. Kanubhai Chimanlal Panchal vs. Additional Commissioner Of Centrax Tax

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WP/21064/2024HC KarnatakaGSTCNR KAHC01042453202423 September 2024Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI.THIRUMALESH M., ADVOCATEFor Respondent: SRI. AKASH B. SHETTY, ADVOCATE

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:39172 WP No. 21064 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21064 OF 2024 (T-RES) BETWEEN: 1. SHRI. KANUBHAI CHIMANLAL PANCHAL AGED ABOUT 70 YEARS, S/O SRI CHIMANLAL GOPALDAS PANCHAL PROPRIETOR OF M/S. R K ENGINEERS C/O JINDAL ALUMINIUM LTD 16TH KM, TUMKUR ROAD JINDAL NAGAR, BENGALURU-560073 …PETITIONER (BY SRI.THIRUMALESH M., ADVOCATE) AND: 1. ADDITIONAL COMMISSIONER OF CENTRAX TAX, GST COMMISSIONERATE, BANGALORE NORTH WEST, 2ND FLOOR, SOUTH WING BMTC BUS STAND COMPLEX, SHIVAJINAGAR BENGALURU-560 051. 2. THE COMMISSIONER OF CENTRAL TAX (APPEALS-II) TTMC BMTC BUILDING, 4TH FLOOR OLD AIRPORT ROAD, DOMLUR, BENGALURU-560071. …RESPONDENTS (BY SRI. AKASH B. SHETTY, ADVOCATE) Digitally signed by DEVIKA M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:39172 WP No. 21064 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE BEARING FILE NO.GEXCOM/AE/VRFN/TPD/1015/2020/AE/2340/21, DIN. 20210457YX000082348B, SCN NO.18/ADC/NWD3/ST/2021 DTD.27.04.2021 ISSUED BY THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, GST COMMISSIONERATE, BANGALORE NORTH WEST, BENGALURU THE R-1 HEREIN, IN THE CASE OF THE PETITIONER-ANNX-B. QUASH THE ORDER-IN-ORIGINAL DATED 10.08.2022 PASSED IN NO.16/ADC/BNW/2022/BNW BEARING DIN NO.20220857YX00007227F0 FOR THE TAX PERIODS IN THE FINANCIAL YEARS 2015-16, 2016-17 AND FROM APRIL 2017 TO JUNE 2017 UNDER SECTIONS 73(1), 75, 77 AND 78 OF THE FINANCE ACT, 1994 LEVYING TAX, INTEREST AND PENALTY, PASSED BY THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, THE R-1 HEREIN IN THE CASE OF THE PETITIONER-ANNX-D. QUASH THE ORDER-IN- APPEAL (OIA) IN APPEAL NO.326/2023-24 CT DTD. 22.12.2023 PASSED THE COMMISSIONER OF CENTRAL TAX (APPEALS-II) THE R-2 HEREIN FOR THE TAX PERIODS IN THE FINANCIAL YEARS 2015-16, 2016-17 AND FROM APRIL 2017 TO JUNE 2017 UNDER THE FINANCE ACT, 1994, PASSED BY THE R-2 HEREIN, IN THE CASE OF THE PETITIONER ANNX-E. QUASH THE RECTIFICATION

ORDER 04-03-2024 IN FILE NO.GAPPL/COM/STP/3013/2022-APPEAL- O/O COMMR-CGST- APPL-II-BENGALURU IN APPEAL NO.326/2023-24 CT DTD. 22.12.2023 PASSED THE COMMISSIONER OF CENTRAL TAX (APPEALS-II), THE R-2 HEREIN, FOR THE TAX PERIODS IN THE FINANCIAL YEARS 2015-16, 2016-17 AND FROM APRIL 2017 TO JUNE 2017 UNDER THE FINANCE ACT, 1994 PASSED BY THE R-2 HEREIN IN THE CASE OF THE PETITIONER ANNX- G.GRANT AN INTERIM ORDER TO STAY RESTRAINING THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, GST COMMISSIONERATE, BANGALORE NORTH WEST, BENGALURU THE R-1 HEREIN, FROM TAKING FURTHER ACTION PURSUANT TO THE ORDER-IN-ORIGINAL DTD. 10.08.2022 PASSED IN NO.16/ADC/BNW/2022, BEARING DIN NO.20220857YX00007227F0 FOR THE TAX PERIODS IN THE FINANCIAL YEARS 2015-16, 2016-17 AND FROM APRIL 2017 TO JUNE 2017 UNDER SECTIONS 73(1), 75, 77 AND 78 OF THE FINANCE ACT, 1994-ANNX-D UNTIL DISPOSAL OF THIS WRIT PETITION. NC: 2024:KHC:39172 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: “(i) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the notice bearing File No.GEXCOM/AE/VRFN/TPD/1015/2020/AE/2340/ 21, DIN:20210457YX000082348B, SCN No.18/ADCNWD3/ST/2021 dated 27-04-2021 issued by the Additional Commissioner of Central Tax, GST Commissionerate, Bangalore North West, Bengaluru, the first respondent herein, in the case of the petitioner-ANNEXURE-B;

(ii) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Order-im- Original dated 10.08.2022 passed in No.16/ADC/BNW/2022/BNW bearing DIN No.20220857YX00007227F0 for the tax periods in the financial years 2015-16, 2016-17 and from April 2017 to June 2017 under Sections 73(1), 75, 77 and 78 of the Finance Act, 1994 levying tax, interest and penalty, passed by the Additional Commissioner of Central Tax, the first respondent herein in the case of the petitioner-ANNEXURE-D;

(iii) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Order-in- Appeal (OIA) in Appeal No.326/2023-24 CT dated 22-12-2023 passed by the Commissioner of Central Tax (Appeals-II), the second respondent herein, for the tax periods in the financial years 2015-16, 216-17 and from April 2017 to June 2017 under the Finance Act, 1994, passed by the NC: 2024:KHC:39172 second respondent herein, in the case of the petitioner-ANNEXURE-E;

(iv) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Rectification order 04-03-2024 in File No.GAPPL/COM/STP/3013/2022-APPEAL-O/o COMMR-CGST-APPLICATION-II-BENGALURU in Appeal No.326/2023-24 CT dated 22-12-2023 passed by the Commissioner of Central Tax (Appeals-II), the second respondent herein, for the tax periods in the financial years 2015-16, 2016-17 and from April 2017 to June 2017 under the Finance Act, 1994, passed by the second respondent herein, in the case of the petitioner- ANNEXURE-G;

(v) And grant such other relief or relief's as this Hon’ble Court may deem fit in the circumstances of the case, 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.

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; NC: 2024:KHC:39172 "

13.

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 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." NC: 2024:KHC:39172

4.

Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court.

5.

Accordingly, the impugned notice at Annexure-B dated 27.04.2021, impugned orders at Annexure-D dated 10.08.2022, Annexure-E dated 22.12.2023 and Annexure-G dated 04.03.2024 are hereby quashed.

Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE

ST List No.: 1 Sl No.: 18

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.