M/S Sunil Traders vs. State Of Karnataka - Karnataka High Court, 10 September 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:37938 WP No. 19589 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19589 OF 2024 (T-RES) BETWEEN: 1. M/S SUNIL TRADERS, (PROPRIETARY CONCERN), HAVING ITS OFFICE AT NO 59, GROUND FLOOR, JYOTHI NILAYAM, DR AMBEDKAR MAIN ROAD, MAHESHWARI NAGAR, MAHADEVAPURA, BENGALURU 560048, REPRESENTD BY ITS PROPRIETOR, MR G SUNIL GOWDA. …PETITIONER (BY SRI BHARATH KUMAR V, ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY ITS COMMISSIONER, COMMERCIAL TAXES DEPARTMENT, GOODS AND SERVICE TAX (GST), VANIJYA THERIGE KARYALAYA -1, 1ST MAIN ROAD, GANDHINAGAR, BENGALURU - 560009. 2. COMMRCIAL TAX OFFICER, LGSTO – 036, BENGALURU, HAVING ITS OFFICE AT NO.58, 2ND FLOOR, 100 FEET ROAD, 6TH MAIN, INDIRANAGAR, BENGALURU - 560038. …RESPONDENTS (BY SRI HEMAKUMAR K, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE

ORDER DTD. 18.01.2024 BEARING SI.NO.21/ASTM-13/2023-24 LEELAVATHI S R Location: HIGH COURT OF KARNATAKA NC: 2024:KHC:37938 ISSUED UNDER SECTION 62 OF THE CGST/KGST ACT, 2017 (ANNX-A) AND ETC.

THIS PETITION COMING ON FOR PRELIMINARY HEARING, 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. Issue a writ in the nature of certiorari or any other appropriate writ, order or direction quashing the order dated 18.01.2024 bearing Sl.No.21/ASTM-13/2023-24 issued under Section 62 of the CGST/KGST Act, 2017 (Annexure-A).

b. Issue a writ in the nature of certiorari or any other appropriate writ, order or direction quashing the order dated 15.02.2024 bearing Sl.No.27/ASTM-13/2023-24 issued under Section 62 of the CGST/KGST Act, 2017 (Annexure-B). c. Grant such other relief that this Hon’ble Court may deem fit in the facts of the present matter.”

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

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 petitioner obtained GST registration on 18.01.2024. However, since the petitioner did not NC: 2024:KHC:37938 file his GST returns within the prescribed period, the respondents initiated proceedings under Section 62 of the Central Goods and services Act, 2017 (for short “the CGST Act”), which culminated in the impugned order at Annexure-A dated 18.01.2024 and Annexure-B dated 15.02.2024, pursuant to which the respondents have issued Form No.GST/DRC-13 dated 02.05.2024 attaching the bank account of the petitioner in the HDFC Bank and as such, the petitioner is before this Court by way of the present petition.

Learned counsel for the petitioner further submits that if reasonable time is granted, the petitioner would file his GST returns and accordingly, the impugned orders may be set aside and the respondents be directed to consider the GST returns to be filed by the petitioner and thereafter, proceed further in accordance with law. It is further submitted that till the respondents considers the GST returns of the petitioner and proceed further in accordance with law, the respondents are directed not to recover any monies from the bank account of the petitioner.

Per contra, learned AGA for the respondents would support the impugned order and submits that there is no merit in the writ petition and the same is liable to be dismissed. NC: 2024:KHC:37938

Though several contentions have been urged by both sides in support of their rival contentions, in the light of the specific submission made by the petitioner that if reasonable time is granted, the petitioner would submit his GST returns and in the light of the provisions contained in Section 62(2) of the CGST Act as well as the specific direction issued by the respondents in the impugned order, I deem it just and appropriate to set aside the impugned order and direct the petitioner to file GST returns within a period of three weeks from the date of receipt of a copy of this order. In the event the petitioner submits/files returns as stated supra, the respondents shall receive the same and proceed further and pass appropriate order in accordance with law. It is further directed that till the respondents pass appropriate orders on the returns to be filed by the petitioner pursuant to the present order, the respondent shall not take steps to recover monies lying in the account of the petitioner in HDFC Bank account.

In the result, I pass the following: ORDER i. The Writ Petition is hereby allowed. NC: 2024:KHC:37938 ii. The impugned orders at Annexures-A and B dated 18.01.2024 and 15.02.2024 respectively, are set aside. iii. The matter is remitted back to the concerned respondents for reconsideration afresh in accordance with law. iv. The petitioner is directed to file GST returns within a period of three weeks from the date of receipt of a copy of this order. v. In the event the petitioner submits/files returns as stated supra, the respondents shall receive the same and proceed further and pass appropriate order in accordance with law. vi. It is further directed that till the respondents pass appropriate orders on the returns to be filed by the petitioner pursuant to the present order, the respondent shall not take steps to recover monies lying in the account of the petitioner in HDFC Bank account. (S.R.KRISHNA KUMAR) JUDGE BMC: List No.: 1 Sl No.: 34