M/S. Unishire Homes LLP vs. State Of Karnataka - Karnataka High Court, 10 September 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:36903 WP No. 18776 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. 18776 OF 2024 (T-RES) BETWEEN: M/S. UNISHIRE HOMES LLP., A LIMITED LIABILITY PARTNERSHIP FIRM, AND HAVING ITS REGISTERED OFFICE AT, NO. 42, CASTLE STREET, ASHOK NAGAR, BENGALURU - 560 025. REP BY ITS AUTHORIZED SIGNATORY, SRI. PRATIK K MEHTA. …PETITIONER (BY SRI. G S VENKAT SUBBA RAO,ADVOCATE) AND: 1. STATE OF KARNATAKA REP BY ITS PRINICIPAL SECRETARY, DEPARTMENT OF FINANCE, GOVT OF KARNATAKA, VIDHANA SOUDHA, BENGALURU - 560 001. 2. THE COMMISSIONER OF COMMERCIAL TAXES VANIJYA THERIGE KARYALAYA, GANDHINAGAR, BANGALORE – 560 009. 3. THE ASSISTANT COMMISIONER OF COMMERCIAL TAXES (AUDIT) -1.1. DGSTO -01, 3RD FLOOR, BMTC BUILDING, YESHWANTHPURA, BANGALORE - 560 022. 4. THE COMMERCIAL TAX OFFICE ENFORCEMENT NORTH ZONE, BMTC BUILDING, 3RD FLOOR, YESHWANTHPURA, BANGALORE - 560 022. …RESPONDENTS (BY SRI.K HEMA KUMAR, AGA) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:36903 WP No. 18776 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED

ORDER OF ADJUDICATION DATED 13/09/2023, BEARING NO. ACCT/(A)-1.1/GST/DRC-7/20-T.NO. 895/2023-24, PASSED BY THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)1.1 I.E. 3RD RESPONDENT HEREIN, VIDE ANNEXURE-A.

THIS WRIT 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 quashing the impugned Order of Adjudication dated 13.09.2023, bearing No. ACCT/(A)-1.1/GST/DRC-7/20/T.No.895/2023-24, passed by the Assistant Commissioner of Commercial Taxes (Audit)-1.1 i.e., 3rd respondent herein, vide Annexure-A;

b) Issue such other order or directions as this Hon’ble Court deems fit to grant under the circumstances of the case, including costs, in the interest of justice and equity.”

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 invited my attention to the impugned Order of Adjudication passed under Section 73(9) of the NC: 2024:KHC:36903 CGST/KGST Act, 2017 (for short “the said Act”) in order to point out that the said order has not only been passed in violation of principles of natural justice, but also not provided/granted opportunity of personal hearing, which is contrary to Section 75(4) of the said Act and consequently, the impugned order being contrary to the facts as well as law and the judgment of this Court in the case of M/s. Bangalore Golf Club Vs. Commercial Tax Officer (Enforcement)-50 and others – W.P.No.8050/2024 dated 05.06.2024, the impugned order deserves to be set aside and the matter be remitted back to the concerned respondents for reconsideration afresh in accordance with law.

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

As rightly contended by learned counsel for the petitioner, a perusal of the impugned order will indicate that an opportunity of personal hearing as required under Section 75(4) of the said Act has not been provided/granted in favour of the petitioner, in the light of the judgment of a co-ordinate Bench of this Court in the case of M/s. Bangalore Golf Club (supra), I deem it just NC: 2024:KHC:36903 and appropriate to set aside the impugned order and remit the matter back to the concerned respondents for reconsideration afresh in accordance with law.

In the result, I pass the following: ORDER i. The Writ Petition is allowed. ii. The impugned Order of Adjudication at Annexure-A dated 13.09.2023 passed by respondent No.3 is hereby quashed. iii. The matter is remitted back to respondent No.3 for reconsideration afresh in accordance with law. iv. Petitioner is at liberty to submit pleadings, documents etc., before respondent No.3, who shall consider the same and provide an opportunity of personal hearing to the petitioner and pass appropriate order/take appropriate decision in accordance with law. v. The petitioner undertakes to appear before respondent No.3 on 30.09.2024. (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 1 Sl No.: 33