M/S Bangalore Electricity vs. The Principal Commissioner Of Central Tax
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Cause title — parties, addresses and appearances
ORDER IN ORIGINAL VIDE GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN 2023115700000000EDA8 IN ORDER NO. 27/ST/COMMR/2023 DATED 07/11/2023 PASSED BY THE R2 DATED 07.11.2023 REFERRED AS ANNEXURE-B. b) STAY THE RECOVERY OF DEMAND OF SERVICE TAX, INTEREST AND PENALTY MADE IN THE ORDER IN ORIGINAL VIDE GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN 2023115700000000EDA8 IN ORDER NO. 27/ST/COMMR/2023 DATED 07/11/2023 PASSED BY THE R2 REFERRED AS ANNEXURE-B AND ETC. NC: 2024:KHC:36037 AND 2 OTHERS
IN WP NO. 6141/2024 BETWEEN:
M/S. BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED REPRESENTED BY ITS EXECUTIVE ENGINEER (ELE)., O & M DIVISION KGF SRI P G RAMESH KUMAR, AGED ABOUT 47 YEARS, S/O SRI P V GOVINDACHETTY, O/O THE EXECUTIVE ENGINEER ELECTRICAL, BESCOM, O & M DIVISION, CHAMPION REEFS, K.G.F. - 563 117 ...PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE)
AND:
THE PRINCIPAL COMMISSIONER OF CENTRAL TAX OFFICE OF THE COMMISSIONER OF CENTRAL TAX, GST EAST COMMISSIONERATE, BENGALURU TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, BENGALURU - 560 071
THE COMMISSIONER OF CENTRAL TAX OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GST BENGALURU EAST, TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, BENGALURU - 560 071 ...RESPONDENTS (BY SRI. UNNIKRISHNAN M., ADVOCATE FOR R1 AND R2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND NC: 2024:KHC:36037 AND 2 OTHERS
227 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE SHOW CAUSE NOTICE IN NO. GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN NO. 20211057YT0000004F4AF AND NOTICE REFERENCE NO. 84/2021-22 DATED 25.10.2021 ISSUED BY THE R1 HEREIN MARKED AND REFERRED AS ANNEXURE-A AND ETC.
IN WP NO. 6144/2024 BETWEEN:
M/S BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED INDIRANAGAR DIVISION, REPRESENTED BY ITS EXECUTIVE ENGINEER (ELE)., SRI M SURESH, AGED ABOUT 50 YEARS, S/O LATE SRI MAHADEVAPPA, INDIRANAGAR DIVISION, BESCOM, BUILDING NO 6, BANGALORE 560038 ...PETITIONER (BY SRI. ANNAMALAI S.,ADVOCATE) AND:
THE PRINCIPAL COMMISSIONER OF CENTRAL TAX OFFICE OF THE COMMISSIONER OF CENTRAL TAX, GST EAST COMMISSIONERATE, BENGALURU TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, BENGALURU 560071
THE COMMISSIONER OF CENTRAL TAX OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GST BENGALURU EAST, TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, NC: 2024:KHC:36037 AND 2 OTHERS
BENGALURU - 560 071 ...RESPONDENTS (BY SRI. UNNIKRISHNAN M.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE SHOW CAUSE NOTICE IN NO. GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN NO. 20211057YT0000004F4AF AND NOTICE REFERENCE NO.
MARKED AND REFERRED AS ANNEXURE-A AND ETC. IN WP NO. 6149/2024 BETWEEN:
M/S BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED SUPPLY COMPANY LIMITED REPRESENTED BY ITS EXECUTIVE ENGINEER (ELE) CHICKBALLAPURA DIVISION SRI. ANAND KUMAR K AGED ABOUT 43 YEARS SON OF SRI. KRISHNA REDDY O/O THE EXECUTIVE ENGINEER ELECTRICAL BESCOM NO.2, OPP. HEAD POST OFFICE CHICKBALAPURA - 562 101 ...PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND:
THE PRINCIPAL COMMISSIONER OF CENTRAL TAX OFFICE OF THE COMMISSIONER OF CENTRAL TAX GST EAST COMMISSIONERATE BENGALURU TRAFFIC AND TRANSIT MANAGEMENT CENTRE BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU BENGALURU - 560 071 NC: 2024:KHC:36037 AND 2 OTHERS
THE COMMISSIONER OF CENTRAL TAX OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GST BENGALURU EAST TRAFFIC AND TRANSIT MANAGEMENT CENTRE BMTC BUS STAND HAL AIRPORT ROAD DOMMALURU BENGALURU 560 071 ...RESPONDENTS (BY SRI. UNNIKRISHNAN M.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE SHOW CAUSE NOTICE IN NO. GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN NO. 20211057YT0000004F4AF AND NOTICE REFERENCE NO.
MARKED AND REFERRED AS ANNEXURE-A AND ETC. IN WP NO. 6188/2024 BETWEEN:
M/S BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED REPRESENTED BY ITS EXECUTIVE ENGINEER (ELE)., O AND M CIRCLE, KOLAR, SHUBHA B N AGED ABOUT 42 YEARS, DAUGHTER OF S RI NARAYANA SWAMY B C O/O THE EXECUTIVE ENGINEER ELECTRICAL, CO AND M CIRCLE, MB ROAD, KOLAR 563101 ...PETITIONER (BY SRI. ANNAMALAI S.,ADVOCATE)
AND:
THE PRINCIPAL COMMISSIONER OF CENTRAL TAX OFFICE OF THE COMMISSIONER OF CENTRAL TAX, GST EAST COMMISSIONERATE, NC: 2024:KHC:36037 AND 2 OTHERS
BENGALURU TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, BENGALURU 560071
THE COMMISSIONER OF CENTRAL TAX OFFICE OF THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, GST BENGALURU EAST, TRAFFIC AND TRANSIT MANAGEMENT CENTRE, BMTC BUS STAND, HAL AIRPORT ROAD, DOMMALURU, BENGALURU - 560 071 ...RESPONDENTS (BY SRI. UNNIKRISHNAN M.,ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE SHOW CAUSE NOTICE IN NO. GEXCOM/ADJN/ST/COM/997/2021-ADJN, DIN NO. 20211057YT0000004F4AF AND NOTICE REFERENCE NO.
MARKED AND REFERRED AS ANNEXURE-A AND ETC.
THESE PETITIONS, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER In all these writ petitions, petitioners seek the following reliefs: i) Issue a writ of Certiorari quashing the show cause notice in No. GEXCOM/ADJN/ST/COM/997/2021- ADJN, DIN No. 20211057YT000000F4AF and NC: 2024:KHC:36037 AND 2 OTHERS
Notice Reference No. 84/2021- 22 dated 25.10.2021 issued by the Respondent No. 1 herein marked and referred as Annexure-A.
ii) Issue a writ of Certiorari quashing the Order in Original vide GEXCOM/ADJN/ST/COM/997/2021- ADJN, DIN- 2023115700000000EDA8 in Order No. 27/ST/Commr/2023 dated 07.11.2023 passed by the Respondent No. 2 herein marked and referred as Annexure-B.
iii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
A perusal of the material on record will indicate that the petitioner is none other than Bangalore Electricity Supply Company Limited and writ petitioners in the aforesaid five petitions are five different/distinct divisions of the petitioner/BESCOM viz., KGF Divison, Kolar Division, Chikkaballapur Division, Indiranagar Division and Shivajinagar Division. It is relevant to state that each one of the five divisions of the petitioner/BESCOM has an independent registration and each one has been filing returns separately without reference to one another. However, a perusal of the impugned Show Cause Notice will indicate that the respondent has issued by clubbing/consolidating all the demands of five NC: 2024:KHC:36037 AND 2 OTHERS
separate/independent/distinct divisions, which is impermissible in law since the different amounts claimed in the impugned Show Cause Notice in respect of five different divisions cannot be demanded under Section 73(1) of the Finance Act, 1994 read with Section 174 of CGST Act within extended period of limitation.
Under these circumstances, I am of the view that clubbing and consolidating all the demands in relation to five different/distinct divisions of the petitioner/BESCOM by including all the demands in one composite Show Cause Notice is impermissible in law especially when the amount demanded is in relation to 28 divisions of the BESCOM. It is also relevant to note that in addition to issuing the impugned Show Cause Notice respondent has also proceeded to issue the impugned order-in- original, which is also illegal, arbitrary as stated supra. As such, the impugned Show Cause Notice at Annexure-A and the impugned order in Original at Annexure-B deserves to be quashed reserving liberty to the respondent to take recourse to such remedy as may be available to them under law as against the petitioner including issuing to notices in accordance with law.
In the result, I pass the following: NC: 2024:KHC:36037 AND 2 OTHERS
ORDER i) The writ petitions are hereby allowed. ii) The impugned Show Cause Notice at Annexure - A dated 25.10.2021 is hereby quashed. iii) The impugned order-in-original at Annexure B dated 07.11.2023 is hereby quashed. iv) Liberty is reserved in favour of the respondent to take recourse to such remedies as available in law including issuing fresh Show Cause Notices subject to all just exceptions and defences available to the petitioner. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 1 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.