M/S. Scania Commercial Vehicles INDIA PVT. LTD. vs. State Of Karnataka
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks the following reliefs: “a) Issue a writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ or order or direction under Article 226 of the Constitution of India quashing Show Cause Notice No. JCCT (VIG)/ACCT-4/GST/ADJN-1261/2023-24 1941 dated 29.09.2023 issued for the period July 2017 - March 2018 by Respondent No. 2 enclosed as Annexure A1 and Show Cause Notice No. JCCT (VIG)/ACCT- 4/GST/ADJN-1262/2023-24/1940 dated 29.09.2023 issued for the period April 2018 - March 2019 by Respondent No. 2 enclosed as Annexure A2; b) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require.” NC: 2024:KHC:34733
The petitioner is involved in the business of manufacturing and assembly of tipper trucks, trading of spare parts and engines and also provides repair and maintenance service in relation to its products. The respondents are the State GST Authorities under the Karnataka Goods and Services Act, 2017 (KGST Act). The petitioner seeks quashing of the impugned Show Cause Notices at Annexure — A1 and A2 both dated 29.09.2023 issued by respondent No.2 and for other reliefs.
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 demand made by the respondents calling upon the petitioner to pay interest on belated payment of IGST under Reverse Charge Mechanism (RCM) was illegal and arbitrary and contrary to the provisions contained in Sections 128-A and 13(3)(c) of the CGST Act, 2017 and the Judgment of this Court in the case of M/s. Autoliv India Private Limited Vs. Union of India and others - W.P.No.26129/2023 dated 21.08.2024, and the same deserves to be quashed. It is also NC: 2024:KHC:34733 submitted that the impugned Show Cause Notices alleging that the petitioner was liable to pay ineligible IGST — ITC availed and utilised by it together with interest was also illegal and arbitrary and contrary to the Circular bearing No. 211/5/2024-GST dated 26.06.2024 issued by the Central Board of Indirect taxes and Customs, New Delhi as well as the judgments of this Court in the case of Bosch Limited Vs. State of Karnataka and others - 2024 VIL-828- Karnataka and Ors - W.P.No.478/2024 dated 29.07.2024 and the impugned Show Cause Notices deserve to be quashed on this ground also.
Per contra, learned AGA for the respondents submits that if the petitioners submit a reply along with necessary documents to the impugned Show Cause Notices at Annexure-A1 and A2, the concerned respondents would consider the same and proceed further in accordance with law.
Having heard the counsels for both the Parties and upon perusing the facts on record, in my view the demand of IGST along with interest is to be decided in the light of the findings of this Court in the case of M/s. Autoliv India supra. The question of payment on NC: 2024:KHC:34733 interest is to be considered in the light of Section 128A and Section 13(3)(c) of the CGST Act, 2017. 7. Having heard the Counsel for the Parties and perusing the facts on record, in my view the issue regarding admissibility of input tax by invoking Section 16(4) of the CGST Act, 2017 is covered by the Judgment of this Court in the cases of Bosch and Musashi (supra) read with Circular No. 211/5/2024-GST dated 26/6/2024. In my view, the input tax credit has been validly availed in terms of the decisions and Circular referred to supra.
In view of the aforesaid facts and circumstances, I deem it just and appropriate to dispose of this petition by issuing certain directions.
In the result, I pass the following: ORDER (i) Petition is hereby disposed of. (ii) The petitioner is reserved with liberty to submit a reply along with documents to the impugned Show Cause Notices at Annexures - NC: 2024:KHC:34733 A1 and A2 dated 29.09.2023 within a period of three weeks from the date of receipt of a copy of this order. (iii) The concerned respondents shall consider the said reply and documents to be submitted by the petitioner and proceed further in accordance with law after providing sufficient and reasonable opportunity of hearing to the petitioner and bearing in mind the observations made in this order as well as the relevant statutory provisions, circulars, judgments, contentions, etc., relied upon by the petitioner and pass appropriate orders within a period of four weeks from the date of receipt of the Reply to be filed by the petitioner. (S.R.KRISHNA KUMAR) JUDGE
MDS / SV List No.: 2 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.