M/S Ebony Automobiles PVT LTD vs. The Joint Commissioner Of Commercial Tax - Karnataka High Court, 22 August 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:33812 WP No. 19518 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19518 OF 2024 (T-RES) BETWEEN: M/S EBONY AUTOMOBILES PVT LTD., (A REGISTERED PRIVATE LIMITED COMPANY, ALSO REGISTERED UNDER THE PROVISIONS OF CGST/SGST ACT, 2017) 20TH KM, OLD MADRAS ROAD, BANGALORE 560 049. (REPRESENTED BY ITS MANAGING DIRECTOR SHRI. SANJAY M S/O MUNIRATHNA SHETTY, AGED ABOUT 57 YEARS) …PETITIONER (BY SRI. PRAKASH D., ADVOCATE FOR SRI. CHIDANANDA URS B G.,ADVOCATE) AND: THE JOINT COMMISSIONER OF COMMERCIAL TAX (APPEALS)-5, 2ND FLOOR, TTMC/BMTC BUILDING, SHANTHINAGAR, BANGALORE 560 027. …RESPONDENT (BY SRI.HEMAKUMAR., AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NO. ZD290324080194C DTD 28.03.2024 PASSED IN GST AP 221/2023-24 PASSED BY THE RESPONDENT IN ANNX-F ALONG WITH FORM GST APC OA DTD 28.03.2024 AT ANNX-F1 TO RESTORE THE APPEAL TO THE FILE OF RESPONDENT AND TO DIRECT THE RESPONDENT TO PROVIDE AN OPPORTUNITY OF PERSONAL HEARING AND TO PASS ORDER IN ACCORDANCE WITH LAW. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:33812 WP No. 19518 of 2024 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:

“(a) Issue a writ of Certiorari, or such other writ, order or direction as this Hon’ble court may deem fit and quash the impugned order No. ZD290324080194C dated: 28.03.2024 passed in GST.AP. 221/2023-24 passed by Respondent in Annexure-F; along with Form GST APL-04 dated: 28.03.2024 at Annexure-‘F1’;

(b) to restore the appeal to the file of Respondent and to direct the Respondent to provide an opportunity of personal hearing and to pass order in accordance with law.

(c) Pass such other order, make such other direction or writ as this Hon’ble High court may deem fit and appropriate in the facts and circumstances of the case, and in the interest of justice.”

Heard learned counsel for the petitioner and learned counsel for the respondent 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 in the proceedings initiated by the respondent against the petitioner, the Original Order dated 31.08.2023 was passed by the Assistant Commissioner of Commercial Taxes, aggrieved by which the petitioner filed an NC: 2024:KHC:33812 appeal, which was pending before the respondent-appellate authority. On 05.01.2024 and 30.01.2024, notices for personal hearing were uploaded in the GST portal, pursuant to which the petitioner submitted a representation/letter dated 06.02.2024, which was received by the respondent on 07.02.2024 and in the said letter/representation, the petitioner specifically requested the respondent to provide the personal hearing notice to the E-mails mentioned in the said letters. It is the grievance of the petitioner that instead of notifying the petitioner about the dates of personal hearing and without providing sufficient and reasonable opportunity to the petitioner, the respondent has proceeded to pass the impugned exparte order dismissing the appeal on the ground that the petitioner did not appear, thereby violating principles of natural justice and as such, the petitioner is before this Court by way of the present petition.

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

A perusal of the representation at Annexure-E dated 06.02.2024, which was served on the respondent on 07.02.2024 will indicate that the petitioner had subsequently requested the NC: 2024:KHC:33812 respondent to notify the petitioner about the date of personal hearing by intimating the same to the E-mail id of the petitioner as indicated in the said letter/representation. In this context, a perusal of the impugned order will indicate that despite referring to the aforesaid letter/representation received on 07.02.2024, the respondent did not notify the petitioner or to his E-mail id as stated in the said letter/representation and merely noticed that the petitioner remained absent on 20.02.2024 and 01.03.2024 and proceeded to pass the impugned exparte order, which is clearly in violation of the principles of natural justice warranting interference by this Court in the present petition and by adopting a justice oriented approach and in order to provide one more opportunity, the impugned order deserves to be set aside and the matter be remitted back to the concerned respondent for reconsideration afresh in accordance with law.

In the result, I pass the following: ORDER i. The Writ Petition is hereby allowed. ii. The impugned order at Annexure-F dated 28.03.2024 along with the impugned Form GST APL-04 dated NC: 2024:KHC:33812

28.03.

2024 at Annexure-F1 issued/passed by the respondent are hereby set aside. iii. The matter is remitted back to the respondent for reconsideration of the appeal afresh, which stands restored in terms of the present order and in accordance with law. iv. The petitioner undertakes to appear before the respondent on 12.09.2024 without awaiting further notice from the respondent. v. All rival contentions are kept open and no opinion is expressed on the same. (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 2 Sl No.: 26