BharatTaxGST

M/S Redroom Technology Private Limited vs. Union Of INDIA

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WP/18868/2024HC KarnatakaGSTCNR KAHC01038454202414 August 2024Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. KASHISH KUMAR GUPTA, SMT. NEHA ATUL ALUR AND SRI APRAMEYA K, ADVOCATESFor Respondent: SMT. NAYANA TARA B.G., CGC FOR R1; SRI. HEMA KUMAR K., AGA FOR R2 AND R3

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:32916 WP No. 18868 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 18868 OF 2024 (T-RES) BETWEEN: M/S REDROOM TECHNOLOGY PRIVATE LIMITED 141/2, 13TH CROSS, RAMA TEMPLE ROAD, DOMLUR VILLAGE, BENGALURU URBAN KARNATAKA-560071 REPRESENTED THROUGH ITS AUTHORIZED REPRESENTATIVE MR HARRY SEHRAWAT, DIRECTOR AND SHAREHOLDER …PETITIONER (BY SRI. KASHISH KUMAR GUPTA, SMT. NEHA ATUL ALUR AND SRI APRAMEYA K, ADVOCATES) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY, (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001 2. THE STATE OF KARNATAKA REPRESENTED BY THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU-560001. Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:32916 WP No. 18868 of 2024 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES BENGALURU, DGTO5 LGSTO-46 RAKITHA COMPLEX NO. 174 9TH CROSS, 1ST STAGE, INDIRANAGARA BANGALORE-560038. …RESPONDENTS (BY SMT. NAYANA TARA B.G., CGC FOR R1; SRI. HEMA KUMAR K., AGA FOR R2 AND R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 31.3.23 (ANNEXURE-R) CANCELLING THE GST REGISTRATION OF THE PETITIONER AS BEING NON SPEAKING AND BAD IN LAW, AND OR QUASH THE IMPUGNED NOTICE DATED 17.1.23 (ANNEXURE-P) FOR THE CANCELLATION OF GST REGISTRATION OF THE PETITIONER AS BEING VAGUE AND IN CONTRAVENTION OF SECTION 29 OF KGST ACT. THIS PETITION, COMING ON FOR ORDERS, 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:

"i) To issue an appropriate writ, order, direction quashing the impugned order dated 31.03.2023 (ANNEXURE-R) canceling the GST registration of the Petitioner as being non-speaking and bad in law; and/or

ii) To issue an appropriate writ, order, direction quashing the impugned notice dated 17.01.2023 NC: 2024:KHC:32916 (ANNEXURE-P) for the cancellation of GST Registration of the Petitioner as being vague and in contravention of section 29 of the KGST Act."

2.

Heard the learned counsels for the parties and perused the material on record.

3.

The learned counsel for the petitioner submits that pursuant to the Show Cause Notice at Annexure - P dated 17.01.2023, the petitioner has engaged the services of a Consultant/Accountant, who was not in a position to procure necessary documents and submit a reply, as a result of which, the respondent No.3 has proceeded further and passed an impugned order in violation of principles of natural justice and as such, the impugned order passed by the respondent No.3 deserves to be set aside and the cancellation of the GST registration of the petitioner deserves to be restored.

4.

Per contra, the learned Additional Government Advocate would support the impugned order and submits that there is no merit in the petition and the same is liable to be dismissed. NC: 2024:KHC:32916

5.

A perusal of the impugned Show Cause Notice at Annexure - P dated 17.01.2023 and the impugned order at Annexure - R dated 31.03.2023 will indicate that the sole ground on which the GST registration of the petitioner has been cancelled by the respondent No.3 is by coming to the conclusion that the petitioner/tax payer was not functioning and existing at the principal place of business. However, the cumulative effect of the various documents produced by the petitioner in the present petition is sufficient to come to the conclusion that the petitioner/tax payer is actually functioning and existing at the principal place of business at Bengaluru and consequently, the sole reason assigned by the respondent No.3 in canceling the GST registration is contrary to the material on record warranting interference by this Court in the present petition.

6.

In the result, the following: ORDER A. The petition is allowed. B. The impugned order at Annexure - R dated 31.03.2023 is hereby quashed. NC: 2024:KHC:32916 C. The respondent No.3 - the Assistant Commissioner of Commercial Taxes, Bengaluru is directed to restore/reinstate the GST registration of the petitioner immediately upon the petitioner paying up to date taxes and filing the returns in accordance with law. D. The respondent No.3 is directed to permit the petitioner to submit/file its returns to enable compliance of this order. (S.R.KRISHNA KUMAR) JUDGE

RB

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.