M/S Fasttract Packers PVT LTD. vs. State Of Karnataka

The captioned Writ Petition is filed seeking the following reliefs: (i) Issue a writ of certiorari setting aside the clarification issued by the Government of Karnataka in paragraph 2(a)(i) of the Karnataka Tax on Entry of Goods (Removal of Difficulties) Order, 2020 vide Notification issued in No.FD 27 CSL 2020 dated 17-4-2020 that for the purpose of calculating the five years after the end of the prescribed tax period in sub-section (1) of section 7 of the Karnataka Tax on Entry of Goods Act, 1969 shall be considered to be five years and six months after the end of the tax period upto March 2016 is beyond the competence of the State Government in the “Power to remove difficulties” delegated by the State Legislature in section 32 of the repealed Karnataka Tax on Entry of Goods Act, 1979 read with sub-section (3) of section 174 of the NC: 2024:KHC-D:11371 Karnataka Goods and Services Tax, 2017 – published in Karnataka GST Law Journal 2020 (96) KGST. L. J. at page 549 relating to Journals / Statutes – Annexure ‘A’. (ii) Issue a writ of certiorari setting aside the reassessment order in CAS Order No.308349387 passed by Deputy Commissioner of Commercial Taxes (Audit-3), the third respondent herein, under section 6 (1) of KTEG Act, 1979 for the assessment year 2014-15 on 28-9-2020 as barred by the limitation prescribed in section 7 (1) of the repealed KTEG Act, 1979 and therefore a nullity in law – Annexure ‘B’.

Learned counsel Sri.M.Thirumalesh., submits that the petitioner is not pressing prayer (i) and the question of limitation. The oral submission about the non-pressing of prayer (i) and non-pressing of the issue of limitation is placed on record.

Regarding prayer (ii) concerned, a submission is made that the reassessment order was passed during the Covid-19 pandemic i.e., on 28.09.2020 and due to restrictions for inter-state traveling, the petitioner was unable to travel. Learned counsel vehemently contended that the Deputy Commissioner of Commercial Taxes (Audit-3), Belagavi, NC: 2024:KHC-D:11371 hurriedly passed the reassessment order despite a request for an adjournment. Counsel hence submitted that the matter requires a remand. Learned AGA justified the order of the Deputy Commissioner of Commercial Taxes and vehemently opposed remand. He submits that the Writ Petition is devoid of merits and the same may be dismissed. Heard, the contentions urged on behalf of the respective parties and perused the Writ papers with utmost care.

The reassessment order is furnished along with the Writ Petition and the same is marked as Annexure-B. It is dated 28.09.2020. The entire world witnessed the COVID-19 pandemic and the date of the order noticeably makes it clear that it has been passed amidst the Covid-19 pandemic. Despite the request, the Deputy Commissioner passed the order hurriedly. In my view, the matter requires a remand. Therefore, the order passed by the Deputy Commissioner is liable to be set aside. Accordingly, it is set aside.

The Writ of Certiorari is ordered. The order dated: 28.09.2020 passed by the Deputy Commissioner of Commercial NC: 2024:KHC-D:11371 Taxes (Audit-3), Belagavi in CAS Order No.308349387 vide Annexure-B is quashed. The matter is remanded to the Deputy Commissioner of Commercial Taxes (Audit-3), Belagavi.

Resultantly, the Writ Petition is allowed and remanded. The Deputy Commissioner is hereby directed to pass a fresh reassessment order after taking into consideration the contentions to be urged on behalf of the petitioner. Since the petitioner is not pressing the question of limitation, hence the same cannot be urged before the Deputy Commissioner of Commercial Taxes. Needless to observe this Court has not expressed any opinion on the merits of the case. (JYOTI MULIMANI) JUDGE