M/S Mayura Enterprises vs. The Assistant Commissioner

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WP/19575/2024HC KarnatakaGSTCNR KAHC01041567202408 August 2024Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. K M SHIVAYOGI SWAMY., ADVOCATEFor Respondent: SRI.K HEMA KUMAR., AGA

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:31646 WP No. 19575 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19575 OF 2024 (T-RES) BETWEEN: M/S MAYURA ENTERPRISES, A PROPRIETORSHIP CONCERN SITE NO. 74, SURVEY NO.48 AND 49, OUTER RING ROAD, PREMANAGARA, LAGGERE, BANGALORE-560 058. REPRESENTED BY ITS PROPRIETOR ARIFULLA KHAN, AGED ABOUT 59 YEARS. …PETITIONER (BY SRI. K M SHIVAYOGI SWAMY.,ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-076, 2ND FLOOR, KIADB BUILDING, PEENYA INDUSTRIAL AREA, 14TH CROSS, 2ND STAGE, BENGALURU-560 058. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 6.6, DGSTO-6, KIADB BUILDING, 3RD FLOOR,L 14TH CROSS, 4TH PHASE, PEENYA 2ND STAGE, BANGALORE-560 058. …RESPONDENTS (BY SRI.K HEMA KUMAR.,AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED EX-PARTE ORDER UNDER RULE 86A OF CGST/KGST RULES 2017 BEARING NO. ACCT/LGSTO-076/ITC BLOCK/2024-25 DTD. 12.06.2024 PASSED BY THE R-1 IN THE PETITIONER CASE VIDE ANNX-F AND ETC., Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:31646 WP No. 19575 of 2024 THIS WRIT 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: “a) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the impugned ex-parte order Under Rule 86A of CGST/KGST Rules 2017 bearing No.ACCT/LGSTO-076/itc block/2024-25 dated 12.06.2024 passed by the 1st respondent in the petitioners’ case vide Annexure-‘F’. b) Issue Writ of Certiorari or directions in the nature of Certiorari to quash the impugned Notice issued by the 2nd respondent in Form GST DRC-01A under Section 74 of the CGST Act, in the petitioner’s case bearing File No.DCCT(A)-6.6/DGSTO-6/INTIMATION/2024-25 dated 04.07.2024 vide Annexure-‘H’. c) Issue Writ of Mandamus or directions in the nature of Mandamus directing the respondent authorities to REVERSE back the Input tax credit to the petitioner’s input tax ledger; d) Issue such other writ or orders as deemed fit in the circumstances of the case in the interest of justice and equity.”

2.

Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. NC: 2024:KHC:31646

3.

A perusal of the material on record will indicate that in the first instance, the respondents have issued intimation dated 05.06.2024 under Rule 86-A of the Central Goods and Services Tax Rules, 2017, pursuant to which an order under Rule 86-A CGST Rules r/w. Section 20 of the IGST Act dated 12.06.2024 was passed by the respondent calling upon the petitioner to pay a sum of Rs.9,11,503/- (CGST) and Rs.9,11,503/- (SGST). Subsequently, the respondents issued one more pre-intimation notice at Annexure-H dated 04.07.2024 under Section 74 of the KGST Act, to which the petitioner submitted reply dated 15.07.2024 and thereafter approached this Court by way of the present petition.

4.

During the pendency of the present petition, since there is no interim order, the respondents proceeded to issue show-cause notice dated 01.08.2024 and the petitioner is aggrieved by the said show-cause notice also.

5.

As stated supra, since the respondents have issued show-cause notice dated 01.08.2024, during the pendency of the present petition, it would be necessary to provide an opportunity to the petitioner to submit his reply to the aforesaid show-cause notice and issue directions to the concerned respondents to proceed NC: 2024:KHC:31646 further in the matter after providing sufficient and reasonable opportunity to the petitioner to submit his reply to the aforesaid show-cause notice and issue directions to the concerned respondents to proceed further in the matter after providing sufficient and reasonable opportunity to the petitioner.

6.

Under these circumstances, I deem it just and appropriate to dispose of this petition reserving liberty in favour of the petitioner to submit its reply/response to the show-cause notice at Annexure-L dated 01.08.2024 and by directing the respondents to proceed further in the matter and pass appropriate order and take appropriate decision in accordance with law. The petitioner shall submit his reply/response along with all relevant documents on or before 01.09.2024 as stipulated in the aforesaid show-cause notice. Immediately upon the petitioner submitting his reply as stated supra, the concerned respondents shall consider the same and proceed further, in accordance with law. It is further directed that till the respondent take appropriate decision, pursuant to the reply and documents submitted by the petitioner, the respondents shall not take any precipitative steps against the petitioner. NC: 2024:KHC:31646

7.

Subject to the aforesaid observations and directions, the petition stands disposed of. (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 1 Sl No.: 17

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.