Mr. Karpent Irfan vs. State Of Karnataka - Karnataka High Court, 30 July 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC-D:10733 WP No. 102781 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF JULY, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 102781 OF 2024 (T-RES) BETWEEN: MR. KARPENT IRFAN, PROPRIETOR OF M/S. KGN TRADERS, S/O. C.K.SHARMAS SAB, AGED ABOUT 32 YEARS, D O: 654/1, INDIRA NAGARA, W NO.05, KAMPLI, BELLARY DISTRICT-582 132. …PETITIONER (BY SRI.RAGHAVENDRA B.HANJER., ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU-560 001. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LVO 500, VANIJYA THERIGE BHAVANA, ’A’ BLOCK, DEVARAJ ARAS LAYOUT, DAVANAGERE-577 006. 3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, LVO-500, HUDA COMPLEX, ISR ROAD, HOSPET-583 201, DISTRICT: VIJAYANAGAR. …RESPONDENTS (BY SRI.SHIVAPRABHU S.HIREMATH., AGA FOR R1 TO R3) Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:10733 WP No. 102781 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER:

ORAL ORDER Sri.Raghavendra B.Hanjer., learned counsel for the petitioner has appeared through video conferencing. Sri.Shivaprabhu S.Hiremath., learned AGA for respondents 1 to 3 has appeared in person.

The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the show cause notice dated:04.08.2019 vide Annexure-A and the order for cancellation of registration dated:15.08.2019 vide Annexure-B.

Learned counsel for the respective parties urged several contentions. Sri.Raghavendra B.Hanjer., learned counsel for the petitioner in presenting his arguments strenuously urged that the petitioner was issued with a show cause notice on 04.08.2019, and was directed to appear before the Assistant NC: 2024:KHC-D:10733 Commissioner on 05.08.2019. He argued by saying that the petitioner was not given reasonable time to reply to the show cause notice. He vehemently contended that the petitioner was also not given reasonable opportunity before the cancellation of registration. Counsel, therefore, submits that the show cause notice and the order for cancellation of registration are liable to be quashed. Heard the contentions urged on behalf of the respective parties and perused the Writ papers with utmost care.

The Show Cause notice is dated:04.08.2019 and the petitioner was directed to appear before the Assistant Commissioner on 05.08.2019. Under Rule 22 of Central Goods and Services Tax Rules, 2017, where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled. In the present case, admittedly the show cause notice was issued on 04.08.2019. NC: 2024:KHC-D:10733 The period as prescribed under Rule 22 has not been adhered to by the officer concerned. Furthermore, before the order for cancellation of registration, an opportunity of being heard was not accorded to the petitioner as per proviso to Section 29 of the Act. Hence, the show cause notice and the order for cancellation of registration are liable to be quashed. Accordingly, they are quashed.

The Writ of Certiorari is ordered. The show cause notice dated:04.08.2019 vide Annexure-A and the order for cancellation of registration dated:15.08.2019 vide Annexure-B is quashed on the condition that the petitioner shall file up-to- date Returns and discharge all the statutory dues (if any) within eight weeks from the date of receipt of the certified copy of this order.

Resultantly, the Writ Petition is allowed. (JYOTI MULIMANI) JUDGE TKN List No.: 2 Sl No.: 37