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M/S. Paradise Food Court Private Limited vs. The State Of Karnataka

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WP/15103/2024HC KarnatakaGSTCNR KAHC01032053202423 July 2024Bench: S SUNIL DUTT YADAV7 pages
For Petitioner: SRI. PRASAD PARANJAPE, ADVOCATE FOR SRI. G.L.MOHAN MAIYA, ADVOCATEFor Respondent: SRI. K. HEMA KUMAR, AGA FOR R1 TO R3; SRI. JEEVAN J. NEERALAGI, ADVOCATE FOR R4

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:28982 WP No. 15103 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 15103 OF 2024 (T-RES) BETWEEN: M/S. PARADISE FOOD COURT PRIVATE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT 484, SIGNATURE SQUARE, GROUND AND MEZZANINE FLOOR, CMH ROAD, BINNAMANGALA 1st STAGE, INDIRANAGAR, BENGALURU, KARNATAKA - 560 038. REPRESENTED BY ITS VP FINANCE AND ACCOUNTS, MR. JIMMY ASHOK OZA, AGED ABOUT 44 YEARS, S/O ASHOK OZA, R/A 604, DHEERAJ VIHAR, NATWAR NAGAR ROAD, NO.1, JOGESHWARI EAST, MUMBAI - 69. …PETITIONER (BY SRI. PRASAD PARANJAPE, ADVOCATE FOR SRI. G.L.MOHAN MAIYA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, THROUGH ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE 560 001. Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:28982 WP No. 15103 of 2024 2. COMMISSIONER OF COMMERCIAL TAXES, COMMERCIAL TAXES OFFICE -1 GROUND FLOOR, GANDHINAGAR, BANGALORE - 560 009. 3. DEPUTY COMMISSIONER OF COMMERCIAL TAXES, AUDIT -5.3, DGSTO -5, KORAMANGALA, BANGALORE - 560 047. 4. THE GOODS AND SERVICES TAX COUNCIL, THROUGH ITS SECRETARY, OFFICE OF THE GST COUNCIL SECRETARIAT, 5th FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI - 110 001. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA FOR R1 TO R3; SRI. JEEVAN J. NEERALAGI, ADVOCATE FOR R4) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE RECORDS PERTAINING TO THE PETITIONERS CASE AND AFTER GOING INTO THE VALIDITY AND LEGALITY THEREOF TO QUASH AND SET ASIDE THE IMPUGNED ORDER NO. DCCT(AUDIT)-5.3/DGSTO-5/GSTADT (18-19)/ORDER 79/2023-24 DATED 12.03.2024 (ANNEXURE A) FOR THE PERIOD APRIL 2018 TO MARCH 2019 ISSUED BY RESPONDENT NO. 3 HEREIN, AND ANY FORM DRC-07 ISSUED CONSEQUENT TO OR IN PURSUANCE OR IN FURTHERANCE OF THE IMPUGNED ORDER AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2024:KHC:28982 WP No. 15103 of 2024 CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV

ORAL ORDER (PER: HON'BLE MR JUSTICE S SUNIL DUTT YADAV)

The petitioner has sought for issuance of writ of certiorari to set aside the impugned order at Annexure-'A' passed by respondent No.

3.

The petitioner has also sought for appropriate direction to the respondents restraining from taking steps in furtherance of Annexure-'A'. The petitioner has sought for setting aside of the notifications at Annexures-'B' and 'C' as well.

2.

Learned counsel for the petitioner submits they are not pressing the prayer at (iii) in the present proceedings and said submission is taken note of.

3.

Learned counsel for the petitioner submits that in the order passed under Section 73 of the Central Goods and Service Tax Act, the Assessing Officer has taken note of income of the petitioner entity which is the subject NC: 2024:KHC:28982 matter of separate returns as regards GST transactions relating to GST outside the State of Karnataka.

4.

Learned counsel for the petitioner draws attention to Annexure-'K' which is a reply to the show cause notice and submits that in terms of the reply at paragraph No.5 in issue No.V, petitioner has specifically averred regarding the State-wise break-up of sales and if that were to be so, insofar as the petitioner is concerned

as regards the turnover in Karnataka, the petitioner is filing returns and insofar as turnover in other States separate returns are filed as is evidenced from the documents produced in the present petition.

5.

Reliance is also placed on the returns filed as regards other States which are produced along with the present petition.

6.

Learned Additional Government Advocate Sri. K. Hema Kumar submits that it is a matter which also could be raised in appeal proceedings as well. NC: 2024:KHC:28982

7.

After hearing the matter for sometime, the reply to the show cause notice at Annexure-'K' is taken note of. Reply at paragraph No.5 of issue No.V is as follows:

"

5.

Further, the Company wishes to submit that revenue earned in the respective states have been reported in the GST returns filed for the said states. In this regard, we have provided below the state wise break up of sales as per financials of the Company: S.No. State Amount 1 Andhra Pradesh 26,55,56,489 2 Haryana 7,45,56,605 3 Karnataka 48,68,66,091 4 Tamil Nadu 24,25,15,793 5 Telangana 250,93,34,454

Total 357,88,29,432

8.

In support of the said submission, the petitioner would point out that as regards the State of Andhra Pradesh, returns filed are at Annexure-'V', as regards the turnover relating to the State of Haryana, returns filed are at Annexure-'W', as regards the State of Tamil Nadu, petitioner has relied on the re-conciliation statement at NC: 2024:KHC:28982 Annexure-'X' and as regards the State of Telangana, petitioner has relied on Annexure-'Y'.

9.

Without recording a conclusive finding prima-facie the assertion of the petitioner requires consideration and acceptance for limited purpose of the present proceedings. If that were to be so, it would be appropriate to relegate the petitioner to the stage of show cause notice reserving liberty to the petitioner to make out his case for dropping of the proceedings as observed.

10.

In light of the peculiar facts of the case and the contention made out that the authority is proceeding as against the turnover of other States as regards which separate returns have been filed, the order at Annexure- 'A' is set aside. Matter is relegated to the stage of show cause notice. All contentions are kept open. Needless to state, the petitioner ought not to take any ground as regards limitation for completion of proceedings. NC: 2024:KHC:28982

11.

I.A.No.1/2024 is allowed. Petitioner is dispensed with production of original or certified copy of Annexures-A, B and C. Accordingly, petition is disposed off. (S. SUNIL DUTT YADAV) JUDGE MCR

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.