M/S Shabari Enterprises vs. The State Of Karnataka
Facts
The petitioner, M/s Shabari Enterprises, filed a writ petition before the High Court of Karnataka challenging a notice dated 06.06.2024 issued under Section 79(1) of the Karnataka Goods and Services Tax (KGST) Act, 2017, in Form GST DRC-13, by the Deputy Commissioner of Commercial Taxes (Audit). The notice was issued by Respondent No. 2. The petitioner sought to quash this notice. Subsequently, the petitioner's advocate filed a memo stating that the government had changed its policy regarding the waiver of penalty and interest on GST. Due to this policy change, the petitioner wished to withdraw the petition in the interest of justice and equity.
Held
The Court considered the memo filed by the petitioner's advocate, which stated that the government had changed its policy to waive penalty and interest on GST. Based on this submission, the petitioner expressed a desire to withdraw the writ petition. The Court, in light of the memo and the petitioner's wish to withdraw, dismissed the petition. The Court explicitly stated that all contentions are kept open, meaning that the dismissal of the writ petition does not preclude the petitioner from raising any issues or contentions in the future should the need arise. The operative direction was the dismissal of the petition.
Key Issues
1. Whether the petitioner is entitled to withdraw the writ petition in light of the government's policy change regarding the waiver of penalty and interest on GST? (Question of law) The petitioner argued that a new government policy has been introduced, offering a waiver of penalty and interest on GST. Consequently, the petitioner wishes to withdraw the present writ petition, which challenges a notice related to GST dues, as it is no longer necessary or in the interest of justice to pursue the matter. The petitioner relied on the principle of equity and the changed circumstances due to the government's policy shift. The respondents did not record any specific arguments against the withdrawal in the judgment.
Sections Cited
Section 79(1)
AI-generated summary — verify with the full judgment below
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NC: 2024:KHC:28147 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 16301 OF 2024 (T-RES)
BETWEEN:
M/S SHABARI ENTERPRISES, PARTNERSHIP FIRM REGISTERED UNDER THE INDIAN PARTNERSHIP ACT 1932 NO.30, MAIN ROAD, KODI CIRCLE WHITEFIELD, BENGALURU 560066 REP BY ITS MANAGER (FINANCE AND ADMINSITRATION) SMT SHANTHI SOMU AGED ABOUT 42 YEARS …PETITIONER (BY SRI. VINOD KUMAR M., ADVOCATE) AND:
THE STATE OF KARNATAKA FINANCE DEPARTMENT AMBEDKAR VEEDHI BENGALURU 560001 REP BY THE SECRETARY
THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 5.7 DGSTO-05 VKT-2 COURT OF KARNATAKA NC: 2024:KHC:28147 B BLOCK, ROOM NO.605, 6TH FLOOR VIVEKANAGAR POST KORAMANGALA BENGALURU 560047. …RESPONDENTS (BY SRI. K. HEMAKUMAR, AGA)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DTD 06.06.2024 ISSUED UNDER SEC 79(1) OF KGST
The judgment continues below.
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