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M/S Padmavathi Electrometals (P) Limited vs. The Assistant Commissioner Of Commercial Taxes

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WP/22257/2023HC KarnatakaGSTCNR KAHC01051654202306 June 2024Bench: S SUNIL DUTT YADAV4 pages
For Petitioner: SMT. VEENA J. KAMATH, ADVOCATEFor Respondent: SRI. HEMA KUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:19677 WP No. 22257 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO.22257 OF 2023 (T-RES) BETWEEN: 1. M/S PADMAVATHI ELECTROMETALS (P) LIMITED A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 NO.12, G K LANE R T STREET CROSS BENGALURU - 560 053 REPRESENTED BY ITS DIRECTOR MR GAUTHAM JAIN (COMPANY REGISTERED UNDER COMPANIES ACT) … PETITIONER (BY SMT. VEENA J. KAMATH, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO - 010 MINTO ANJANEYA BUILDING 5TH FLOOR, CHAMRAJPET BENGALURU - 560 018 … RESPONDENT (BY SRI. HEMA KUMAR, AGA) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE DTD 21.04.2023 IN FORM GST ASMT-10 IN REFERENCE NO.LGSTO-010/ASMT 10/BOGUS/23-24 AT ANNEXURE-G, IMPUGNED NOTICES BOTH DTD 06.05.2023 ISSUED IN FORM GST ASMT-10 IN REFERENCE NO.LGSTO- 010/ASMT 10/BOGUS/23-24 AT ANNEXURES-H AND H1 AND Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:19677 WP No. 22257 of 2023 IMPUGNED PROCEEDINGS DTD 19.05.2023 BEARING NO.ACCT/LGSTO-010/2023-24 OF THE RESPONDENT AT ANNEXURE-K AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The petitioner has sought for setting aside of the notice at Annexure-'G' dated 21.04.2023 as well as the notices at Annexures-'H' and 'H1', both issued in Form GST ASMT-10 in reference No.LGSTO-010/ASMT 10/BOGUS/23-24 dated 06.05.2023. The petitioner has also sought for setting side of the order at Annexure-'K' dated 19.05.2023. 2. The case of the petitioner is that the respondent has resorted to blocking of Input Tax Credit (ITC) in exercise of power under Rule 86A of CGST/IGST Rules, 2017 ['the Rules' for short].

3.

The said order has come into effect from 19.05.2023. Pursuant to such proceedings, the Credit Ledger has been blocked in terms of Annexures-'L', 'L1' NC: 2024:KHC:19677 and 'L2' dated 20.05.2023, 03.06.2023 and 05.06.2023 respectively.

4.

It is to be noticed that under Rule 86A(3) of the said Rules, the blocking of ITC is only for a period of one year.

5.

Sri K. Hema Kumar, learned Additional Government Advocate appearing for the respondents submits that the proceedings have been initiated for cancellation of registration, which however has been deferred in light of the petitioner making reference to the present proceedings.

6.

Learned counsel for the petitioner submits that due to medical reasons, the petitioner is not in a position to file Affidavit in writing to that effect and however on instructions, the learned counsel submits that the petitioner intends to file the returns.

7.

Said submission is taken note of. NC: 2024:KHC:19677

8.

In view of admitted facts as notice hereinabove and the period of one year having lapsed, the blocking of ITC at Annexure-'K' dated 19.05.2023 has been set aside and consequently, the blocking of Credit Ledgers at Annexures-'L', 'L1' and 'L2' dated 20.05.2023, 03.06.2023 and 05.06.2023 are set aside. The petition is accordingly disposed off. JUDGE VGR

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.