M/S V Arun Kumar vs. The Additional Chief Secretary

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WP/6737/2024HC KarnatakaGSTCNR KAHC01013277202402 April 2024Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. RAJEEV CHANNAPPA NULVI, ADVOCATEFor Respondent: SMT. JYOTI M. MARADI, HCGP

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:13375 WP No. 6737 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 02ND DAY OF APRIL, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR WRIT PETITION NO.6737 OF 2024 (T-RES) BETWEEN: M/S. V. ARUN KUMAR A PROPRIETARY CONCERN, NO. 25C GROUND FLOOR, KAVYASHREE NIALAY, NEAR BASAVA MANTAPA ,T K ROAD MADHAVA NAGARA, BHADRAVATHI, KARNATAKA-577301 (GSTIN NO. 29AKHPK918A1Z4) REPRESENTED BY PROPRIETOR MR. VADIVELU ARUN KUMAR S/O LATE D .VADIVELU AGED ABOUT 47 YEARS, PAN AKHPK 7918 A. …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI, ADVOCATE) AND: 1. THE ADDITIONAL CHIEF SECRETARY MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) GOVERNMENT OF KARNATAKA VIDHANA SOUDHA, BENGALURU - 560 001. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) CHIKKAMAGALURU, OPP. RTO OFFICE, K.M. ROAD JYOTHI NAGAR, CHIKKAMAGALURU KARNATAKA-577 102. …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP) Digitally signed by VANDANA S Location: High Court of Karnataka - 2 - NC: 2024:KHC:13375 WP No. 6737 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ADJUDICATION UNDER SECTION 73(9) R.W.S. 73(11) AND 122(2)(A) OF THE KGST ACT, 2017 R.W.R. 142 OF THE KGST RULES, 2017 ON 10/11/2023 BEARING NO. DCCT(A)/CKM/2023-24/T NO. 1448 PASSED BY THE RESPONDENT NO.2 AUTHORITY (ANNEXURE-H) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

In this petition, the petitioner seeks the following reliefs: “A. Issue a Writ of issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the Order of Adjudication u/s 73(9) r.w.s 73(11) & 122(2)(a) of the KGST Act, 2017 r.w.r 142 of the KGST Rules, 2017 on 10/11/2023 Bearing No.DCCT (A)/CKM/2023-24/T.NO.1448 passed by the Respondent No. 2 Authority (ANNEXURE-‘H’) ; B. Issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the Form GST-DRC-07 of the Respondent Authority issued on 10/11/2023 and thereby not to implement the demand along-with interest and penalty (ANNEXURE-‘H’); C. To pass any such other Writ, Order or Direction as this Hon’ble court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity;”

2.

In addition to reiterating the various contentions urged in this petition and referring to the material on record, NC: 2024:KHC:13375 learned counsel for the petitioner submits that except uploading the show cause notice in the GST portal, the respondents did not intimate the petitioner about the impugned proceedings, which culminated in the impugned order without providing an opportunity of personal hearing to the petitioner thereby violating the principles of natural justice. It is submitted that if one more opportunity is provided, by setting aside the impugned order and remitting the matter back to the respondents from the stage of submitting the reply to the show cause notice, the petitioner would submit his reply along with documents and a direction may be issued to the respondents to reconsider the matter afresh in accordance with law.

3.

Per contra, learned HCGP for the respondents submits that there is no merit in the present petition and the same is liable to be dismissed.

4.

Though several contentions having urged by both sides in support of their respective claims, having regard to the specific assertion on the part of the petitioner that if one more opportunity is provided, the petitioner would submit his reply along with the documents to the show cause notice, I deem it just NC: 2024:KHC:13375 and appropriate to adopt a justice oriented approach and set-aside the impugned order and remit the matter back to the respondent No.2 for reconsideration afresh from the stage of the petitioner submitting the reply to the show cause notice issued under Section 73(1) of the KGST/CGST Act, 2017 and to proceed further in accordance with law.

5.

In the result, I pass the following: ORDER (i) Petition is hereby allowed; (ii) Impugned order dated 10.11.2023 passed by the respondents at Annexure-H is hereby set aside; (iii) The matter is remitted back to the respondent No.2 for reconsideration afresh from the stage of petitioner submitting reply to the show cause notice dated 09.10.2023 at Annexure-G; (iv) Liberty is reserved in favour of the petitioner to submit his reply along with documents to the show cause notice and respondents shall consider the same and proceed further in accordance with law after providing NC: 2024:KHC:13375 sufficient and reasonable opportunity to the petitioner including an opportunity of personal hearing; (v) Petitioner undertakes to appear before respondent No.2 on 22.04.2024 to enable compliance of this order. JUDGE

AV List No.: 1 Sl No.: 50

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.