M/S Manukraft Technology PVT. LTD. vs. Assistant Commissioner Of Commercial Taxes - Karnataka High Court, 27 March 2024

Cause title — parties, addresses and appearances

- 1 - NC: 2024:KHC:12615 WP No. 15653 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF MARCH, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No. 15653 OF 2023 (T-RES) BETWEEN: M/S. MANUKRAFT TECHNOLOGY PVT. LTD., INCORPORATED UNDER THE COMPANIES ACT REPRESENTED BY ITS DIRECTOR MR. MALLIKARJUN G R AGED ABOUT 47 YEARS No.5, 6/1, KARIHOBANAHALLI MAGADI MAIN ROAD BENGALURU – 560 073. PRESENT ADDRES: No.60/1, 1ST MAIN ROAD, 2ND STAGE INDUSTRIAL SUBURB YESHWANTHPUR BENGALURU – 560 022. …PETITIONER (BY SRI SHANKARE GOWDA M N, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-6.1), DGSTO-6 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE PEENYA INDUSTRIAL AREA BENGALURU – 560 058. 2. CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS GST POLICY WING GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CR BUILDING, ITO LANE IP ESTATE, NEW DELHI DELHI -110 002. …RESPONDENTS (BY SRI HEMA KUMAR, AGA FOR R1 Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:12615 WP No. 15653 of 2023 SRI JEEVAN J NEERALGI, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED SHOW CAUSE NOTICE BEARING REF NO.ZD2906230242320 ALONG WITH SUMMARY OF SHOW CAUSE NOTICE IN FORM GST DRC-01 IN REF No.ZD2906230242320 AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

In this petition the petitioner seeks for quashing of the impugned show cause notice at Annexure – E dated 23.06.2023 and for other reliefs.

Heard the learned counsel for the petitioner and the learned AGA for respondents and perused the material on record.

Learned counsel for the petitioner submits that vide Annexure A, the petitioner sought for refund of input tax credit availed by him at the time of filing of the original returns and after coming into force of the GST regime, the petitioner filed one more application seeking transitional credit.

It is the grievance of the petitioner that without considering the claim of the petitioner either for refund or NC: 2024:KHC:12615 transitional credit, the respondent has issued the impugned show cause notice which deserves to be quashed.

Per contra, learned AGA for the respondent submits that present petition may be disposed of reserving liberty in favour of the petitioner to submit a reply to the show cause notice which shall be considered by the respondent in accordance with law.

In view of the aforesaid facts and submissions, I deem it just and appropriate to dispose of the petition reserving liberty in favour of the petitioner to submit his reply to the show cause notice dated 23.06.2023 issued by the respondent. Upon the petitioner submitting his reply along with documents, the respondent shall verify as to whether actual refund has been taken under the KVAT Act by the petitioner and thereafter pass appropriate orders in relation to the transitional credit sought for by the petitioner in accordance with law after providing sufficient and reasonable opportunity to the petitioner.

The petitioner is directed to submit fresh representation within a period of one month from today pursuant to which the respondent shall proceed further and pass appropriate NC: 2024:KHC:12615 orders in accordance with law within a period of three months thereafter.

Subject to the aforesaid direction, petition stands disposed off. JUDGE

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