M/S Snvp Infraprojects Private Limited vs. Assistant Commissioner Of Central Tax GST Appeal -Ii - Karnataka High Court, 29 September 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC:35463 WP No. 18572 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF SEPTEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 18572 OF 2023 (T-RES) BETWEEN: M/S SNVP INFRAPROJECTS PRIVATE LIMITED (ERSTWHILE KNOWN AS M/S MHADEO ENGINEERING AND INFRASTRUCTURE PRIVATE LIMITED REPRESENTED BY ITS AUTHORIZED, MR. SURESH PATIL S/O GURAPPA FAKIRAPPA PATIL AGED ABOUT 60 YEARS ADMIN OFFICE AT 189/4, WARD NO. 24 NEAR VEERABHADRASHWAR TEMPLE BASAV NAGAR, GOKAK BELGAVI, GSTIN 29AAFCM29469P1ZR …PETITIONER (BY SRI. PRANAY SHARMA Y., ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF CENTRAL TAX GST APPEAL -II BMTC BUILDING, 4TH FLOOR, ABOVE BMTC BUS STAND DOMLUR, OLD AIRPORT ROAD, BENGALURU 560071 Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:35463 WP No. 18572 of 2023 2. SUPERINTENDENT OF CENTRAL TAX RANGE -CND-04, NORTH DIVISION -4 BENGALURU GST NORTH COMMISSIONERATE NO. 16/1, I FLOOR, S P COMPLEX, LALBAGH ROAD, BEGNALURU URBAN 560027 …RESPONDENTS (BY SRI. JEEVAN J NEERALGI, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER BEARING ORDER IN APPEAL BEARING NO. 161/2023-24/ADC-AII/GST PASSED ON 09/08/2023 AT ANNX-G AND DIRECT R2 TO REVOKE THE CANCELLATION OF GST REGISTRATION OF THE PETITIONER (ANNEXURE-A). THIS PETITION, COMING ON FOR PRELIMINARY HEARING B GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The petitioner is aggrieved by the Order-in- Appeal dated 09.08.2023 in No.161/2023-24/ADC- AII/GST [Annexure-G], and the first respondent by this impugned order has confirmed the cancellation of the petitioner’s GST registration vide order dated 25.02.2023 by the second respondent. The first NC: 2023:KHC:35463 respondent has primarily rejected the petitioner’s appeal as against the aforesaid order dated 25.02.2023 on the ground that the appeal is filed beyond permitted time period.

The petitioner contends that, with the entrustment of certain work by M/s. KIADB in the year 2013 and the belated commencement of the contracted work, the petitioner has engaged the services of M/s. Sham Earth Movers. The petitioner has dues applicable till the month of January 2023, but the petitioner contends that, because the Input Tax Credit [ITC] was not reflected in the GST portal, it did not file Return under the bonafide belief that he could await the portal reflecting the ITC.

The petitioner, insofar as the delay in filing the appeal, without elaboration has pleaded bonafides to say the petitioner has employed number of persons and the enterprise would be brought to a standstill with many loosing employment NC: 2023:KHC:35463 opportunities despite the fact that the petitioner is willing to file returns, pay all the dues availing ITC.

Sri. Pranay Sharma Y., the learned counsel for the petitioner and Sri. Jeevan J. Neeralgi, the learned standing counsel for the respondents, are heard for final disposal in the light of the aforesaid circumstances which remain mostly undisputed, and also in the light of the fact that where bonafides are demonstrated, this Court, in similar circumstances, has called upon the concerned to revoke the cancellation on terms such as that consequent to revocation of the GST cancellation, the concerned assessee must file Books of Returns and tender all admitted dues within a reasonable time. Sri. Pranay Sharma Y. submits that the second respondent will have to pass orders for revocation of the cancellation of GST and that the petitioner will not have any liability because he has a credit to a tune of more than Rs.4,00,000/-, and in any event, all permissible NC: 2023:KHC:35463 dues will be paid. In the light of the foregoing and in the interest of justice, the following: ORDER a) The petition is allowed.

b) The second respondent – the Superintendent of Central Tax - notwithstanding the impugned Order-in- Appeal dated 09.08.2023 [Annexure-G], is called upon to revoke the cancellation of GST vide order dated 25.02.2023 on the condition that the petitioner shall within two [2] weeks file all Returns and discharge any dues that may be outstanding.

c) It is needless to observe that if the petitioner does not file Books of Returns within time now allowed upon the revocation of the GST cancellation, the second respondent shall cancel the GST NC: 2023:KHC:35463 registration in accordance with law. JUDGE