Marquee Agriventures Private Limited vs. The Assisstant Commissioner Of Commercial Taxes (Audit)-1.1 - Karnataka High Court, 23 September 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC:34594 WP No. 19769 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF SEPTEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 19769 OF 2023 (T-RES) BETWEEN: MARQUEE AGRIVENTURES PRIVATE LIMITED (PREVIOUSLY KNOWN AS RELOBRIDGE RELOCATIONS PRIVATE LIMITED), A PRIVATE LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT, 2013, NO.17/21, CASA CAPITOL, 4TH FLOOR, WOOD STREET, ASHOK NAGAR, BENGALURU-560 025, REP. BY ITS MANAGING DIRECTOR, SRI. SUSHANT GUPTA, SON OF SRI. MAHENDER KUMAR GUPTA AGED ABOUT 42 YEARS. …PETITIONER (BY SRI. SHREEHARI KUTSA, ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-1.1 DGSTO-1, 5TH FLOOR, BMTC BUILDING, YESHWANTAPURA, BENGALURU-560 022 THE PROPER OFFICER UNDER THE CGST/KGST ACT, 2017 …RESPONDENT (BY SMT.JYOTI M MARADI, HCGP) Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:34594 WP No. 19769 of 2023 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE

ORDER OF ADJUDICATION ISSUED UNDER SECTION 73(9) OF THE CGST / KGST ACT, 2017 BEARING NO. ACCT/(A)-1.1/ GST/ DRC-7/ 17/T.NO.150/ 2023-24 DATED 20/07/2023 ISSUED BY THE RESPONDENT AND ENCLOSED AS ANNEXURE-K AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The petitioner is aggrieved by the order of adjudication dated 20.07.2023 under Section 73(9) of KGST/CGST Act, 2017. Sri. Shreehari Kutsa, the learned counsel for the petitioner, and Smt. Jyoti M.Maradi, the learned High Court Government Pleader for the respondent, are heard for final disposal of the petition in the light of the petitioner's primary grievance that the reply furnished on 24.06.2023, upon receipt of notice dated 22.06.2023, NC: 2023:KHC:34594 is not considered and adjudication order is passed leading to a possible demand.

The petitioner's case that upon receipt of notice dated 22.05.2023 submissions have been made by E- mail on 24.06.2023 is not disputed, and the impugned order reads as under:

"Non-GST Turnover Declared

In this office show cause notice, it was proposed to levey CGST and SGST on Non- GST turnover declared in GSTR-3B to a tune of Rs.16,34,12,516-00 at the rate of NINE percent each. But The Company did not file any reply and also failed to produce supporting documents hence issued three endorsement on 22-06-2023, 20-06-2023 and 11-07-2023. But The Company failed to appear and produce documents even after providing sufficient opportunity. Hence, CGST and SGST along with interest under section 50(1) of The GST Act, 2017 is levied as under: NC: 2023:KHC:34594 It is possible that the adjudication may not be justified if the documents/invoices filed on 24.06.2023 are considered and therefore, this Court must opine that the impugned order is in violation of the principles of natural justice, and it must yield. At this stage, Sri. Shreehari Kutsa submits that notice dated 22.05.2023 is issued essentially on two grounds and the petitioner’s grievance is with the failure to consider the claim identified at paragraph 3 and the petitioner will concede insofar as the claim based on paragraph

In the light of the afore, the following:

ORDER

i) The petition is allowed-in-part and the impugned order of adjudication dated 20.07.2023 is quashed restoring the proceedings pursuant to the notice in Form GST DRC 01 dated 22.05.2023. NC: 2023:KHC:34594 ii) The petitioner shall be at liberty to re- submit the documents filed on 24.06.2023 with the respondent within three weeks and the proceedings shall be completed in the light of such reply. JUDGE

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