K.B. Processing And Trading vs. Commercial Tax Officer - Karnataka High Court, 26 July 2023

Cause title — parties, addresses and appearances

- 1 - NC: 2023:KHC:25998 WP No. 14308 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 14308 OF 2023 (T-RES) BETWEEN: K B PROCESSING AND TRADING, NATURE OF THE BUSINESS: PROPRIETORSHIP, LOCATED AT GROUND FLOOR, MA NO.5354/A1/5289 AND RR NO.B:12385, NAGEENA BANU BUILDING, ANCHE STREET, MASJID E CUBA, BIRUR TOWN, MARGADA CAMP, BIRUR, CHIKKAMAGALURU, KARNATAKA - 577 116. THROUGH ITS PROPRIETOR, MR. KIRAN P. TITUS, SON OF TITUS P. CHACKO, AGED ABOUT 25 YEARS, RESIDENT OF PUTHUPPADIYIL, VELLAPPARA, THALAKODE, NERIAMANGALAM, ERANAKULAM, KERALA - 686 693. …PETITIONER (BY SRI. MOHAMMED SHAKEEB M MULLA., ADVOCATE) AND: COMMERCIAL TAX OFFICER, DIVISION-DGSTO, MALNAD, LOCAL GST OFFICER-SGSTO 222-TARIKERI, Digitally signed by VIJAYA P Location: High Court of Karnataka - 2 - NC: 2023:KHC:25998 WP No. 14308 of 2023 KARNATAKA GOODS SERVICES TAX, CHIKKAMAGALURU - 577 228. …RESPONDENT (BY SRI. K. HEMAKUMAR., AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER FOR CANCELLATION OF REGISTRATION FORM GST REG-19 ISSUED VIDE REFERENCE NO ZA290623053474D DATED 12/06/2023 (ANNEXURE A) 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 Order for Cancellation of Registration Form GST REG-19 issued vide reference No.ZA290623053474D dated 12.06.2023 at Annexure-A.

It is pointed out that the show-cause notice at Annexure-D mentions that the ground for cancellation would be under Section 29(2)(e) of the Karnataka Goods and Services Tax Act (for short 'the KGST Act') on the ground that registration was obtained by means of fraud, NC: 2023:KHC:25998 wilful misstatement or suppression of facts. It is pointed out however, that the order for cancellation is on the ground that "Rule 21(a) - person does not conduct any business from declared place of business".

Accordingly, it is submitted that the show-cause notice and the order passed are on different grounds. It is also contented that the show-cause notice is at Annexure-D. It is further submitted that without furnishing further information, the petitioner would not be in a position to meaningfully reply to the notice at Annexure-D as the grounds mentioned when individually taken, require specific response.

Learned AGA submits upon instructions that there are discrepancies insofar as the petitioner's business conduct is concerned. However, it is submitted that the show-cause notice at Annexure-D may be revised to enable the petitioner to make out a meaningful reply. NC: 2023:KHC:25998

Heard the learned counsel for the petitioner and the learned counsel for the respondent.

It would not be appropriate to enter into the merits of the contentions raised by the Revenue regarding the stand of the petitioner at this stage. Suffice it to state that the order at Annexure-A dated 12.06.2023 is to be set aside on the ground that order is passed on grounds not made out in the show-cause notice at Annexure-D. However, the show-cause notice at Annexure-D would stand subject to the condition being imposed by this Court, that the respondent-Revenue to furnish the material in support of Annexure-D to the petitioner, upon the petitioner marking his appearance before the respondent-Commercial Tax Officer on 05.08.2023. 7. Though the learned counsel for the petitioner submits that by virtue of the Order at Annexure-A being set aside, order of suspension requires to be revoked. However, in light of the contentions raised by the NC: 2023:KHC:25998 Revenue, it would be appropriate to direct the Revenue to dispose off the proceedings within one week from receipt of reply to the Show cause notice. Imposition of such timeline is to take care of the interest of the petitioner as well.

Accordingly, the petition is disposed off. All contentions are kept open. JUDGE MCR