BharatTaxGST

M/S Shree Mahaveer Distributors vs. Union Of INDIA

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WP/6245/2020HC KarnatakaGSTCNR KAHC01014276202010 June 2022Bench: M.I.ARUN5 pages
For Petitioner: SRI. BHANU MURTHY, J.S., ADVOCATEFor Respondent: SRI. JEEVAN J. NEERALAGI, C.G.S.C. FOR R1, R3 TO R6; SRI K. HEMA KUMAR, A.G.A. FOR R2

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Cause title — parties, addresses and appearances
1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JUNE, 2022 BEFORE THE HON’BLE MR. JUSTICE M.I. ARUN WRIT PETITION NO.6245 OF 2020 (T-RES) BETWEEN : M/S. SHREE MAHAVEER DISTRIBUTORS NO. 246, NEW NO. M123, K.R. HOSPITAL ROAD, NEAR CAUVERY EMPORIUM CROSS, MYSURU 570 001. (REPRESENTED BY THE PROPRIETRIX SMT. SUNITHA, AGED ABOUT 46 YEARS, W/O. MAHAVEER KUMAR). ...PETITIONER (BY SRI. BHANU MURTHY, J.S., ADVOCATE) AND : 1 . UNION OF INDIA MINISTRY OF FINANCE, REPRESENTED BY SECRETARY, NORTH BLOCK, NEW DELHI 110001. 2 . STATE OF KARNATAKA REPRESENTED BY SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE 560001. 3 . CENTRAL BOARD OF INDIRECT 2 TAXES AND CUSTOMS, NORTH BLOCK, NEW DELHI - 110 001. 4. THE PRINCIPAL COMMISSIONER OF CENTRAL TAX THIRD FLOOR, GST BHAVAN, S1 AND S2, SIDDHARTHA NAGAR, VINAYA MARGA, MYSURU 570011. 5. THE COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE, AUDIT CIRCLE - BELAGAVI, 71 CLUB ROAD, BELGAUM - 590 001. 6. SUPERINTENDENT OF CENTRAL TAX GR-41, BELAGAVI AUDIT CIRCLE, 71 CLUB ROAD, BELGAUM - 590 001. ...RESPONDENTS (BY SRI. JEEVAN J. NEERALAGI, C.G.S.C. FOR R1, R3 TO R6; SRI K. HEMA KUMAR, A.G.A. FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE THE PROVISIONS OF SEC. 50 OF CGST/KGST ACT, 2017 ENCLOSED AS ANNX-A AS BEING UNENFORCEABLE AS THE MACHINERY PROVISIONS ARE NOT PRESCRIBED AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING : 3

ORDER

The petitioner is a registered dealer under the provisions of the GST in the State of Karnataka.

2.

The Superintendent of Central Tax has issued demand of interest on delayed payment of tax to the petitioner which is dated 20.02.2020 bearing C.No.IV/01/33/2019-20(A) vide Annexure-G to the writ petition. The same is issued based on the provisions of Section 50 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'CGST Act' for short) / the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as 'KGST Act' for short). Aggrieved by the same, the instant writ petition is filed.

3.

Subsequently, there is an amendment introduced to Section 50 of CGST/KGST Act and the said amendment is given a retrospective effect with effect from 01.07.2017. The petitioner submits that he has no

4 objection if the interest on delayed payment of tax is computed based on the amended provision.

4.

The Advocate for the Superintendent of Central Tax fairly submits that in view of the amendment to Section 50 of CGST/KGST Act, the case of the petitioner shall be considered in accordance with the amended provision and the matter deserves to be remanded back. Hence, the following : ORDER

The demand of interest on delayed payment of tax issued by the Superintendent of Central Tax dated 20.02.2020 bearing C.No.IV/01/33/2019-20(A) vide Annexure-G to the writ petition is hereby set aside.

The matter stands remanded back to the Superintendent of Central Tax for fresh adjudication in accordance with the amended provisions of Section 50 of CGST/KGST Act.

5

The Superintendent of Central Tax is directed to afford an opportunity of hearing to the petitioner and take a decision in accordance with law.

Writ Petition is disposed of accordingly. JUDGE

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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.