Atria Convergence Technologies Limited vs. Union Of INDIA - Karnataka High Court, 31 May 2022

Cause title — parties, addresses and appearances

- 1 - IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF MAY 2022 BEFORE THE HON’BLE MR. JUSTICE M.I.ARUN WRIT PETITION No.7323 OF 2022 (T-RES) BETWEEN: ATRIA CONVERGENCE TECHNOLOGIES LIMITED ½ 3RD FLOOR, GOLDEN HEIGHTS, 59TH C CROSS 4TH M BLOCK, RAJAJINAGAR, BENGALURU-560 001 REP. THROUGH ITS AUTHORIZED SIGNATORY MR SRINIVAS CHINTADA VICE PRESIDENT (FINANCE) S/O VENKAT LAXMI NARAYAN CHINTADA, AGED 51 YEARS R/O NO.1, 3RD FLOOR, INDIAN EXPRESS BUILDING QUEENS ROAD, BENGALURU-560 001 A COMPANY REGISTERED UNDER COMPANIES ACT, 1956. ... PETITIONER (BY SRI.SOURABH KUMAR, ADV. FOR SRI.MOHAMMED SHAKEEB M. MULLA, ADV.) AND: 1 . UNION OF INDIA THROUGH SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NO. 137 NORTH BLOCK, NEW DELHI-110 001 2 . THE PRINCIPAL COMMISSONER OF CENTRAL GOODS AND SERVICES TAX BENGALURU, WEST COMMISSIONERATE DIVISION-II, 1ST FLOOR, BMTC COMPLEX BANANSHANKARI, BENGALURU-560 070 - 2 - 3 . THE ADDITIONAL COMMISSONER OF CENTRAL GOODS AND SERVICES TAX BENGALURU WEST COMMISSIONERATE DIVISION-II 1ST FLOOR, BMTC COMPLEX BANASHANKARI BENGALURU-560 070 ... RESPONDENTS (BY SRI.JEEVAN J. NEERALAGI, ADV. ) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDER-IN-ORIGINAL NO.60/2021-22 DATED 04.02.2022 VIDE ANNEXURE-A PASSED BY THE R-3. THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

The petitioner is registered with the Goods and Service Tax (GST) with GSTIN 29AACCA8907B1ZUG. On the ground that the petitioner had claimed abnormally high transitional credit, case was taken up for scrutiny. Pursuant to the same, the impugned order has been passed. Aggrieved by the same, the instant writ petition is filed on the ground that sufficient opportunity was not given to the petitioner to defend its case and that it is not liable to pay the said amounts.

Learned counsel for the respondents draws the attention of this Court to the impugned order wherein, it is noticed that an opportunity of personal hearing was given to the petitioner on 24.11.2021, 16.12.2021 and on 29.12.2021. However, the petitioner has not appeared before the authorities and presented its case and in its absence, the impugned order has been passed holding the petitioner liable to pay the amounts as decided therein.

However, it is contended by the petitioner that for the reasons beyond its control, it could not avail of the personal hearing accorded by the department and it has got good case on merit and if it were granted an opportunity, it would be able to present its case. It is further submitted that if the petitioner is not heard, it will be put to irreparable loss and injury and in fact in law, it is not liable to pay amounts as ordered in the impugned order.

Given the peculiar facts and circumstances of the case, I am of the opinion that an opportunity of hearing should be accorded to the petitioner and it would serve the interest of justice. Hence, the following:- ORDER (i) The impugned order dated 04.02.2022 bearing File No.GEXCOM/ADJN/GST/JC/100/2021, OIO No.60/2021-22 (GST), DIN No.20220257YU000032323F / 318/2022 is hereby set aside. (ii) The matter is remanded back to respondent No.3 to hear the petitioner afresh and take appropriate decision in accordance with law as expeditiously as possible. (iii) Petitioner shall appear before respondent No.3 on 15.06.2022 without any further notice and the petitioner shall co-operate for early disposal of the case. (iv) The writ petition is disposed of accordingly. JUDGE

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