BharatTaxGST

M/S Kum Internationals vs. Government Of Karnataka

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WP/6601/2020HC KarnatakaGSTCNR KAHC01015457202030 May 2022Bench: M.I.ARUN4 pages
For Petitioner: SRI.Y. C. SHIVAKUMAR, ADVFor Respondent: SRI.K. HEMA KUMAR, AGA FOR R1 & R2; SMT. VANITA K. R., ADV. FOR R3 & R4

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Cause title — parties, addresses and appearances
- 1 - IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF MAY 2022 BEFORE THE HON’BLE MR. JUSTICE M.I.ARUN WRIT PETITION No. 6601 OF 2020 (T-RES) BETWEEN: M/S KUM INTERNATIONALS SY NO 439/2 9TH K M MYSORE ROAD BADANAGUPPE VILLAGE CHAMARAJANAGARA – 571 313 REP BY SRI SRIGIRI PARTNER ... PETITIONER (BY SRI.Y. C. SHIVAKUMAR, ADV.) AND: 1 . GOVERNMENT OF KARNATAKA REP BY COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), DEPT OF COMMERCIAL TAXES VANIJYA TERIGE KARYALAYA KALIDASA ROAD, GANDHINAGAR BENGALURU – 560 009 2 . ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT) - 19 SOUTH ZONE VANIJYA TERIGE KARYALAYA - II B BLOCK ROOM NO 405 KORMANGALA, BANGALORE – 560 047 3 . THE COMMISSIONER OF CENTRAL TAX MYSORE COMMISSIONERATE NO S1 AND S2 VINAYA MARGA, MYSORE COMMISSIONERATE SIDDARTHA LAYOUT MYSORE – 570 011 - 2 - 4 . ASSISTANT COMMISSIONER /DEPUTY COMMISSIONER OF CENTRAL TAX MYSORE RURAL DIVSION MYSORE COMMISSIONERATE NO S1 AND S2 VINAYA MARGA SIDDARTHA LAYOUT MYSORE – 570 011 ... RESPONDENTS (BY SRI.K. HEMA KUMAR, AGA FOR R1 & R2; SMT. VANITA K. R., ADV. FOR R3 & R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE INSPECTION PROCEEDINGS DTD.24.10.2019 (ANNEXURE-A) CONDUCTED BY THE R-2 AND DIRECT RESPONDENTS TO GIVE A REASONABLE OPPORTUNITY OF HEARING TO THE PETITIONER AND THEN TO PROCEED AS PER LAW. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

The petitioner is a partnership firm engaged in manufacturing and exports of Granite Slabs, Monuments and the like and it is a 100% export oriented unit. On 23.10.2019, the unit of the petitioner was visited and the books of accounts were examined by respondent No.2 for claiming wrong input tax credit. The adjudication proceedings subsequent to said inspection are yet to be initiated. Subsequent to the said inspection, the petitioner has deposited a sum of Rs.98,98,163/- towards reversal of input tax credit. The instant writ petition is filed by the petitioner alleging that the said amount was paid under coercion as there was threat of arrest and the petitioner is not liable to pay the said amount to the respondent authorities.

2.

Per contra, learned AGA representing respondent No.2 submits that there was no coercion or threat of arrest against the petitioner and the said amount has been voluntarily deposited by the petitioner and it is clear from the letter issued by the petitioner which is annexed to the writ petition as Annexure – A.

3.

Be that as it may, during the course of the arguments, the learned counsel for the petitioner submits that pursuant to adjudication if any, and subject to the result of such adjudication, the amount paid may be adjusted and upon adjudication, if the authorities were to come to the conclusion that petitioner was not required to deposit such amount, the petitioner may be permitted to adjust the amount paid towards future liabilities.

4.

Learned AGA has no objections for the same.

5.

Though represented, learned counsel for the respondent Nos.3 and 4 is absent.

6.

Hence, the following:- ORDER (i) Upon adjudication, if the authorities were to conclude that the petitioner is not liable to pay any of the amount deposited by it subsequent to 23.10.2019, the same shall be adjusted towards future liabilities of the petitioner in respect of GST. (ii) The writ petition stands disposed of accordingly. JUDGE

MH/-

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.