M/S Abb Gobal Business Services vs. Joint Commissioner Of Commercial Taxes (Appeals-6) - Karnataka High Court, 04 April 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC:13475 WP No. 6263 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 6263 OF 2025 (T-RES) BETWEEN: M/S ABB GOBAL BUSINESS SERVICES AND CONTRACTING INDIA PRIVATE LIMITED HAVING OFFICE AT PLOT NO. 4A, 5 AND 6, 2ND STAGE, PHASE IV, PEENYA INDUSTRIAL AREA, BENGALURU – 560 058. REPRESENTED BY ITS AUTHORIZED REPRESENTATIVE PRANESH T N - SENIOR MANAGER TAXATION, RESIDING AT GF04, 19 KPT VIJAYA PARADISE, MV GARDEN KAMALA NAGAR, BENGALURU – 560 079. …PETITIONER (BY SRI. G. SHIVADASS, SENIOR ADVOCATE FOR SRI. PRASHANT SABARISH SHIVADASS, ADVOCATE) AND: 1. JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS-6) TTMC COMPLEX, SHANTHINAGARA, BENGALURU – 560 027. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-075, DGSTO-06, KIADB BUILDING, 1ST FLOOR, 14TH CROSS, PEENYA 2ND STAGE, BENGALURU – 560 058. 3. JOINT COMMISSIONER OF COMMERCIAL TAXES, DGSTO-06, KIADB BUILDING, 1ST FLOOR, 14TH CROSS, PEENYA, 2ND STAGE, BENGALURU – 560 058. …RESPONDENTS (BY SRI. HEMA KUMAR.K, AGA) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:13475 WP No. 6263 of 2025 THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER IN APPEAL DTD 28.10.2024 ISSUED BY THE R-1 ENCLOSED AT ANNX-A TO THE EXTENT PREJUDICIAL TO THE INTEREST OF THE PETITIONERS AS BEING ISSUED WITHOUT JURISDICTION AND IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:-

“ (a) To issue order(s), directions, writ(s) in the nature of Certiorari or any other writ quashing the Impugned Order in Appeal dated: 28.10.2024 issued by the Respondent No.1 enclosed at Annexure-A to the extent prejudicial to the interest of the petitioners as being issued without juri iction and in violation of principles of natural justice;

(b) To issue order(s), directions, writ(s) in the nature of Certiorari or any other writ quashing the Impugned refund rejection order dated: 111.12.2023 issued by the Respondent No.2 enclosed at Annexure-B to the extent prejudicial to the interest of the Petitioners as being without juri iction;

(c) To issue order(s), directions, writ(s) in the nature of mandamus or any other writ holding that the services provided by the Petitioner are covered under Section 13(2) of the IGST by virtue of the same not being covered under Section 13(3) to Section 13(13) of the IGST Act and consequently qualify as export of services; NC: 2025:KHC:13475 (d) To issue order(s), directions, writ(s) in the nature of mandamus or any other writ holding that the petitioner is eligible for interest under Section 56 of the CGST Act, 2017;

(e) To issue order(s), directions, writ(s) or any other relief as this Hon’ble Court deems it fit and proper in the facts and circumstances of the case in the interest of justice.”

Heard learned Senior counsel for the petitioner and learned AGA for the respondents and perused the material on record.

The issue involved in the present petition is rejection of refund claim to the petitioner by the 2nd respondent vide Annexure- B, by which, 2nd respondent rejected the refund claim of the petitioner, which was confirmed by the 1st respondent – Joint Commissioner (Appeals), aggrieved by which, the petitioner is before this Court by way of the present petition.

A perusal of the impugned order will indicate that the refund claim of the petitioner was primarily rejected on the ground that the Joint Commissioner had directed the 2nd respondents not to grant refund vide instructions / directions dated 07.12.2023. When the matter came up before this Court on the last date of hearing on 28.03.2025, the following order is passed:- NC: 2025:KHC:13475 Heard Sri. G. Shivadass, learned Senior counsel for the petitioner and Sri. Hema Kumar, learned AGA for the respondents-State.

Sri. B.M. Nagaraj, Joint Commissioner of Commercial Taxes, DGSTO-6, is physically present along with learned AGA before the Court and submits that the Order/Note dated 07.12.2023 would be unconditionally withdrawn by him and that he would issue necessary directions to respondent No.2- Assistant Commissioner / appropriate authority to sanction refund of the subject claim in favour of the petitioner.

The aforesaid submission is placed on record.

Re-list on 04.04.2025 at 2:30 p.m.

It is submitted by the learned AGA that in pursuance of the aforesaid order passed by this Court, the 3rd respondent - Joint Commissioner of Commercial Taxes, DGSTO-06 has withdrawn the aforesaid order / note dated 07.12.2023 and sanctioned the refund in favour of the petitioner, which has been credited to the account of the petitioner as evident from the rectification order and payment order dated 03.04.2025 filed by the respondents and as such, the impugned order deserves to be modified in terms of the rectification order and payment order referred to supra.

Learned Senior counsel for the petitioner submits that in addition, in view of the refund already granted in favour of the NC: 2025:KHC:13475 petitioner, liberty may be reserved in favour of the petitioner to seek interest on the refund claim in accordance with law by taking recourse to such remedy as available in law. The said submission is placed on record.

In view of the aforesaid facts and circumstances of the case, I deem it just and appropriate to dispose of this petition by issuing certain directions in this regard.

In the result, I pass the following:- ORDER (i) Petition is hereby disposed of in terms of the rectification order and payment order dated 03.04.2025 issued / passed by the 2nd respondent. (ii) Liberty is reserved in favour of the petitioner to claim interest etc., by taking recourse to such remedies as available in law. (S.R.KRISHNA KUMAR) JUDGE

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