Balachandra Yallappa Salabhavi vs. Assistant Commissioner Of Commercial Tax - Karnataka High Court, 27 July 2021

Cause title — parties, addresses and appearances

1 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 27TH DAY OF JULY, 2021 BEFORE THE HON’BLE MR.JUSTICE S.R. KRISHNA KUMAR W.P. No. 147755/2020 (T-RES) BETWEEN: BALACHANDRA YALLAPPA SALABHAVI, AGE: 41 YEARS, CONTRACTOR NO. 231, NEAR MOUNESHWARA MATH, LINGANABANDI, YELBURGA (TQ), KOPPAL (DIST.), KARNATAKA-583 236, INDIA. - PETITIONER (BY SRI SHASHANK S. HEGDE, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF COMMERCIAL TAX, LOCAL GOODS AND SERVICES TAX OFFICE-510, KOPPAL-583 231. 2. UNION OF INDIA, MINISTRY OF FINANCE, GOVT. OF INDIA, NORTH BLOCK, NEW DELHI-110 001 REPRESENTED BY SECRETARY. 3. GOVERNMENT OF KARNATAKA, MINISTRY OF FINANCE, BENGALURU-560 001, REPRESENTED BY SECRETARY. 4. CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY SECRETARY. - RESPONDENTS (BY SRI V.S. KALASURMATH, HCGP FOR R1 & R3, SMT. HEMALEKHA K.S. ADVOCATE FOR R2, SRI GIRISH S. HULAMANI, ADVOCATE FOR R4) 2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 04.02.2020 VIDE ANNEXURE-A & ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT, MADE THE FOLLOWING:

ORDER

In this writ petition, the petitioner has sought for the following reliefs. (A) Quash as far as the petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise the impugned order dated 04.02.2020 issued by the Learned First Respondent Ordering blocking of input tax credit in the electronic credit ledger of the petitioner, enclosed in Annexure-A; (B) Strike down, as far as the petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, section 16(4) of CGST Act 2017, enclosed in Annexure-B; (C) Strike Down, as far as the petitioner is concerned by an appropriate writ or order in the nature of certiorari or otherwise, Rule 86A of CGST Rules 2017, enclosed in Annexure-C to the extent it provides conclusion of proceedings without giving an opportunity of hearing to the Registered Person; (D) Direct the Learned First Respondent by an appropriate writ or Order in the nature of Mandamus or otherwise, to unblock the ITC of Rs.13,87,118/- and permit debit in the electronic credit ledger of the petitioner;

Heard learned counsel for the petitioner, learned counsel for the respondent and perused material on record.

Though several contentions have been urged by both sides in support of their respective claims and the issues involved in the present petition, a perusal of the impugned order at Annexure-A dated 04.02.2020 will indicate that apart from the fact that the same is a cryptic, unreasoned and non speaking order which has been passed without sufficient application of mind, the said order also indicates that no opportunity was granted to the petitioner and he was not heard prior to passing the impugned order which is violative of principles of natural justice. Under these circumstances, without expressing any opinion on the merits/ demerits of the rival contentions, I deem it appropriate to set aside the impugned order at Annexure-A and remit the matter back to the respondent No.1 for consideration afresh and pass speaking order after granting sufficient opportunity to the petitioner and after hearing

4 him in accordance with law, within a period of three months from the date of receipt of a copy of this order.

In the result, I pass the following order. ORDER i) Writ Petition is partly allowed; ii) Impugned order at Annexure-A is hereby quashed; iii) Matter is remitted back to the respondent No.1 for consideration afresh and pass a speaking order after granting sufficient opportunity to the petitioner and after hearing him in accordance with law, within a period of three months from the date of receipt of a copy of this order. In view of disposal of the petition, I.A.No. 2/2020 also stands disposed of. JUDGE bvv