M/S Aadam Enterprises vs. State Of Karnataka

In Writ Petition No.16742/2021, the petitioner seeks the following reliefs:- a) Issue a WRIT in the nature of Certiorari to quash the Order in Case No. ACCT/ENF- 01/W2/MNG/VIG-03/2021-22 Dated 31-08-2021 passed by the 2nd Respondent vide Annexure – A, and pass consequential Orders in the interest of justice and equity. b) Issue any WRIT or ORDER or DIRECTION as this Hon’ble Court deems fit in the circumstances of the case in the interest of justice and equity. HC-KAR NC: 2025:KHC:49281

When the matters came up before this Court on 29.09.2021, this Court passed the following order:- Petitioner contends that though order is passed at Annexure-A confiscating the goods, no notice to him has been issued and in order to avail of the rights under Section 130(2) of the Karnataka State Goods and Services Tax Act, 2017 notice to the petitioner is mandatory. Accordingly, it is submitted that as no notice has been issued, the proceedings are liable to be set aside. Learned AGA submits that necessary verification would be done and submission would be made. It is pointed out that the goods that are confiscated are such that its quality would deteriorate if it is stored in the present form. Learned counsel for the petitioner submits that subject to the outcome of the petition, necessary orders may be passed so as to ensure that the value of the goods are protected. Taking note of the submission that the quality of the goods would deteriorate, subject to further consideration, the respondent - Authority to auction the goods that are confiscated and while auctioning, necessary steps to be taken to ensure that the reserved price is fixed after taking note of the market value as is available in the public domain. The amount that is realised upon auction to be deposited in an interest bearing fixed deposit. Petitioner is to be intimated of the date of auction and is entitled to be present in the auction proceedings. It is made clear that HC-KAR NC: 2025:KHC:49281 the auction being made, is not an auction in terms of the statutory scheme. List this matter after Dasara Vaction, 2021. Statement of objections to be filed in the interregnum.

In pursuance of the said order, the respondents have auctioned the subject goods and the amount is deposited in the Treasury. Though several contentions have been urged by the petitioners in the present petitions, having regard to the availability of equally efficacious and alternative remedy as against the impugned orders, by way of an appeal under Section 107 of the Karnataka State Goods and Services Tax Act (for short “KGST Act”), without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of these petitions by issuing certain directions.

In the result, I proceed to pass the following:- ORDER i) Both the Writ Petitions are disposed of. ii) Liberty is reserved in favour of the petitioners to file appropriate appeals before the Appellate Authority. HC-KAR NC: 2025:KHC:49281 iii) If such appeals are filed by the petitioners within a period of three months from today, the entire period commencing from the date of filing the present petitions on 08.09.2021 till today shall be excluded for the purpose of limitation under Section 14 of the Limitation Act. iv) In addition thereto, in the event the petitioners make a request to the respondents for disbursement/release of the amount realised from auction of the goods, the respondents are directed to disburse/release the entire amount together with accrued interest, if any, in favour of the petitioners immediately, without any delay. (S.R.KRISHNA KUMAR) JUDGE Bss List No.: 2 Sl No.: 9