M/S. Jyoti Enterprises vs. Deputy Commissioner Of Commercial Taxes - Karnataka High Court, 29 January 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC:4060 WP No. 24030 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO.24030 OF 2024 (T-RES) BETWEEN: M/S. JYOTI ENTERPRISES REGISTERED UNDER INDIAN PARTNERSHIP ACT, 1932, HAVING REGISTERED OFFICE AT NO. 46/2, KAVERI LAYOUT, NEAR THIRUMALA DAABA, DODDABETTAHALLI, BENGALURU-560 097, REP. BY MANAGING PARTNER, MR. TRILOK KUMAR JHA. …PETITIONER (BY SRI. KARTHIK R., ADVOCATE) AND: DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-6.3, DGSTO-6, KIADB BUILDING, 3RD FLOOR, 14TH CROSS, 4TH PHASE, PEENYA 2ND STAGE, BENGALURU-560 058. …RESPONDENT (BY SRI. K. HEMAKUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER NO.3027, DATED 13.03.2024 PASSED BY THE RESPONDENT AT ANNEXURE C DCCT(A)-6.3/DGSTO-6/23-24 IN DENYING THE INPUT FOR CREDITS ON THE PURCHASES MADE BY THE PETITIONER FROM VARIOUS SUPPLIERS AND TO FURTHER DIRECT THE RESPONDENT IN GRANT INPUT TAX CREDITS ON THE PURCHASES MADE BY THE PETITIONER FROM VARIOUS SUPPLIERS AND ETC. Digitally signed by KAVYA R Location: High Court of Karnataka - 2 - NC: 2025:KHC:4060 WP No. 24030 of 2024 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT

ORAL ORDER The petitioner, a partnership Firm, registered under the Karnataka Goods and Services Tax Act, 2017 (for short 'KGST Act, 2017'), is before this Court under Article 226 of the Constitution of India, questioning the Order bearing No.DCCT (A)-6.3/DGSTO-6/2023-24 dated 13.03.2024 (Annexure-C) passed under Section 73(9) of the KGST Act, 2017, determining the tax liability, interest and penalty.

Heard Sri. Karthik.R., learned counsel for the petitioner through video conference and Sri. K.Hemakumar, learned Additional Government Advocate for the respondent. Perused the writ petition papers.

Learned counsel for the petitioner would submit that the petitioner was issued with show-cause notice dated 30.01.2024 (Annexure-A) under Section 73(1) of NC: 2025:KHC:4060 the KGST Act, 2017, providing 30 days time to file objection.

The petitioner is said to have filed objection/reply on 13.03.2024 and on the same day impugned order under Section 73(9) of the KGST Act, 2017 (Annexure-C) is passed. Learned counsel for the petitioner would contend that the material produced by the petitioner is not taken into consideration while determining the liability of the petitioner. Learned counsel further submits that the supplier, from whom the petitioner has purchased certain goods, has not shown proper details and the Adjudicating Authority also failed to verify the same properly. Further, learned counsel places reliance on the decision of the Hon'ble Apex Court in the case of State of documents and it is for respondent-Authority to verify the same and take a decision in the matter. NC: 2025:KHC:4060

Learned Additional Government Advocate Sri. K.Hemakumar on instruction submits that the objection was filed by the petitioner on 13.03.2024 on which date, Order under Section 73(9) of the KGST Act, 2017 was passed and apparently the reply/objection has not been taken into consideration.

Learned Additional Government Advocate submits that if this Court decides to remand the matter, let it be an open remand and there may be a direction to consider all contentions of the parties.

On hearing the learned counsels for the parties on perusal of the entire writ petition papers, in the instant case, I am of the view that the petitioner ought to be given an opportunity to file an additional objection/reply and to direct the respondent-Authority to consider the objection/reply and the material that would be produced by the petitioner before passing Order under Section 73(9) of the KGST Act, 2017. NC: 2025:KHC:4060

Admittedly, the petitioner has filed objection to the show-cause notice dated 30.01.2024, on the same date on which the impugned order under Section 73(9) of the KGST Act, 2017 is passed. Moreover, a decision on which the learned counsel for the petitioner places reliance i.e., Ecom Gill Coffee Trading P Ltd. (supra) permits demonstration of genuineness of the transaction by relying upon other documents and respondent-Adjudicating Authority could verify the same.

In light of the above, the following: ORDER (a)Writ petition is allowed in part; (b)Impugned order at Annexure-C bearing No.DCCT (A)-6.3/DGSTO-6/2023-24 dated 13.03.2024 is quashed; (c) The petitioner shall appear before the respondent on 14.02.2025 at 11.00 a.m. and liberty is granted to the petitioner to file additional objection/reply and supporting NC: 2025:KHC:4060 documents. Thereafter, the respondent shall proceed in accordance with law.

All contentions of the parties are left open. (S.G.PANDIT) JUDGE SMJ List No.: 1 Sl No.: 4