M/S. Kineta Global Limited vs. The Union Of INDIA

WP/21458/2023HC TelanganaGSTCNR HBHC01037141202323 August 2024Bench: SUJOY PAUL,NAMAVARAPU RAJESHWAR RAO5 pages

For Petitioner: SRI MD' NAZEERUDDIN KHAN

AI SummaryDismissed

Facts

The petitioners, M/s. Kineta Global Limited and its directors and chartered accountant, filed a writ petition challenging a Show Cause Notice (SCN) dated April 20, 2023, a letter dated April 13, 2023, and an order dated April 29, 2023, rejecting a refund application. The petitioners sought to quash these documents, arguing they were issued without authority of law and violated due process by withholding investigative material. They also sought directions to quash the SCN, quash the refund rejection order, and direct the respondents to reply to an application filed under Section 67(10) of the GST Acts and sanction the refund of involuntarily paid amounts. The respondents included the Union of India, CBIC, Additional Director of GST Intelligence, Principal/Joint Commissioner of Central Taxes, and Assistant Commissioner of State Taxes.

Held

The Court did not delve into the merits of the case. The learned counsel for the petitioners sought to withdraw the writ petition with the liberty to file afresh to challenge a subsequent order. In the absence of any opposition from the respondents, the prayer for withdrawal was allowed. Consequently, the writ petition was dismissed as withdrawn with the liberty granted to the petitioners. No costs were imposed. The operative directions sought by the petitioners regarding quashing the SCN, letter, and refund rejection order, and directing the respondents to reply to the application under Section 67(10) and sanction the refund, were not considered or decided due to the withdrawal of the petition. Any issue expressly left undecided is not recorded.

Key Issues

1. Whether the Show Cause Notice (SCN) dated April 20, 2023, issued by Respondent Nos. 3 and 4, is without the authority of law and whether the refusal to provide a reply on the disclosure of investigative material is illegal, considering the petitioners' claim that tax already discharged is correct and complete? 2. Whether the letter dated April 13, 2023, issued by Respondent No. 3, is without authority of law and a gross violation of due process for not disclosing investigative material mandated by law for fair adjudication? 3. Whether the impugned order in RFD6 dated April 29, 2023, rejecting the refund filed within limitation in respect of payments made involuntarily without a notice of demand during investigations, is liable to be quashed, and whether the refund should be sanctioned? Petitioner's Arguments: The petitioners argued that the SCN, letter, and refund rejection order were issued without legal authority and violated due process by withholding crucial investigative material. They contended that the tax had already been discharged correctly and completely, and the refund was wrongly rejected despite being filed within the limitation period for involuntarily paid taxes. They relied on principles of natural justice and the requirement for disclosure of evidence. Respondents' Arguments: The judgment does not record any specific arguments made by the respondents.

Sections Cited

Section 67(10)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

\ t 3411 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) FRIDAY, THE TWENTY THIRD DAY OF AUGUST TWO THOUSAND AND TWENTY FO,UR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU'RAJESHWAR RAO WRIT PETITION NO:21458 oF 2023 Between: AND 1. M/s. Kineta Global Limited, Represented herein bv its Director' Mr' Vallabhaneni gaf asnowrv'i"q-eO SS'V"i* S/o Mr. .loiaiah Naidu Address at Plot No. 5'1-54, 4th rr"J,.?i""ltJ"r6*"-*' %"tt'teswara Hills' Road No 3' Ban.iara Hills, HYderabad - 500 034' 2. tvlr. Vallabhaneni Balashowry, Managing Directornddress at Plot No' 51-54' 4th Floor, Kineta tower"s:''\i;k;i;il;ti Hitts' Roao No 3' Banjara Hills' Hyderabad - 500 034. 3. Ir/lr Badveti Venkateswarlu, General M.anager .(Finance and Accounts) Address at ptot No. SO, r,i"ri,iiri'Enctave, Niza"mpet, Hyderabad - 500 085. 4. tvlr Bondalapati srinivasa Rao, Chartered.Accountant Address at Flat No 30l ' ' Cf,"kkiii, NNR Est"tet, Shanthinagar' Hyderabad - 500 028' .....PETITIONERS 1. The Union of lndia, Represented herein by the Secretarv' Department of Revenue, Ministry ot rina'iJeEov"i*"nt of lndia' North Block' New Delhi 110 001 . 2. central Board of lndirect Taxes and customs, Represented herein by the Chairman Department "i hA;;;' M'"idtw "t Finance' Government of lndia' North Block, New Delhi 110 00'1' 3. The Additional Director of GST lntelligence' Directorate of General of GST " rriiIrrG"",l;"'iivo-"iii,io a;rt u;ii;BEgJmpet H.No t-11-222t4. Lane opp. iJOii eant, Begumpet, Hyderabad - 500 016' 4. The Principal / Joint Commissioner of Cenlral Taxes Department of Revenue' - ilii;il;f"nnrnc" coreinti"ni ot rnoi" Hvderabad GST Commissionerate Esib'h;;;;, tB strairi, noiJ' Basheerbash Hvderabad 500 004' The Assistant Commissioner of State Taxes, Abids SGST Cin:le, 4 floor, Old Kakatiya Hoterl Nampally Station Road, Nampally Hyderabad 500 001. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances statr:d in the affidavit filed therewith, the High court may be pleased to issue a writ of mandamus, order or direction to. i. euash the rmpugned scN (ANNEXURE A) for being without the authority of raw anri the refusar to provide a repry on rhe discrosure of investigative materiar iflegar and the demands raised without authority of law and tax already discharged to be correct and complete, ii. Quash the jetter dated 13 Apr 2023 (ANNEXURE B) for being without authority of raw and gross vioration of due process of raw requiring disclosure of investigative material mandated in law to ensure fairness in adjudication. iii. Quash the rmpugned order in RFD6 dated 29 Apr 2023 (ANNEXURE D) rejecting the refund fired within rimitation in respect of payments made involuntariry without a notice of demand during the course of investigations and direct that the szrme be sanctioned in accordance with raw, or the arternative to the above, and in the event this Honbre court were to hord that the rmpugned SCN is to survive, iv. Direct Respondent No.3 and 4 to repry in a poinlwise manner in respect of the apprication fired by petitioner under ser:tion 67(10) of GST Acts dated 15 lr,4ar 2023 (ANNEXURE C), v. Direct Respondent No. to sanction refund of amount invoruntariry paid vide DRC3 chalan numbers and dates respectively AD361120001886F of 18-Nov-20, AD36112oo0.lBZ2o of 1B_ Nov-20, AD361220003'1 108 of 22-Dec-2o, AD361220003 1132 of 22-Dec-2o, 5 AD3605220O2313Q of 1o-liay-22' and (ANNEXURE El to E6) vi Pass AD3606220639501 of 23-Jun-22 i'e !A NO:10F 2023 PetitionUnderSeclionl5lCPCprayingthatinthecircumstancesstatedin the affidavit filed in support of the petition' the High Court may be pleased to restraintheRespondentNo'5fromproceedingwithadjudicationinthematterof impugned SCN issued by Respondent No' 3 and 4' Counsel for the Petitioners : SRI MD' NAZEERUDDIN KHAN Counsel for the Respondent No'1 : SRI GADI PRAVEEN KUMAR' DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos'2 to 4 : M/s' DOMINIG FERNANDES' STANDING COUNSEL FOR CENTRAL EXCISE Counsel for the Respondent No'S : SPL' G'P FOR COMMERCTAL TAX

The Couft made the following ORDER

- :' To SA N/P THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO TVRIT PETITION No.2145I of 2023 ORDER (per l{on'ble Sp,J) Sri I\4D Nazeeruddin Khan, learned counsel for the petitioners, seeks to withdraw this writ petition with the liberty to file afresh to challenge the subsequent order. 2 In the absence of opposition, prayer allowed.

Accorclingly, this Writ petition is dismissed as withdrawn with the liberty prayed for. No costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed //// . N. SRIHARI ASSTSTANTgEGtSTRAR / SECTiON OFFICER '1 . Two CC's to SPL. G.P for COMA,4ERCIAL TAX, High Court for the State of Telangana at Fyderabad. (OUT)

One CC to SRI [/D. NAZEERUDDIN KHAN, Advocate tOpUC]

One CC to SRI GADI PRAVEEN KUIVAR, DEPUTY SOL|C|TOR GENERAL oF rNDrA [OPUC]

One CC to lr//s DOIVINIC FERNANDES, S.C. for Central Excise (OPUC)

Two CD Copie:;

/ HIGH COURT DATED:2310812024 ORDER 1t1 r: iTA 'e s c e ti I 15 0rc i024 j- \. t.+ .t' ,f '1 -2 WP.No.21458 of 2023 DISMISSING THE W.P AS WITHDRAWN WITHOUT COSTS. , /h L? LI /tI /u l l l I l ) I I i j I i I I I I I I t I I I I I I I I , : Or

Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.