Allowed

Sree Nandi Granites v. Joint Commissioner of GST (Appeals)

Karnataka HC2 Feb 2023WP/146/2023

Case brief

AI extract

What is this about?

Writ petition under Article 227 sought quashing of GST registration cancellation order due to lack of notice and application of mind. Court held contradictory statements in order belied respondent defense.

What did the court decide?

Impugned order dated 13.10.2020 is quashed restoring proceedings to second respondent for reconsideration of cancellation question with observation on appeal ground.

Sree Nandi Granites Vs Joint Commissioner of GST… — GST and Indirect Tax | Karnataka HC (2023)

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WP No. 146 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 2^ND DAY OF FEBRUARY, 2023

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD

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WRIT PETITION NO. 146 OF 2023 (T-RES)

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BETWEEN:

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SREE NANDI GRANITES (FIRM REG. UNDER INDIAN PARTNERSHIP ACT) NEAR GOVT. P.U. COLLEGE, GOPADY VILLAGE, KOTESHWARA, KUNDAPURA TALUK, UDUPI DISTRICT-576 222. REP. BY MG. PARTNER – MR. PRASHANTH SHETTY.

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…PETITIONER

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(BY SRI. MAHESH R UPPIN, ADVOCATE)

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Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA

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AND:

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JOINT COMMISSIONER OF GST (APPEALS) OFFICE OF THE COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), NO.71, CLUB ROAD, BELAGAVI-590 001.

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THE SUPDT. OF CENTRAL EXCISE AND CENTRAL TAX LVO 290, KUNDAPURA, UDUPI DISTRICT-576 201.

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WP No. 146 of 2023

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DY. COMMISSIONER OF CENTRAL EXCISE AND CENTRAL TAX UDUPI DIVISION, VISHNU PRIYA BUILDING, L.B.S. MARG, AJJARKAD, UDUPI-576 101.

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…RESPONDENTS

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(BY SRI.JEEVAN J. NEERALGI., ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 1.10.2020 BEARING REFERENCE NUMBER ZA291020430158X PASSED BY THE R2 MARKED AS ANNEXURE-B AND THE ORDER IN APPEAL BEARING NO.BGM-JJ-JC-19-2022-23-GST (APPEAL NO.29/2022/MR/GST) DATED 19.10.2022 ISSUED BY THE R1 MARKED AS ANNEXURE-G.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioner’s GST registration is cancelled

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by order dated 13.10.2020 [Annexure-B,] and the petitioner’s appeal as against this order is rejected by the first respondent on 19.10.2022 essentially on the ground that the petitioner’s appeal is beyond the time provided for under the Statute. The petitioner’s grievance as against the order dated 13.10.2020 is not examined on merits.

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WP No. 146 of 2023

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Sri. Mahesh R Uppin, the learned counsel for the petitioner, submits that even from the impugned order dated 13.10.2020, it can be seen that the petitioner did not have the opportunity to respond to the Show Cause Notice for cancellation, and in this regard he submits that if in the first part of the order dated 13.10.2020, there is a reference to a purportedly reply of the petitioner on 13.10.2020, in the very next sentence, it is recorded that the petitioner has not responded to the Notice when in fact, the petitioner is not served with the Notice.

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Sri. Mahesh R Uppin further submits that because the petitioner can demonstrate both lack of notice and application of mind, this Court must interfere with the first order dated 13.10.2020, and if this Court is persuaded to interfere with this order on these grounds, the order in appeal will not be an impediment because it is dismissed only on the ground of delay.

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WP No. 146 of 2023

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Sri. Jeevan J Neeralgi, the learned counsel for the respondent, attempts to refute the assertion that there is lack of opportunity or application of mind contending that there is response on 13.10.2020 and on the very day the registration is cancelled. However, the contradictory statements in the impugned order as also the proximity between the date of the Notice dated 01.10.2020 and the date of cancellation of registration dated 13.10.2020 belies the defense while supporting the petitioner’s case. Therefore, this Court must interfere with the order dated 13.10.2020 and restore the proceedings for reconsideration by the second respondent with the observation that the consideration of the petitioner’s cause against cancellation shall not be returned on the ground that the appeal is dismissed. The petitioner must also be put on terms. Hence the following:

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WP No. 146 of 2023

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ORDER

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[a] The petition is allowed, and the impugned order dated 13.10.2020 [Annexure-B] is quashed restoring the proceedings to the second respondent for reconsideration of the question of cancellation of the petitioner’s registration in the light of this Court’s observation.

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[b] The petitioner shall appear before the second respondent without further notice on 27.02.2023, and shall also be at liberty to file statement of objections, if any, on such date.

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Sd/JUDGE

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AN/-

Sree Nandi Granites v. Joint Commissioner of GST (Appeals)

Case brief

What is this about?

What did the court decide?

Sree Nandi Granites v. Joint Commissioner of GST (Appeals)

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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