Disposed

M/S Ambligola Project Private Limited v. Union of India

Karnataka HC3 Dec 2024WP/2464/2024

Case brief

AI extract

What is this about?

A taxpayer denied input tax credit for delayed filing of GST returns for FY 2019-20 challenged Section 16(4) of the CGST/SGST Act as unconstitutional. Following the Finance Act, 2024 amendments extending claim timelines, the court set aside the impugned order, relegated the petitioner to reply to the show cause notice within one month.

What did the court decide?

Impugned order set aside; petitioner remanded to show cause notice stage with one month to reply; respondents directed to pass suitable orders within two months per amended Finance Act provisions and

M/S Ambligola Project Private Limited Vs Union of India — GST and Indirect Tax | Karnataka HC (2024)

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NC: 2024:KHC:49549 WP No. 2464 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3^RD DAY OF DECEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 2464 OF 2024 (T-RES)

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BETWEEN:

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M/S AMBLIGOLA PROJECT PRIVATE LIMITED, NO.61, BHADRAPPA LAYOUT, 4^TH FLOOR, NEAR ANAND BHAVAN,

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BENGALURU-560 094. (REP BY ITS DIRECTOR PRATHEEK SHETTY)

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…PETITIONER

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(BY SMT. NEHA RAO, ADVOCATE FOR SRI. ATUL KRISHNA RAO ALUR, ADVOCATE)

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AND:

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Digitally signed by H K HEMA Location: High Court of Karnataka

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UNION OF INDIA, THROUGH ITS SECRETARY (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001.

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THE GST COUNSEL, THROUGH ITS CHAIR PERSON, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110 001.

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THE STATE OF KARNATAKA REP BY THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU-560 001.

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NC: 2024:KHC:49549 WP No. 2464 of 2024

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-150, NO.80, 2^ND FLOOR, SAMAYA TOWERS, KODIGEHALLI MAIN ROAD, TATANAGAR, BENGALURU-560 092.

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…RESPONDENTS

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(BY SRI.SHANTHI BHUSHAN, DSGI FOR R1; SRI. ARVIND V.CHAVAN, ADVOCATE FOR R2; SMT. JYOTI M.MARADI, HCGP FOR R3 & R4)

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THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE THIS HON'BLE COURT MAY ISSUE A WRIT OF DECLARATION OR ANY OTHER APPROPRIATE WRIT OR DIRECTION DECLARING THE PROVISIONS OF SECTION 16(4) OF CGST ACT/SGST ACT, 2017 ENCLOSED AS ANNEXURE-E AS BEING ILLEGAL, UNREASONABLE, ARBITRARY AND DISCRIMINATORY AND THEREFORE TO BE STRUCK DOWN AS VIOLATIVE OF ARTICLE 14, 19 AND 300A AND ETC.

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THIS PETITION COMING ON FOR ORDERS THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE M.I.ARUN

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3 - NC: 2024:KHC:49549 WP No. 2464 of 2024

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ORAL ORDER

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The petitioner is registered under the provisions of

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the Central Goods and Services Tax Act, 2017 and Karnataka Goods and Services Tax Act, 2017 (for short 'the CGST/KGST Acts'). There is a delay in filing of GST returns and claiming input tax for the financial year 20192020 by the petitioner. Hence the show cause notice was issued and the impugned order came to be passed. Aggrieved by the same, present writ petition is filed.

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During the course of arguments, learned counsel for petitioner submits that amendment has been effected to Finance Act, 2024 more particularly, Section 118, wherein, time for filing the GST returns and also claiming input tax credit has been extended and certain circulars have been issued by the State thereafter and the petitioner would be satisfied if the impugned order is set aside and the petitioner is given an opportunity to reply to show cause notice issued. It is further submitted that Co-Ordinate

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NC: 2024:KHC:49549 WP No. 2464 of 2024

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Bench of this Court in similar circumstances has passed orders accordingly.

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Learned High Court Government Pleader appearing

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for the State Government has no objection for the same.

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As similar matters have been remanded to the stage of show cause notice, I am of the opinion that it would be appropriate to pass a similar order for the instant writ petition also there is no reason why the orders passed in W.P.No.6138/2020 or W.P.No.29139/2024 should not

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enure to the benefit of the petitioner. Hence, the following:

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ORDER

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i) The writ petition is disposed of ;

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ii) The petitioner is relegated to the stage of show cause notice dated 21.09.2023 (Annexure-C) issued by respondent No.4 and the subsequent

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impugned order dated 21.09.2023 (Annexure-B) are hereby set aside;

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NC: 2024:KHC:49549 WP No. 2464 of 2024

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iii) The petitioner is granted one month from today to reply to show cause notice;

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iv) Respondents are directed to give effect to and implement the amended provisions contained in the Finance Act, 2014 and the CGST/KGST Acts and subsequent circulars that have been issued and consider the case of the petitioner in accordance with law and pass suitable orders within a period of two months thereafter.

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Sd/(M.I.ARUN) JUDGE

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PGG List No.: 2 Sl No.: 7

M/S Ambligola Project Private Limited v. Union of India

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M/S Ambligola Project Private Limited v. Union of India

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