Disposed

M/S Bowring Service Station v. the Deputy Commissioner of Commercial Taxes (AUDIT)1.4

Karnataka HC29 Oct 2024WP/29022/2024

Case brief

AI extract

What is this about?

A single show cause notice and a single adjudication order under Section 73 of the KGST/CGST Acts cannot cover multiple assessment years; each assessment year constitutes a separate cause of action requiring separate proceedings. A combined notice for assessment years 2019 to 2023 and one common order were held bad in law and set aside, with liberty to initiate fresh action subject to limitation.

What did the court decide?

Show cause notice dated 29.05.2024, adjudication order dated 16.08.2024 and its summary were set aside; liberty given to initiate fresh action subject to limitation.

M/S Bowring Service Station Vs the Deputy… — GST and Indirect Tax | Karnataka HC (2024)

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NC: 2024:KHC:43731 WP No. 29022 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29^TH DAY OF OCTOBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO.29022 OF 2024 (T-RES)

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BETWEEN:

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M/S. BOWRING SERVICE STATION

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A PARTNERSHIP FIRM CREATED UNDER THE PROVISIONS OF THE INDIAN

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PARTNERSHIP ACT, 1932

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HAVING ITS OFFICE AT 37/2, BOWRING INSTITUTE COMPOUND ST. MARKS ROAD BENGALURU-560 001

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Digitally signed by CHAITHANYA K Location: High Court of Karnataka

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REPRESENTED HEREIN BY ITS ACCOUNTING MANAGER/AUTHORISED REPRESENTATIVE MR. SURESH B.

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(BY SRI SANDEEP HUILGOL, ADVOCATE)

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…PETITIONER

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AND:

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THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)1.4 BANGALORE, 3RD FLOOR TTMC/BMTC BUILDING YESHWANTHPUR BENGALURU-560 022.

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NC: 2024:KHC:43731 WP No. 29022 of 2024

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT-27) SOUTH ZONE, BANGALORE VTK-II BUILDING, RAJENDRANAGAR KORAMANGALA

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BENGALURU-560 047.

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THE ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES, (ENFORCEMENT) SOUTH ZONE, BANGALORE VTK-II BUILDING, RAJENDRANAGAR KORAMANGALA BANGALORE-560 047.

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…RESPONDENTS

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(BY SMT. JYOTHI M. MARADI, HCGP.)

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THIS PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ADJUDICATION ORDER DATED 16.08.2024 BEARING NO.DCCT(A)-1.4/GST(ADJ)/39, 43 TO 45/2024-25/T. NO.220/24-25 PASSED BY THE RESPONDENT NO.1 UNDER SECTION 73 OF THE KARNATAKA GOODS AND SERVIES TAX ACT, 2017 READ WITH THE CENTRAL GOODS AND SERVICES TAX ACT, 2017, FOR THE TAX PERIODS APRIL 2019 TO MARCH 2023 (ANNEXURE 'A-1'), ETC.

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THIS PETITION COMING ON FOR PRELIMINARY HEARING, 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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ORAL ORDER

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Proceedings have been initiated against the petitioner

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under the provisions of Karnataka Goods and Services Tax Act,

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3 - NC: 2024:KHC:43731 WP No. 29022 of 2024

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2017 / Central Goods and Services Tax Act, 2017 (for short 'KGST & CGST Acts', 2017) for the assessment years 2019 to 2023 by issuing a single show cause notice dated 29.05.2024. Thereafter, the matter has been adjudicated under Section 73(9) of the 'KGST & CGST Acts', 2017 and a common order has been passed. The same is challenged in the instant writ petition.

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Time and again, Courts have held that separate proceedings have to be initiated in respect of each assessment year, as each assessment year constitute a separate cause of action. Respondent No.2 issuing a single notice for the assessment years 2019 to 2023 and thereafter, respondent No.1 passing single order with regard to all the assessment years will have to be held bad in law. Hence, the following:

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ORDER

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i. The impugned show cause notice dated 29.05.2024 bearing No.ADCOM/ENF/SZ/ACCT27/DRC1/2023-24 issued by respondent No.2 vide Annexure-'E' is hereby set aside.

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ii. The impugned adjudication order dated 16.08.2024 bearing No.DCCT(A)-1.4/GST(Adj)-39,43

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NC: 2024:KHC:43731 WP No. 29022 of 2024

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to 45/2024-25 passed by respondent No.1 vide Annexure - 'A1' to the writ petition is hereby set aside.

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iii. The summary of the order dated 16.08.2024 bearing No.DCCT(A)-1.4/GST(Adj)-39,43 to 45/202425/T.No.220/24-25 issued by respondent No.1 vide Annexure-'A2' to the writ petition is hereby set aside.

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iv. Respondents are given liberty to initiate fresh action against the petitioner on the same cause of action in accordance with law and if permitted subject to the law of limitation.

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v. The writ petition is disposed of .

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vi. All pending interlocutory applications, if any, stand disposed of.

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SD/(M.I.ARUN) JUDGE

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VMB

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List No.: 1 Sl No.: 23

M/S Bowring Service Station v. the Deputy Commissioner of Commercial Taxes (AUDIT)1.4

Case brief

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M/S Bowring Service Station v. the Deputy Commissioner of Commercial Taxes (AUDIT)1.4

Case brief

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