Disposed

M/S Enternity Structures Pvt. Ltd. v. the Deputy Commissioner of Commercial Taxes (AUDIT)-3.2

Karnataka HC14 Nov 2024WP/30285/2024

Case brief

AI extract

What is this about?

The High Court set aside the cancellation of GST registration and directed the tax authority to restore registration and provide a hearing for the petitioner to reply to the show cause notice, subject to payment of cost.

What did the court decide?

Impugned orders set aside; GST registration restored; petitioner directed to reply to show cause notice within two weeks subject to cost of Rs. 25,000.

M/S Enternity Structures Pvt. Ltd… — Constitutional and Fundamental Rights | Karnataka HC (2024)

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1 - NC: 2024:KHC:46202 WP No. 30285 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14^TH DAY OF NOVEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 30285 OF 2024 (T-RES)

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BETWEEN:

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M/S ETERNITY STRUCTURES PVT LTD., A COMPANY INCORPORATED UNDER THE INDIAN COMPANIES ACT 1956 HAVING OFFICE AT NO.75/757, VASAVI, I FLOOR, 10^TH MAIN, 4^TH BLOCK, JAYANAGAR, BANGALORE 560 011. REP. BY ITS MANAGING DIRECTOR SRI. K. VIJAYA PRASAD REDDY, S/O SRI. VEERA REDDY, AGED ABOUT 47 YEARS.

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…PETITIONER

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(BY SMT. VANI H., ADVOCATE)

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AND:

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Digitally signed by CHAITHANYA K Location: High Court of Karnataka

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THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3.2, ROOM NO. 217, II FLOOR, BMTC BUILDING, SHANTINAGAR, DGSTO-03, BANGALORE - 560 027.

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THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE -560 001.

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…RESPONDENTS

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(BY SMT. JYOTI M.MARADI, HCGP)

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THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER CANCELLING THE REGISTRATION BEARING

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NC: 2024:KHC:46202 WP No. 30285 of 2024

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REFERENCE NO. ZA29111903512R DTD. 29.10.2019 PASSED BY THE RESPONDENT AUTHORITY VIDE ANNEXURE-A AND 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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On the ground that the petitioner has claimed excess input tax credit and also on the ground returns have not been filed, a show cause notice dated 21.09.2023 (vide Annexure-B to the writ petition) was issued by respondent No.1 to the petitioner. The same has been served to the petitioner by way of e-mail. Inspite of it, the petitioner did not reply. Consequently, the GST registration of the petitioner has been cancelled and the impugned order dated 22.11.2023 (vide Annexure-C to the writ petition) and summary of the order dated 23.11.2023 (vide Annexure-C1 to the writ petition) have been passed by respondent No.1. Aggrieved by the same, present writ petition is filed.

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3 - NC: 2024:KHC:46202 WP No. 30285 of 2024

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The case of the petitioner is that the impugned orders have been passed without hearing the petitioner and in violation of principles of natural justice and if an opportunity is given, petitioner would show that orders passed are erroneous and it has not committed any mistake. The petitioner further submits that if after hearing the petitioner if any adverse order would be passed and if there is any shortcoming, petitioner is willing to oblige the same.

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Admittedly, notices have been sent to the registered e-mail of the petitioner. It is the responsibility of the petitioner to keep the registered e-mail with GST authorities in working condition. No fault can be found with the respondents in the instant case. However, in the given peculiar facts and circumstances of the case, this Court is of the opinion interest of justice would be met, if the petitioner is given an opportunity of hearing by setting aside the impugned order, subject to petitioner paying a cost. Hence, the following:

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4 - NC: 2024:KHC:46202 WP No. 30285 of 2024

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ORDER

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i) The impugned order dated 29.10.2019

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bearing reference No.ZA291119035132R (vide Annexure-A to the writ petition) is hereby set aside;

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ii) Respondent No.1 is directed to restore the GST registration of the petitioner;

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iii) The impugned order dated 22.11.2023 passed by respondent No.1 (vide annexure-C to the writ petition) and the impugned summary of the order dated 23.11.2023 (vide AnnexureC1 to the writ petition) passed by respondent No.1 are hereby set aside;

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iv) The petitioner is relegated to the stage of show cause notice dated 21.09.2023 (vide Annexure-B to the writ petition) and

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petitioner shall reply to show cause notice within a period of two weeks from today and appear before respondent No.1 on

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5 - NC: 2024:KHC:46202 WP No. 30285 of 2024

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12.12.2024 at 2.30 p.m. without further

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notice;

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v) The petitioner shall pay a cost of 25,000/(Rupees twenty five thousand only) to the Registrar General, High Court of Karnataka, Bengaluru, within a period of two weeks from today;

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vi) Accordingly, the writ petition is disposed of .

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SD/(M.I.ARUN) JUDGE

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PGG List No.: 1 Sl No.: 9

M/S Enternity Structures Pvt. Ltd. v. the Deputy Commissioner of Commercial Taxes (AUDIT)-3.2

Case brief

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M/S Enternity Structures Pvt. Ltd. v. the Deputy Commissioner of Commercial Taxes (AUDIT)-3.2

Case brief

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What did the court decide?

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