Arc Associates Vs the Assistant Commissioner — Writ and Judicial Review | Karnataka HC (2025)

Arc Associates Vs the Assistant Commissioner — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Quashing of the impugned Order-in-Original at Annexure-H dated 30.03.2022 (Order No.88/2021-22) and a direction to the respondents to lift the attachment on the petitioner's bank account No. 1208870631 with Central Bank of India, Kamalanagar Branch, Bengaluru, immediately upon receipt of a copy of the order.

Issue for consideration

Whether the impugned Order-in-Original dated 30.03.2022 (Annexure-H, Order No.88/2021-22) for the period April 2015 to June 2017 is liable to be quashed. +1 more

Court's answer

The petition is allowed and the impugned Order-in-Original at Annexure-H dated 30.03.2022 is quashed.

Ratio / Principle

The present petition is liable to be, and is, disposed of in terms of the order dated 03.07.2024 passed by the Co-ordinate Bench of this Court in W.P.No.11154/2023 and connected matters (M/s. Karnataka Chinmaya Seva Trust), the controversy being directly and squarely covered by that judgment.

Key takeaways

The respondents are directed to lift the attachment placed on the petitioner's bank account No. 1208870631 maintained with Central Bank of India, Kamalanagar Branch, Bengaluru, made pursuant to the garnishee notice dated 21.02.2025, immediately upon receipt of a copy of the order.ratio¶57

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution of India filed by ARC Associates, a Bengaluru proprietary concern represented by its proprietor Madhava Bhandari, seeking (i) quashing of the Order-in-Original No.88/2021-22 dated 30.03.2022 (Annexure-H, DIN 20220357YU0000000DCC) passed by the Assistant Commissioner of Central Tax, Division-3 for the period April 2015 to June 2017, and (ii) lifting of the attachment on its bank account No. 1208870631 with Central Bank of India, Kamalanagar Branch, Bengaluru, effected through a garnishee notice dated 21.02.2025 (Annexure-M) for recovery of outstanding penalty. Holding that the controversy was directly and squarely covered by the Co-ordinate Bench order dated 03.07.2024 in M/s. Karnataka Chinmaya Seva Trust v. Joint Commissioner of Central Tax (W.P.No.11154/2023 and connected matters), the Court (S.R. Krishna Kumar, J.) allowed the petition, quashed the impugned Order-in-Original, and directed the respondents to lift the bank-account attachment immediately upon receipt of a copy of the order.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 8^TH DAY OF APRIL, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.10164 OF 2025 (T-RES)

BETWEEN:

ARC ASSOCIATES NO. 592, 23^RD CROSS, 3^RD MAIN, HESARGHATTA MAIN ROAD, KIRLOSKAR EMPLOYEES CHS LAYOUT, SIDEDAHALLI, BENGALURU - 560 073.

Digitally signed by SHARMA ANAND CHAYA Location: HIGH COURT OF KARNATAKA

A PROPRIETERSHIP CONCERN REPRESENTED BY ITS PROPRIETOR MADHAVA BHANDARI AGE ABOUT 67 YEARS OCC: BUSINESS RESIDING AT NO.592, 23^RD CROSS, 3^RD MAIN, HESARGHATTA MAIN ROAD, KIRLOSKAR EMPLOYEES CHS LAYOUT, SIDEDAHALLI, BENGALURU - 560 073.

…PETITIONER

(BY SRI. K.R. VASUDEVAN., ADVOCATE)

AND:

THE ASSISTANT COMMISSIONER OF CENTRAL TAX DIVISION-3, TTMC COMPLEX, BMTC BUS STAND, BANASHANKARI 2^ND STAGE, BENGALURU - 560 070.

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THE SUPERINTENDENT OF CENTRAL TAX, RANGE-C, WEST DIVISION-3, 1^ST FLOOR, BMTC BUS STAND, BANASHANKARI 2^ND STAGE, BENGALURU - 560 070.

THE PRINCIPAL COMMISSIONER OF CENTRAL TAX, (REVIEW SECTION), GST WEST COMMISSIONERATE, TTMC COMPLEX, BMTC BUS STAND, BANASHANKARI 2^ND STAGE, BENGALURU - 560 070.

…RESPONDENTS

(BY SRI. ARAVIND V CHAVAN, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE FOLLOWING ANNEXURE-H IMPUGNED ORDER-IN-ORIGINAL PASSED BY THE RESPONDENT NO.1 ON 30.03.2022 FOR THE PERIOD APRIL 2015 TO JUNE 2017 IN ORDER NO.88/2021-22 AND DIN 20220357YU0000000DCC; DIRECTION TO THE RESPONDENTS TO LIFT THE ATTACHMENT PLACED ON THE BANK ACCOUNT NO. 1208870631 OF THE PETITIONER MAINTAINED WITH CENTRAL BANK OF INDIA, KAMALANAGAR BRANCH, BENGALURU FOR RECOVERY OF THE OUTSTANDING PENALTY PAYABLE IN PURSUANCE TO GARNISHEE NOTICE DATED 21.02.2025 ISSUED BY RESPONDENT NO.1 TO PETITIONERS BANK VIDE ANNEXURE-M.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:

“ i. Issue a writ of certiorari or any other writ as the Hon’ble Court may deem fit and quash the following:-

ANNEXURE-H

Impugned Order-In-Original passed by the Respondent No.1 on 30.03.2022 for the period April 2015 to June 2017 in Order No.88/202122 and DIN:20220357YU0000000DCC

ii. To issue the writ of mandamus or any other appropriate writ in the nature of mandamus writ, order or direction to the Respondent to lift the attachment placed on the bank account No. 1208870631 of the Petitioner maintained with Central Bank of India, Kamalanagar Branch, Bengaluru for recovery of the outstanding penalty payable in pursuance to garnishee notice dated 21.02.2025 issued by Respondent No.1 to Petitioner’s bank vide Annexure-M;

iii. To issue any other order(s), direction(s), writ(s) or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and

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circumstances of the case and in the interest of justice;

iv. For the cost of the present petition.”

Heard learned counsel for the petitioner and

learned counsel for the respondents and perused the material on record.

Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in the case of M/s.Karnataka Chinmaya Seva

Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated

03.07.2024, wherein it was held as under;

"13. Accordingly, the following:

ORDER

In light of observations made above, the writ petitions relating to challenge to show-cause notice, such matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same

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stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-cause notice are disposed off.

Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. Accordingly, such of the petitions at Sl.No.1 to 35 in Column No.2 of the table relating to challenge to Orders-in-Original are disposed off.

The petitioners who are now relegated before the authorities concerned are at liberty to file their pleadings within a reasonable time as may be fixed by the Officers concerned. Wherever the matters are pending in appeal in light of the arrangement that is made, petitioners to file a memo for withdrawal of appeal and accordingly, the ordersin-original in question would also receive the same treatment, i.e. be set aside as per the directions made above. Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside."

4. Under these circumstances, the present petition

is also liable to be disposed of in terms of the aforesaid

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Order dated 03.07.2024 passed by this Court in W.P.No.11154/2023 and connected matters.

5. Accordingly, the following:

ORDER

(i) The petition is allowed.

(ii) The impugned Order-in-original at Annexure – H dated 30.03.2022 is hereby quashed.

(iii) Respondents are hereby directed to lift the attachment placed on the bank account No. 1208870631 of the petitioner maintained with Central Bank of India, Kamalanagar Branch, Bengaluru for recovery of the outstanding penalty payable in pursuance to garnishee notice dated 21.02.2025 issued by Respondent No.1 to Petitioner’s bank vide Annexure-M, immediately upon receipt of copy of this order.

SD/(S.R.KRISHNA KUMAR) JUDGE

sac

List No.: 1 Sl No.: 78