M/S Urban Gear Gifts LLP Vs Commissioner of Commercial Taxes

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NC: 2025:KHC:26430 WP No. 17685 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16^TH DAY OF JULY, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 17685 OF 2025 (T-RES)

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BETWEEN:

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M/S URBAN GEAR GIFTS LLP A LLP REGISTERED UNDER THE LIMITED LIABILITY PARTNERSHIP ACT, 2008, NO. 15. 1^ST 2^ND 3^RD AND 4^TH FLOOR, 9^TH CROSS, H. SIDDALAH ROAD, BBMP WARD NO. 48, BENGALURU - 560 027, REPRESENTED BY ITS PARTNER, SRI.SANJAY MOHAN BATHIJA AGED ABOUT 49 YEARS, S/O SRI. MOHANDAS CHETANDAS BATHIJA.

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…PETITIONER

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(BY SRI. THIRUMALESH.M, ADVOCATE)

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AND:

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Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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COMMISSIONER OF COMMERCIAL TAXES KARNATAKA VANIJYA THERIGE KARYALAYA, GANDHINAGAR, BENGALURU - 560 009.

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES. LGSTO-016, 6^TH FLOOR, TTMC BUILDING 80 FEET ROAD, DGSTO-4, KORAMANGALA, BENGALURU – 560 095.

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES. LGSTO-111,DGSTO-3, 1^ST FLOOR, BMTC BUS STAND, 4^TH BLOCK,

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NC: 2025:KHC:26430 WP No. 17685 of 2025

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HC-KAR

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JAYANAGAR, BENGALURU - 560 011.

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…RESPONDENTS

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(BY SRI. K.HEMA KUMAR AGA FOR R1 TO R3)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR A DECLARATION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE ADJUDICATION ORDER DATED 18-07-2024 PASSED BY THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-016, BENGALURU, THE SECOND RESPONDENT HEREIN, IN NO. ACCT/LGSTO-16/DRC-07/202425, UNDER SECTIONS 73(10), 73(9), 50 AND 122 OF THE KGST ACT, 2017 AND CGST ACT, 2017 FOR THE TAX PERIODS APRIL 2019 TO MARCH 2020, IN THE CASE OF THE PETITIONER - ANNEXURE – C.

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

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CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

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ORAL ORDER

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The petitioner is before this Court seeking for the following reliefs:

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I. “issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Adjudication Order dated 18-07-2024 passed by the Assistant Commissioner of Commercial Taxes, LGSTO-016, Bengaluru, the second respondent herein, in No. ACCT/LGSTO-16/DRC-07/2024-25, under sections 73(10), 73(9), 50 & 122 of the KGST Act, 2017 and CGST Act, 2017 for the tax periods April 2019 to March 2020, in the case of the petitioner - ANNEXURE - C;

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II. issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the summary of Order under section 73(9) in Form GST DRC-07 dated 22-08-2024 passed by the Assistant

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HC-KAR

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Commissioner of Commercial Taxes, LGSTO-111, Bengaluru, the third respondent herein, in No. ZD290824082345Z under sections 73(10), 73(9), 50 & 122 of the KGST Act, 2017 and CGST Act, 2017 for the tax periods April 2019 to March 2020, in the case of the petitioner - ANNEXURE - D;

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III. and grant such other relief or reliefs as this Hon'ble Court may deem fit in the circumstances of the case, in the interest of justice.”

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The petitioner is engaged in the business of trading and corporate gifts. The petitioner had received certain supplies from M/s. Scope Amra Enterprises LLP. However, the said supplier though had filed GSTR-01 for the financial year 2019-2020 had not disclosed the transactions with the petitioner.

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The said Scope Amra had disclosed the transaction with the petitioner in GSTR-3B and also discharged tax liability, but however, the disclosure was not made in GSTR-01. This aspect has been taken into consideration in Form DRC-05 issued by the Assistant Commissioner of Commercial Taxes, Audit -5.5, in respect of the proceedings taken up as regards M/s.Scope Amra Enterprises.

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NC: 2025:KHC:26430 WP No. 17685 of 2025

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HC-KAR

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On that basis, Sri.M.Thirumalesh, learned counsel for the petitioner, submits that the tax liability has been discharged by Scope Amara in respect of the transaction with the petitioner. It is only on account of the nondisclosure of GSTR-01 that the petitioner could not avail of the GST benefit. These documents could not be placed before the adjudication Officer, i.e., Respondent No.2, when it was taken up, since these documents came to the knowledge of the petitioner subsequently.

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It is on that basis that he submits that if the matter is remitted to Respondent Nos. 2 and 3 for fresh consideration, the necessary documents would be placed on record.

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He also relies upon the decision of a Co-ordinate Bench of this Court in the case of M/S.WIPRO LIMITED INDIA

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COMPANY VS. THE ASSISTANT COMMISSIONER OF CENTRAL TAXES AND OTHERS,¹ for the purpose of extending the benefit of the Circular No.183/15/2022 to the petitioner for the year 2019-2020.

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1 WP.NO.16175/2022 DD 06.01.2023.

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HC-KAR

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Sri Hema Kumar, learned AGA would submit that if at all these documents had been furnished at that time Respondent No.2 and Respondent No.3 would have considered it. Now that orders have been passed by Respondent no. 2 and Respondent no. 3, the question of consideration of those documents would not arise.

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Heard Sri Thirumalesh M., learned counsel for the petitioner and Sri Hema Kumar, learned AGA for Respondent Nos . 1 to 3 and perused papers.

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It is not in dispute that there is a transaction between petitioner and M/s. Scope Amra Enterprises LLP. The said Scope Amra is supplying certain goods to the petitioner, for which the GST liability had to be discharged by Scope Amra. It is on account of the alleged mistake on the part of Scope Amra in not disclosing the transaction in GST-01 that the petitioner could not claim the benefit thereof.

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The petitioner could not place the documents as regards the orders passed in respect of Scope Amra at the time when the matter was taken for consideration by Respondent Nos.2 and 3. Now, a memo has been filed

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HC-KAR

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placing all those documents on record, it would be required for these documents to be examined by Respondent Nos.2 and 3 to ascertain, if the liability has been discharged by Scope Amra and the petitioner was entitled for the benefit claimed by the petitioner as held by the Coordinated Bench of this Court in the order dated 06.01.2023 in W.P.No.16175/2022, the benefit of Circular No.183/15/2022-GST has been extended even to subsequent years than that which has been provided in the said circular. The said benefit, needless to say, would also enure to the benefit of the petitioner.

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In the above background, I pass the following

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ORDER

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a) The writ petition is allowed.

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b) The adjudication order dated 18.07.2024 passed by Respondent No.2 at Annexure-C and the order dated 22.08.2024 passed by Respondent No.3 at Annexure-D, are hereby set aside.

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c) The matter is remitted to Respondent Nos.2 and 3 for fresh consideration in terms of the observations made hereinabove by considering the orders passed with reference to M/s.Scope Amra Enterprises LLP, which

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