M/S Karnataka State Road Vs Commissioner of Commercial Taxes

M/S KARNATAKA STATE ROAD TRANSPORT CORPORATION A GOVERNMENT OF KARNATAKA UNDERTAKING ESTABLISHED UNDER THE ROAD TRANSPORT CORPORATIONS ACT, 1950 SARIGE BHAVAN, K.H. ROAD SHANTHINAGAR, BENGALURU-560027 REPRESENTED BY ITS DEPUTY CHIEF ACCOUNTS OFFICER SRI. PRAKASH Y. KARAGUDARI AGED ABOUT 51 YEARS S/O SRI. YANKAPPA.

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…PETITIONER

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Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA

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(BY SRI. M. THIRUMALESH, ADVOCATE)

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AND:

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COMMISSIONER OF COMMERCIAL TAXES VANIJYA THEREIGE KARYALAYA 1^ST MAIN ROAD, GANDHI NAGAR BENGALURU - 560009.

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES - LGSTO-040 ROOM NO. 628, 6^TH FLOOR BMTC BUS DEPOT, KORAMANGALA BENGALURU - 560095.

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HC-KAR

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JOINT COMMISSIONER OF COMMERCIAL TAXES- (APPEALS)-8, 6^TH FLOOR BMTC BUS DEPOT, KORAMANGALA BENGALURU - 560095.

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AZAD COACH BUILDERS LTD. REGISTERED UNDER THE COMPANIES ACT, 1956 REPRESENTED BY ITS MANAGER TAXATION NEAR JORAWAR SINGH GATE AMER ROAD, JAIPUR - 302002.

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KMS COACH BUILDERS PVT. LTD. REGISTERED UNDER THE COMPANIES ACT, 1956 REPRESENTED BY ITS MANAGER TAXATION NO. 125/1B, NEAR BMTC DEPORT 12 INDUSTRIAL AREA, KENGERI MYSORE ROAD, BENGALURU - 560060.

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…RESPONDENTS

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(BY SMT. JYOTI M. MARADI, HCGP)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE EIGHT ORDERS DATED 29-01-2021 IN FORM-GST-RFD-06 PASSED BY THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-040 BENGALURU, THE SECOND RESPONDENT HEREIN, IN THE CASE OF THE PETITIONER BEARING NUMBER AND PERIODS AS MENTIONED IN THE BELOW, 1. JULY 2017 ARN NO.-AB2907175855388 ANNEXURE-H, 2. AUGUST 2017 ARN NO.- AA290817017766M ANNEXURE-H1, 3. SEPTEMBER 2017 ARN NO.- AA2909170360508 ANNEXURE-H2, 4. OCTOBER 2017 ARN NO.AA291017022522K ANNEXURE-H3, 5. NOVEMBER 2017 ARN NO.-AA2911170289870 ANNEXUREH4, 6. DECEMBER 2017 ARN NO.-AB2912171191482 ANNEXURES-H5, 7. JANUARY 2018 ARN NO.AA2901180382168 ANNEXURE-H6, 8. AUGUST 2018 ARN NO.AA2908180994957 ANNEXURE-H7 AND ETC.

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

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NC: 2025:KHC:52190 WP No. 36701 of 2025

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HC-KAR

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

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ORAL ORDER

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In this petition, the petitioner seeks for the following reliefs;

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"(i) Issue writ of certiorari or a declaration in the nature of writ of certiorari quashing the eight orders dated 29.01.2021 in Form-GST-RFD-06 passed by the Assistant Commissioner of Commercial Taxes, LGSTO-040 Bengaluru, the second respondent herein, in the case of the petitioner - bearing number and periods as mentioned in the below table:

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Sl. _No. _	Tax Period	ARN No.	Annexures
1.	July 2017	AB2907175855388	H
2.	August 2017	AA290817017766M	H-1
3.	September 2017	AA2909170360508	H-2
4.	October 2017	AA291017022522K	H-3
5.	November 2017	AA2911170289870	H-4
6.	December 2017	AB2912171191482	H-5
7.	January 2018	AA2901180382168	H-6
8.	August 2018	AA2908180994957	H-7

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"(ii) Issue writ of certiorari or a declaration in the nature of writ of certiorari quashing the Endorsement dated 11.06.2024 in No.ACCT/LGSTO-040/T-188/2024-25 issued by the Assistant Commissioner of Commercial Taxes,

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NC: 2025:KHC:52190 WP No. 36701 of 2025

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HC-KAR

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LGSTO-040 Bengaluru, the second respondent herein, in the case of the petitioner - Annexure-L;

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(iii) Issue a writ of certiorari or a declaration in the nature of writ or certiorari quashing the first appellate order dated 28.11.2024 in GST:AP:No.174/23-24 passed by the Joint Commissioner of Commercial Taxes (Appeals)-8, Bengaluru, the third respondent herein, in the case of the petitioner - Annexure-M;

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(iv) Issue a writ of certiorari or a declaration in the nature of writ of certiorari quashing the Endorsement order dated 20.05.2025 in No.JCCT(APLS)-8/R-14/2025-26 passed by the Joint Commissioner of Commercial Taxes (Appeals)-8, Bengaluru, the third respondent herein, in the case of the petitioner - Annexure-P;

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(v) Issue a Writ or such other Order in the nature of Writ of Mandamus directing the second respondent to refund the differential 10% of the GST amount paid by the petitioner for the contracts executed along with the interest as per the provisions; and

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(vi) 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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A perusal of the material on record would indicate that the

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refund applications filed by the petitioner came to be rejected by respondent No.2 vide Refund Rejection Orders dated 29.01.2021

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HC-KAR

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at Annexure-H series (Colly) in relation to various tax periods. The representations dated 18.03.2024 and 26.03.2024 by the petitioner culminated in endorsement at Annexure-L dated 11.06.2024 confirming the rejection of refund sought for by the petitioner. The said refund rejection orders were not communicated to the petitioner, who did not challenge the same by filing an appeal. However, being under the bonafide impression that the refund applications were still pending, the petitioner submitted representations at Annexures-J and K dated 18.03.2024 and 26.03.2024 to which respondent No.2 issued an endorsement dated 11.06.2024 for the first time intimating/communicating to the petitioner that the refund application had already been rejected.

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Immediately upon receiving the said endorsement under which the petitioner were communicated about the rejection of the refund application, the petitioner filed appeal before respondent No.3 - Appellate Authority, who proceeded to pass the impugned order at Annexure-M dated 28.11.2024 dismissing the appeal filed by the petitioner. Thereafter, the petitioner filed the Rectification Application at Annexure-N dated 24.02.2025, which also came to be dismissed by respondent No.3 vide impugned endorsement at

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NC: 2025:KHC:52190 WP No. 36701 of 2025

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HC-KAR

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Annexure-P dated 20.05.2025. Aggrieved by the impugned endorsements and orders, the petitioner is before this Court by way of the present petition.

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A perusal of the refund rejection orders at Annexure-H series dated 29.01.2021 (Colly), impugned endorsement at Annexure-L dated 11.06.2024, impugned order at Annexure-M dated 28.11.2024 as well as the impugned endorsement at Annexure-P dated 20.05.2025 would clearly indicate that respondent Nos.2 and 3 have committed a grave and serious error of law and fact in rejecting the refund claim of the petitioner on the ground that necessary documents had not been produced by the petitioner, which is contrary to the refund application at Annexure-F dated 04.09.2019 submitted by the petitioner, who had submitted all documents along with the said refund application.

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Under these circumstances, the impugned orders and endorsements rejecting the refund claim of the petitioner deserve to be set aside and the matter remitted back to respondent No.2 for reconsideration of the refund claim of the petitioner afresh in accordance with law.

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NC: 2025:KHC:52190 WP No. 36701 of 2025

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HC-KAR

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In the result, I pass the following;

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ORDER

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(i) The Writ Petition is allowed.

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(ii) The impugned orders at Annexure-H (Colly) series dated 29.01.2021, the impugned endorsement dated 11.06.2024 at Annexure-L, the impugned order dated 28.11.2024 at Annexure-M and the impugned endorsement dated 20.05.2025 at Annexure-P are hereby set-aside.

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(iii) The matter is remitted back to respondent No.2 for reconsideration of the refund claim of the petitioner together with applicable interest in accordance with law bearing in mind the refund sanction order passed in relation to the North Western Karnataka Road Transport Corporation (NWKRTC) dated 17.08.2022.

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SD/(S.R.KRISHNA KUMAR) JUDGE

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NBM

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List No.: 2 Sl No.: 13

M/S Karnataka State Road v. Commissioner of Commercial Taxes

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M/S Karnataka State Road v. Commissioner of Commercial Taxes

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