M/S Toyota Techno Park India Pvt. Ltd. Vs Joint Commissioner of Central Tax

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NC: 2025:KHC:14433 WP No. 9957 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3^RD DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.9957 OF 2024 (T-RES)

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BETWEEN:

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M/S TOYOTA TECHNO PARK INDIA PVT. LTD., PLOT NO.20, BIDADI INDUSTRIAL AREA, BIDADI, RAMANAGARA, BANGALORE – 562 109. (REPRESENTED BY SHRI. M.A. KRISHNA KUMAR, VICE PRESIDENT) REGISTRATION NO.29AAACT7456JIZU DATED 29.04.2018

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…PETITIONER

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(BY SRI. RAVI RAGHAVAN A/W SRI. ROHAN KARIA & SMT. AYUSHREE JHAWAR, ADVOCATES)

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AND:

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Digitally signed by CHANDANA B M Location: High Court of Karnataka

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JOINT COMMISSIONER OF CENTRAL TAX, BENGALURU WEST COMMISSIONERATE, 1^ST FLOOR, BMTC BUILDING, BANASHANKARI, BENGALURU – 560 070.

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(BY SRI. JEEVAN J. NEERALGI, ADVOCATE)

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…RESPONDENT

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER NO.F.NO.GEXCOM/ADJN/GST/835/2023-ADKN-O/0 AND ORDER-IN-ORIGINAL NO.117/2023-24 6105/2023 DATED 30.12.2023 PASSED BY THE RESPONDENT ENCLOSED AT ANNEXURE-A AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP , THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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

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NC: 2025:KHC:14433 WP No. 9957 of 2024

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ORAL ORDER

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In this petition, petitioner seeks the following reliefs:

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“a) Issue a writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ or order or direction under Article 226 of the Constitution of India quashing the impugned order No. F. No GEXCOM/ADJN/GST/835/2023ADKN-O/o and Order-In-Original No.117/2023-24 6105/2023 dated 30.12.2023 passed by the Respondent enclosed at Annexure-A;

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b) Hold that the Petitioner has rightly availed input tax credit of Rs.1,29,33,922/- in respect of the Integrated Tax paid under reverse charge mechanism on the manpower supply services received by the Petitioner during the period July 2017 to March 2021 vide Annexure-A;

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c) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require.”

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Heard learned counsel for the petitioner and learned

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counsel for the respondent and perused the material on record.

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In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned Order at Annexure – A dated 30.12.2023 issued by the respondent

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in order to point out that denial of Input Tax Credit in favour of the petitioner for the period from July 2017 – March 2021 is illegal and

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3 - NC: 2025:KHC:14433 WP No. 9957 of 2024

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arbitrary in the light of the Circular No.211/5/2024-GST dated 26.06.2024, which has been relied upon by this Court in M/s.Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024 . It is therefore submitted that the impugned Order at Annexure – A deserves to be quashed to the extent of denial of Input Tax Credit in favour of the petitioner and the matter remitted back to the respondent for reconsideration afresh, in accordance with law.

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It is also submitted that the valuation for the purpose of payment of taxes plus interest is covered by Circular No.210/4/2024-GST dated 26.06.2024 and the decision of the Delhi High Court in the case of Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court. It is therefore submitted that the petition may be allowed and disposed of accordingly.

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It is further submitted that though the respondent purportedly invoked Section 74(1) of the CGST / KGST Act for the purpose of initiating proceedings, the same may be treated / construed as proceedings under Section 73 of the CGST / KGST

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4 - NC: 2025:KHC:14433 WP No. 9957 of 2024

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Act so as to enable the petitioner to avail the benefit of Amnesty scheme under Section 128A of the CGST Act.

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Per contra, learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed.

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A perusal of the material on record will indicate that

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insofar as challenge to the impugned Notice at Annexure – A coupled with the contention that the petitioner would be entitled to avail Input Tax Credit under Section 16(4) of the CGST / KGST Act is concerned, in the light of the aforesaid judgment of this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd.’ case supra , petitioner is to be relegated back to the respondent for consideration of its claim in accordance with law in the light of the said decision and the Circular No.211/5/2024-GST dated 26.06.2024.

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Insofar as the valuation regarding payment of tax and interests are concerned, in view of Circular No.210/4/2024-GST dated 26.06.2024 even this issue would necessarily have to be decided by the respondent in accordance with law and the decision of Delhi High Court in Thales India Private Limited Vs.

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NC: 2025:KHC:14433 WP No. 9957 of 2024

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Additional Commissioner of CGST, Audit – II, Delhi & Another

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– 2025 (2) TMI 245 – Delhi High Court .

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In the result, I pass the following:

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ORDER

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(i) The petition is hereby allowed .

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(ii) The impugned Order at Annexure – A dated 30.12.2023 issued by the respondent is hereby quashed.

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(iii) Petitioner is relegated to the stage of filing reply

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to the Show Cause Notice at Annexure – S dated 27.09.2023 before the respondent.

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(iv) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before the respondent, who shall consider the same and pass appropriate orders in accordance with law bearing in mind the judgment of this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024; thedecision of Delhi High Court in Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another –

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NC: 2025:KHC:14433 WP No. 9957 of 2024

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2025 (2) TMI 245 – Delhi High Court ; Circular No.211/5/2024-GST dated 26.06.2024 and Circular

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No.210/4/2024-GST dated 26.06.2024.

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(v) All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same.

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(vi) Liberty is reserved in favour of the petitioner to seek the benefit of Amnesty scheme before the respondent by converting the proceedings from Section 74 to Section 73 for the purpose of availing Amnesty scheme under Section 128A of the CGST Act. If such a request for availing Amnesty Scheme is made by the petitioner, the respondent shall consider the same and proceed further in accordance with

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law.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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SV

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List No.: 2 Sl No.: 0

M/S Toyota Techno Park India Pvt. Ltd. v. Joint Commissioner of Central Tax

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M/S Toyota Techno Park India Pvt. Ltd. v. Joint Commissioner of Central Tax

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