Allowed

Rohini Aircon Pvt. Ltd. v. The Superintendent of Cgst

Madras HC2 Jan 2020WP/34380/2017

Case brief

AI extract

What is this about?

In a writ petition, the Hon'ble Court quashed an impugned notice issued to petitioner Rohini Aircon Pvt Ltd demanding payment of arrears in respect of two other companies (Rohini Fabricators Ltd and Rohini Coil Industries). The Court held that mere ownership of the Managing Directors of the defaulting companies by the petitioner's shareholders does not justify recovery proceedings against the peti

What did the court decide?

Quashing of the impugned notice calling for payment of arrears for other companies; Liberty granted to respondent to initiate proceedings against actual defaulters.

Rohini Aircon Pvt. Ltd. Vs The Superintendent of Cgst — GST and Indirect Tax | Madras HC (2020)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 02.01.2020

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CORAM

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THE HONOURABLE MR. JUSTICE C.SARAVANAN

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Writ Petition No.34380 of 2017 and WMP.No.38221 of 2017

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Rohini Aircon Private Limited, Rep. by its Director, Sandhya Ramakrishnan, 2/1, Selakaracal, Sulur, Coimbatore – 641 658 ... Petitioner Vs.

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The Superintendent of CGST and Central Excise, Coimbatore – IV D Range, 4/3B, Karuppanna Brothers Layout, Saraswathy Nagar, Kalangal Road, Sulur, Coimbatore – 641 402. ... Respondent

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Prayer: Writ petition is filed under Article 226 of the Constitution of India to issue Writ of Certiorari calling the entire records connected with the letters O.C. No.373/2017 dated 07.08.2017, O.C.No.444 of 2017 dated 13.09.2017, O.C.No.450/2017 dated 19.09.2017 & O.C.No.620 of 2017 dated 23.11.2017 issued by the respondent and quash the same.

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For Petitioner : Mr.J.V.Niranjan

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The petitioner has challenged the impugned notice calling upon the petitioner to pay arrears for the dues in respect of the following companies.

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https://hcservices.ecourts.gov.in/hcservices/

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SI.No .	Party/person & address	Amount confirmed Duty / Penalty confirmed / imposed
1 2	M/s.Rohini Fabricators Ltd, C-1-B, 1307/1, GIDC, Phase-IV, Naroda, Ahmedabad. M/s.Rohini Coil Industries, C-1-B, 1307/1, GIDC, Phase-IV, Naroda, Ahmedabad	Rs.37,66,911/- + Interest Rs.38,048/- Rs.37,50,000/- Rs.3,00,000/- Duty + Interest Penalty under Section 11AC / Rule 173Q Penalty under Rule 173Q & Rule 226 Redemption Fine Rs.11,91,314/- + Interest Rs.22,251/- Rs.11,00,000/- Rs.1,00,000/- Duty + Interest Penalty under Section 11AC / Rule 173Q Penalty under Rule 173Q & Rule 226 Redemption Fine
3	Mr.M.B.Chandran, Managing Director of M/s.Rohini Fabricators Ltd.,	Rs.2,00,000/- Penalty under erstwhile Rule 209-A of CER.
	Mr.M.B.Chandran, Managing Director of M/s.Rohini Coil Industries	Rs.60,000/- Penalty under erstwhile Rule 209-A of CER.

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In the above companies, Managing Director is the shareholder in the petitioner's company and therefore the recovery proceedings have been issued to the petitioner.

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I do not find any merits in the impugned notice calling upon the petitioner to pay the arrears of dues in respect of the above two companies and the Director, merely because, the Managing Director of the above two companies is also the shareholder of the petitioner's company.

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Under these circumstances, this impugned notice is quashed while giving liberty to the respondent to initiate appropriate proceedings to recover the dues from the above two companies and its Managing Director in accordance with law.

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https://hcservices.ecourts.gov.in/hcservices/

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With these observations, the above Writ Petition is
allowed. No costs.
Sd/-
Assistant Registrar (JJ Act)
//True Copy//
Sub Assistant Registrar
drl
To
The Superintendent of CGST and
Central Excise,
Coimbatore – IV D Range,
4/3B, Karuppanna Brothers Layout,
Saraswathy Nagar, Kalangal Road,
Sulur, Coimbatore – 641 402.
+1cc to Mr.Niranjan & Associates, Advocate, S.R.No.473
+1cc to Mr.A.P.Srinivas, Advocate, S.R.No. 171
W.P.No.34380 of 2017
and
WMP.No.38221 of 2017
SR(CO)
GN(21/02/2020)

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https://hcservices.ecourts.gov.in/hcservices/

Rohini Aircon Pvt. Ltd. v. The Superintendent of Cgst

Case brief

What is this about?

What did the court decide?

Rohini Aircon Pvt. Ltd. v. The Superintendent of Cgst

Case brief

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What did the court decide?

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