IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF AUGUST, 2019 BEFORE THE HON’BLE MR. JUSTICE P.B.BAJANTHRI WRIT PETITION NO. 27339/2019 (T-RES) BETWEEN:
M/S KRITA ENGINEERING PVT. LTD., 430/431, 12TH CROSS, 4TH PHASE, PEENYA INDUSTRIAL ESTATE, BANGALORE - 560 058, KARNATAKA. (REPRESENTED BY SHRI MAINAK BISWAS GENERAL MANAGER-FINANCE) ... PETITIONER (BY SRI R. DAKSHINA MURTHY AND SRI K.S. NAVEEN KUMAR, ADVOCATES) AND:
1. THE UNION OF INDIA, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110 001, (REPRESENTED BY ITS SECRETARY).
2. THE COMMISSIONER OF CENTRAL TAX, BANGALORE NORTH WEST GST COMMISSIONERATE, 2ND FLOOR, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU - 560 051.
3. THE ASSISTANT COMMISSIONER OF CENTRAL TAX DIVISION-1, BANGALORE NORTH WEST GST COMMISSIONERATE, 2ND FLOOR, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU - 560 051.
4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX CIRCLE-IV, OFFICE OF THE COMMISSIONER OF CENTRAL TAX, AUDIT II COMMISSIONERATE, JSS TOWERS, 100 FEET RING ROAD, BANASHANKARI III STAGE, BENGALURU - 560 085.
5. THE STATE BANK OF INDIA, SSI KUAMRA PARK NO.179, S C ROAD, SESHADRIPURAM, KUMARAPARK WEST, BENGALURU - 560 020, (REPRESENTED BY ITS BRANCH MANAGER) ... RESPONDENTS (BY SRI JEEVAN J. NEERALAGI, ADVOCATE FOR R1 TO R4; SRI B.C. GURU, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO ISSUE DIRECTION AS THIS HON’BLE COURT MAY DEEM FIT, HOLDING THE RECOVERY NOTICE IN ANNEXURE-L AND RECOVERY NOTICE DATED 11.06.2019 IN ANNEXURE-P BOTH ISSUED BY R-3 AS BEING ILLEGAL AND UNTENABLE IN LAW, IN THE FACTS AND CIRCUMSTANCES OF THE INSTANT CASE AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER In the instant petition, petitioner has sought for the following reliefs:
a. Issue a writ of certiorari or such other writ, order or direction as this Hon’ble Court may deem fit, holding the recovery notice in C.No.IV/16/158/2019 DNWD1-OC No.50/19 dt. 12.4.2019 in Annexure-L and Recovery Notice in C.No.IV/16/158/2019 DNWD1 – OC No.574/19 dt. 11.6.2019 in Annexure-P both issued by respondent No.3 as being illegal and untenable in law, in the facts and circumstances of the instant case;
b. To direct respondent Nos. 1 to 4 to conduct adjudication proceedings in accordance with law by following the principles of natural justice.
2. Short question for consideration in the present petition is issuance of recovery notice and consequently, garnishee notice are prima facie ignoring the fact that petitioner has not paid the tax liability since it was not reflected in the Returns filed by the petitioner for the year 2013-14 on 25.04.2014.
3. On the other hand, learned counsel for the petitioner submitted that tax liability was paid in the month of December, 2013, inadvertently, it was not reflected in the Returns filed for the year 2013-14 on 25.04.2014.
4. In this background, Annexures-L and P are set aside. Writ petition stands allowed. The concerned authority is hereby directed to examine petitioner’s grievance stated in Annexure-F dated 22.12.2018 and pass appropriate speaking order and communicate the decision to the petitioner. The aforementioned exercise shall be completed within a period of two months from the date of receipt of a copy of this order.
Sd/- JUDGE VP