IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2019 PRESENT THE HON’BLE MR.ABHAY S. OKA, CHIEF JUSTICE AND THE HON’BLE MR.JUSTICE H.T.NARENDRA PRASAD WRIT PETITION NO. 1662 OF 2019 (GM-MM-S) BETWEEN:
M/s PROFESSIONAL GLOBAL CONSTRUCTIONS PRIVATE LIMITED, OFFICE AT NO.165, GROUND FLOOR, NALLUR MAIN ROAD, CHANNAGIRI TALUK, DAVANAGERE DISTRICT-577 213, REPRESENTED BY ITS DIRECTOR, SRI. HANUMANTHAPPA.
... PETITIONER (BY SHRI GANAPATHI BHAT VAJRALLI, ADVOCATE) AND:
1. THE STATE OF KARNATAKA REPRESENTED BY ITS CHIEF SECRETARY, VIDHANA SOUDHA, DR. B. R. AMBEDKAR VEEDHI, BENGALURU-560 001.
2. THE PRINCIPAL SECRETARY DEPARTMENT OF MINES AND GEOLOGY, VIDHANA SOUDHA, DR. B. R. AMBEDKAR VEEDHI, BENGALURU-560 001.
3. THE DIRECTOR DEPARTMENT OF MINES AND GEOLOGY, KHANIJA BHAVAN, BENGALURU-560 001.
4. THE SENIOR GEOLOGIST DEPARTMENT OF MINES AND GEOLOGY, NO.1948/1, INFRONT OF ANJANEYA TEMPLE, VIDHYA NAGAR, DAVANAGERE- 577 005.
... RESPONDENTS (BY SHRI BHANUPRAKASH V.G., AGA ) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED DEMAND NOTICE DATEDD 5.12.2017 ISSUED BY THE R-4 AS PER ANNEXURE-L, AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, CHIEF JUSTICE MADE THE FOLLOWING:
ORDER Heard the learned counsel for the petitioner and the learned Additional Government Advocate for the respondents.
2. The impugned demand notice dated 5th December, 2017 which is the subject matter in this writ petition, is based on the audit report for the year 2016-17. By the demand notice, a demand is made for the sum of Rs.10,36,762/- consisting of Royalty of Rs.8,66,794/- and interest thereon.
3. The contention of the petitioner is that along with the letter dated 19th May 2017, an offer was made to pay a sum of Rs.4,90,000/- by demand draft. But the same was not accepted and the demand draft was returned on 21st May, 2017.
4. After hearing the learned counsel for the parties, we find that before raising the demand for a sum of Rs.10,36,762/-, the concerned respondents ought to have issued a show-cause notice to the petitioner and only after giving an opportunity to file a reply, the demand, if any, could have been raised. Only on this ground, we propose to interfere in this writ petition. While we do so, we make it clear that it will always be open for the petitioner to tender the amount of Rs.4,90,000/- and it will always be open for the respondents to accept the same without prejudice to their rights and contentions.
5. Accordingly, we pass the following order:
ORDER (i) The respondents are directed not to recover any amount from the petitioner on the basis of the notice dated 5th December 2017, as an opportunity of being heard has not been granted to the petitioner;
(ii) However, it will be open to the respondents to issue a show-cause notice to the petitioner for raising the same demand and after giving an opportunity to file its reply and produce documents, to pass an order in accordance with law.
(iii) The writ petition is disposed of with the above directions.
Sd/- CHIEF JUSTICE Sd/- JUDGE vgh*