IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF JANUARY, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.54921/2018 (T – RES) BETWEEN:
SRI N.G.NAGARAJU S/O GURAPPA AGED ABOUT 68 YEARS PROPRIETOR VENKATESHWARA BAR & RESTAURANT No.177/8, HULIYAR ROAD CHIKKANAYAKANAHALLI TUMKUR DISTRICT-572214. ... PETITIONER [BY SRI NAGARAJAPPA.A., ADV.] AND:
1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES [AUDIT AND RECOVERY] TIPTUR, TUMKUR DISTRICT-572214.
2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES [APPEALS VI] 8TH BLOCK, KORAMANGALA BENGALURU-560095. …RESPONDENTS [BY SRI T.K.VEDAMURTHY, AGA.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE ISSUED UNDER SECTION 45 OF THE KVAT ACT, 2003 DATED 29.11.2018 ISSUED BY RESPONDENT No.1 VIDE ANNEXURE-E AND AS WELL AS THE ORDER OF THE KAT IN STA No.917/2016 DATED 16.12.2016 IN SO FAR AS INSISTING BANK GUARANTEE FOR THE 70% OF THE AMOUNT UNDER DISPUTE VIDE ANNEXURE-D AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Heard the learned counsel appearing for the parties.
2. The petitioner has challenged the notice issued under Section 45 of the Karnataka Value Added Tax Act, 2003 ['Act' for short] dated 29.11.2018 by the respondent No.1 as well as the order of the Karnataka Appellate Tribunal, Bengaluru ['KAT’ for short] in S.T.A.No.917/2016 dated 16.12.2016 in so far as insisting bank guarantee for the 70% of the amount under dispute. Interim prayer was sought by the petitioner seeking for stay of the notice issued under Section 45 of the Act dated 29.11.2018 by the respondent No.1 marked at Annexure-E to the writ petition.
3. This Court while considering the interim prayer sought by the petitioner granted an interim order on 07.12.2018 as prayed for, after hearing the learned counsel for the petitioner as well as the learned Additional Government Advocate and the same reads as under:
“Heard the learned counsel for the petitioner and the learned AGA.
There shall be an interim order of stay as prayed for subject to petitioner depositing an additional sum of equivalent to 30% within a period of four weeks.
List on 04.01.2019.”
4. Learned counsel for the petitioner has filed a memo dated 04.01.2019 submitting that the said order is complied with and the same is not disputed by the learned AGA.
5. In view of the aforesaid, adjudication on the impugned notice as well as the order would becomes academic. Hence, in the interest of justice, it would be appropriate to dispose of this matter with a direction to the KAT to consider and dispose of the appeal in S.T.A.No.917/2016 on merits of the case in accordance with law in an expedite manner preferably within a period of four months from the date of receipt of certified copy of this order. Ordered accordingly.
However, it is made clear that the respondents shall not initiate coercive recovery proceedings till the disposal of the appeal before the KAT in S.T.A.No.917/2016.
With the aforesaid observations, Writ Petition stands disposed of.
Sd/- JUDGE NC.