![]()
Case Summary: M/S. Bhawar Life Style vs. Commercial Tax
Officer (Enforcement) South Zone-CTO-59 & Others
Case
Number: Writ
Petition No. 12025 of 2024 (T-RES)
Court: High Court
of Karnataka at Bengaluru
Date of
Judgement: April 25,
2024
Facts of
the Case:
Petitioner:
M/S. Bhawar Life Style, represented by its authorized
representative/proprietor Sri Rajesh.
Respondents:
1. Commercial Tax Officer (Enforcement), South Zone-CTO-59,
Bengaluru
2. The Commissioner of Commercial Tax, Gandhinagar, Bengaluru
Petitioner's
Submissions:
1.
Challenge to Assessment Order: The petitioner challenged the assessment
order passed under Section 73(9) of the KGST/CGST Act, 2017, read with Rule 142
of the KGST/CGST Rules, 2017, and Section 50(1) of the KGST Act, 2017. The
specific order in question was dated February 15, 2023, for the financial year
2018-19.
2.
Service of Notice: The petitioner argued that the impugned order was passed
without proper service of notice and without providing sufficient and
reasonable opportunity to file objections and contest the proceedings.
3.
Violation of Natural Justice: It was contended that the order was violative
of principles of natural justice as the petitioner did not receive notices and
was not given an opportunity to be heard.
Respondents'
Submissions:
1.
Represented by learned HCGP.
2.
The respondents argued that the petition lacked merit and should be
dismissed.
Court's
Judgement
1.
Setting Aside the Impugned Order: The court
found that the impugned assessment order did not provide details regarding the
service of notices to the petitioner. The communication from the petitioner
showed that except for two notices dated July 15, 2023, and November 6, 2023,
there was no record of other notices being issued or served.
2.
Opportunity for Petitioner: Given the
ex-parte nature of the assessment order and in light of the principles of
natural justice, the court deemed it appropriate to set aside the impugned
order and remand the matter back to the first respondent for fresh
consideration.
3.
Fresh Consideration: The
petitioner was to be provided with an opportunity to file replies and contest
the proceedings anew. The court set a date for the petitioner to appear before
the respondent without awaiting further notice.
Order:
1.
Petition Allowed: The writ petition was allowed.
2.
Impugned Orders Set Aside: The impugned assessment order dated October 31,
2023, and the bank attachment notice dated March 22, 2024, were set aside.
3.
Remand for Reconsideration: The matter was remanded to respondent No.1 for
reconsideration in accordance with the law.
4.
Liberty to Submit Replies:The petitioner was granted liberty to submit
replies and documents to the first respondent, who was directed to consider
them and proceed in accordance with the law.
5.
Scheduled Appearance: The petitioner was directed to appear before
respondent No.1 on May 13, 2024, without awaiting further notice.
Conclusion:
The High Court of Karnataka emphasized the importance of procedural
fairness and the right to a fair hearing in tax adjudication processes under
the KGST/CGST Act, 2017. The court's decision to remand the matter for fresh
consideration ensures that the petitioner is given an adequate opportunity to
present their case.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
Click here
