Case Title | Shreelakshmi Transport vs The Joint Commissioner Davanagere,The Commercial Tax Officer Ballari . |
Court | Karnataka High Court |
Honorable Judges | Justice Sachin Shankar Magadum |
Citation | 2021 (3) GSTPanacea 25 HC Karnataka |
Judgement Date | 9-March-2021 |
Council for Petitioner | Narayan G.Pasalakar |
Council for Respondent | Dhyan Chinnappa Shivprabhu S.Hiremath |
The Karnataka High Court bench of Justice Sachin Shankar Magadum has held that since order has been passed without affording any opportunity to the petitioner hence order is set side.
FACTS OF THE CASE
Refund on Input Tax Credit (ITC) was denied of the Petitioner on Inverted Supply on the ground that input & output supplies are being same as arbitrary, Illegal and constitutionally invalid.
Writ petition was filed by the petitioner challenging the order passed by respondent No.1/appellate authority. The petitioner has also sought writ in the nature of mandamus to issue directions to respondent No.1 to admit the appeal and decide the appeal on merits on all the points raised in the appeal by providing adequate opportunity of hearing to the petitioner
The grievance of the petitioner is that the respondent-authorities without conducting fair and proper enquiry and without giving adequate notices to all stake holders and aggrieved persons has passed impugned exparte confiscation order on 12.01.2021
Petitioner is running a transport business in the name and style of Sreelakshmi Transport as its sole proprietor. For transport of consignment of Arecanut of 17500 Kg worth Rs.49,00,000/- and IGST at Rs.2,45,000/- with total invoice value of Rs.51,45,000/- from him to M/s Rohini Traders, Delhi. Having ascertained the availability of the vehicle, the consignor raised his invoice and the same was cross-verified by the petitioner. It is further stated that consignor and owner of the goods raised E-way bill NO.5111 9927 8944 on 01.09.2020 and handed over to the petitioner as per Annexure-D
The goods and conveyance being transported by the petitioner was proceeding from Kasargod to Delhi via Karnataka, at Kushtagi National Highway No.50, the Commercial Tax Officer (Enforcement) Ballari intercepted the goods and conveyance and demanded the production of invoice, E-way bill and carrier note
The concerned officer ordered for physical verification of the goods and conveyance also have passed detention order on 08.09.2020 & issued notice for confiscation on 21.09.2020
COURT HELD
Considering the facts as recorded, held that order has been passed without affording any opportunity to the petitioner hence order is set side .Proceed to hear the main matter in accordance with law after providing reasonable opportunity to the present.
The Appellate Authority shall pass appropriate orders on the application and thereafter proceed to hear the main matter in accordance with law after providing reasonable opportunity to the present petitioner herein
With these observations, the writ petition stands disposed off.
ANALYSIS OF THE JUDGEMENT
Since prima facie the order under challenge is passed without affording any opportunity to the petitioner, the impugned order/endorsement issued by the 1st respondent as per Annexure-T is not sustainable and the same is set aside. The matter stands remitted back to the 1st respondent to hear afresh by affording opportunity to the present petitioner herein.
As transporter has deposited the entire penalty tax and fine before the competent authority. Thus the Appellate Authority shall be directed to consider the application filed by the petitioner seeking release of goods and vehicle.
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