2024 (2) TMI 710 - HC - GST

Non-payment of the Goods and Services Tax (GST) - Seeking issuance of writ of certiorari to set aside the pre-intimation notice as well as Summary of Show Cause Notice and the order passed under Section 73(9) of the Karnataka Goods and Services Tax Act - also seeking for issuance for writ of mandamus directing respondent No.2 to enter into a Supplementary Tender Agreement - HELD THAT - The pre-intimation notice at Annexure- G , Summary of Show Cause Notice at Annexure- H and impugned order under Section 73(9) of the Act at Annexure- J as well as impugned order at Annexure- K are set aside and writ of mandamus is issued in terms of observations made in 2023 (6) TMI 93 - KARNATAKA HIGH COURT as prayed for - respondent No. 2 is directed to enter into necessary Supplementary Tender Agreement as is permissible in terms of the observations made in W.P. No. 9721/2019. Needless to state that this order would be subject to any order in appeal against the order passed in W.P. No. 9721/2019. If that were to be so, the notice at Annexures- G and H would stand revived. Petition disposed off.

Summary

Issues:
The issues involved in the judgment are the issuance of writ of certiorari to set aside the pre-intimation notice, Summary of Show Cause Notice, and orders passed under Section 73(9) of the Karnataka Goods and Services Tax Act, as well as seeking a writ of mandamus directing respondent No.2 to enter into a Supplementary Tender Agreement.

Pre-Intimation Notice and Show Cause Notice:
The petitioner sought to set aside the pre-intimation notice and Summary of Show Cause Notice, arguing that non-payment of Goods and Services Tax (GST) would prejudice their interests by adding an additional liability, impacting the profit margin. The court referred to previous observations and directed the disposal of the present petition on similar terms.

Order in W.P. No. 9721/2019:
The court referred to the order in W.P. No. 9721/2019, issuing directions and guidelines to calculate works executed pre-GST, assess payments received pre-GST, and determine tax differences for works completed or to be completed after 01.07.2017. It directed the submission of representations to respective employers within a specified period and allowed petitioners to file GST returns without interest or penalty. The court also restrained GST authorities from taking precipitative action for a specified period.

Disposal of the Petition:
Considering previous orders and appeals, the court set aside the pre-intimation notice, Show Cause Notice, and impugned orders, issuing a writ of mandamus in line with observations made in W.P. No. 9721/2019. Respondent No. 2 was directed to enter into a Supplementary Tender Agreement as permissible. The order clarified that any subsequent appeal against the order in W.P. No. 9721/2019 would impact the current decision.

Conclusion:
The judgment disposed of the petition, keeping all contentions open and ensuring that the effect of the order setting aside certain notices would not defeat subsequent actions or orders under the Act. The apprehension of the revenue regarding limitation was addressed appropriately, and the petition was ultimately disposed of, with all contentions being kept open for further proceedings.