2025 (4) TMI 1372 - HC - GST

Seeking to quash tax proceedings initiated under Section 74(5) of the KGST Act 2017 - HELD THAT - It is deemed just and appropriate to dispose of this petition by treating the impugned proceedings comprising of Annexure-E E1 and G as proceedings under Section 73 of the KGST Act instead of Section 74 of the KGST Act and by issuing further directions in this regard. Petition disposed off.

Summary

Summary:The Karnataka High Court, through Justice S.R. Krishna Kumar, disposed of the petition seeking to quash tax proceedings initiated under Section 74(5) of the KGST Act, 2017. The petitioner challenged the legality and jurisdiction of the notices and show cause notice (Annexures E, E1, and G) issued for the tax period April 2018 to March 2019.The Court held that the impugned proceedings under Section 74 shall be treated as proceedings under Section 73 of the KGST Act. The Court granted liberty to the petitioner to submit replies and documents, directing the respondents to consider them with "sufficient and reasonable opportunity." The petitioner was directed to appear before the respondent on 15.04.2025.Further, the petitioner was allowed to file an application to avail the Amnesty Scheme under Section 128A of the KGST Act, which the respondents must consider "in accordance with law."Key holdings include:- "The proceedings initiated by the respondents under Section 74 of the KGST Act... are treated as proceedings under Section 73 of the KGST Act."- Petitioners have "liberty... to submit reply documents" and to apply for the Amnesty Scheme under Section 128A.- Respondents must provide "sufficient and reasonable opportunity" before proceeding further.This order effectively recharacterizes the tax proceedings and ensures procedural fairness and opportunity for relief under the Amnesty Scheme.