Inter Dimensions V. Assistant Commissioner Division-1, Bengaluru GST East Commissionerate

WP/14417/2024

AI Insights

The case involves M/s Inter Dimensions, a partnership firm, which challenged an order-in-original issued by the Assistant Commissioner, Division-1, Bengaluru GST East Commissionerate. The petitioner contested the inclusion of 'Sale of Goods' under Service Tax for the Assessment Year 2015-16 and the taxation of services rendered to the government for the Assessment Year 2016-2017, which they claimed were exempt. The petitioner had previously sought an extension to submit explanations for discrepancies between their Income Tax Return and ST-3 returns due to illness, which was not considered in the initial assessment. The court found merit in the petitioner's request for a re-evaluation and thus set aside the original order, remanding the case for further consideration.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799758 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-06-2024
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JEEVAN NEERALAGI
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Year; Exemptions; Order-in-Original; Quash; Service tax
• Section: 128/2023-24

Judgement Text

" - 1 - NC: 2024:KHC:21975 WP No. 14417 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 14417 OF 2024 (T-RES) BETWEEN: M/S INTER DIMENSIONS A PARTNERSHIP FIM HAVING ITS PLACE OF BUSINESS AT 34/1 GROUND FLOOR, A CROSS OPP NANDA GROUND AUSTIN TOWN BENGALURU - 560 047 REPRESENTED BY ITS PARTNER MR. BABU THOMAS. …PETITIONER (BY SRI SYED KHAMRUDDIN, ADV.) AND: THE ASSISTANT COMMISSSIONER DIVISION -1, BENGALURU GST EAST COMMISSIONERATE B WING 6TH FLOOR TRAFFICE AND TRANSIT MANAGEMENT CENTRE BMTC BUS STAND OLD AIRPORT ROAD, DOMLUR, BENGALURU - 560 071. …RESPONDENT (BY SRI JEEVAN J. NEERALAGI, ADV.) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER-IN-ORIGINAL BEARING NO. 128/2023-24, DIN 20240257000000106024 DTD 14.02.2024 (ISSUED ON 14.02.2024) PASSED BY THE RESPONDENT (ANNEXURE-A) THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:21975 WP No. 14417 of 2024 ORDER 1. Petitioner has called in question the validity of the order in original at Annexure-A. 2. It is the contention of the petitioner that insofar as the Assessment Year 2015-16, the order includes Sale of Goods which is outside the purview of Service Tax and insofar as Assessment Year 2016-2017, services is rendered to the Government and is exempt. 3. It is submitted that during the course of proceedings before the assessing authority, the petitioner had sought for extension of time to submit explanation for the apparent difference between the revenue declared in the Income Tax Return and the ST-3 returns. It is averred that due to illness of the petitioner, the said explanation and documents proposed to be filed before the authority in support of the case of the assessee could not be filed. 4. It is noticed that in the assessment order, the authority has proceeded taking note of absence of explanation. However, in the light of the nature of contention raised as noticed above for the year 2015-2016 wherein learned counsel for the - 3 - NC: 2024:KHC:21975 WP No. 14417 of 2024 petitioner would submit that Sale of Goods is included and as regards assessment year 2016-2017, services made to the Government is also brought within the Service Tax net, which petitioner claims to be exempt and requires consideration, it would meet ends of justice to relegate the matter to the authority after setting aside the order at Annexure-A with further liberty to the petitioner to participate in the proceedings and furnish additional explanation and documents as requested in their letter dated 18.12.2023. 5. Accordingly, the order at Annexure-A is set-aside and the matter is disposed off relegating the matter to the respondent to continue proceedings after affording an opportunity by taking note of the request of the petitioner as noticed above. 6. All contentions are kept open. Accordingly, the petition is disposed off. SD/- JUDGE DN "