Navayuga Engineering Company Limited Vs Joint Commissioner of Commercial Taxes (Karnataka High Court)
Navayuga Engineering Company Limited filed a writ petition before the Karnataka High Court challenging the revision order issued by the Joint Commissioner of Commercial Taxes. The petitioner sought multiple reliefs, including quashing the impugned order, declaring Section 15(2) of the CGST Act inapplicable to the case, holding the invocation of revisional powers under Section 108(1) invalid, and ruling that interest under Section 50 and penalty under Section 73(9) of the CGST/SGST Act were not leviable. The petitioner argued that the revision order was issued without jurisdiction and contrary to law.
The petitioner referred to a Revised Audit Observation dated 17.11.2023, to which a reply was submitted on 24.11.2023. This led to an Audit Report issued on 15.12.2023 in Form GST ADT-02, which was favorable to the petitioner. Based on this audit outcome, the petitioner contended that the respondent had no authority to initiate revision proceedings under Section 108 of the KGST Act through a notice dated 19.10.2024. It was emphasized that no proceedings under Section 73 or Section 74 of the KGST Act, which pertain to recovery of tax, had been initiated prior to or after the revision proceedings. Consequently, the petitioner argued that the revision proceedings and the resulting order were liable to be quashed.
