Indian Potash Limited Vs Deputy Commissioner of Commercial Taxes (Karnataka High Court)
In a recent ruling, the Karnataka HC held that Notice and endorsement issued without waiting for expiry of the appeal period of three months is illegal and arbitrary and liable to be quashed.
The respondent passed an order in original on 22.12.2023, which would entitle the petitioner to prefer an appeal against the said order within a period of four (4) months (3 + 1) from 22.12.2023 i.e., on or before 22.04.2024. It is the grievance of the petitioner that despite non-expiry of the appeal period of three months ending on 22.04.2024, the respondent issued the impugned Notice dated 23.01.2024 followed by the impugned Endorsement dated 09.02.2024, which are illegal, arbitrary and same deserves to be quashed. It is also submitted that the petitioner would prefer an appeal on or before 22.04.2024 and meanwhile, 10% that has been debited from the electronic credit ledger of the petitioner during the period 01.03.2024 to 20.03.2024, may be treated/stipulated as the pre-deposit for the purpose of appeal and necessary directions may be issued to the Appellate Authority to dispose of the appeal in accordance with law.
HC held that the order in original was passed on 22.12.2023, the petitioner would be entitled to prefer an appeal within a period of four (4) months (3 + 1) i.e., on or before 22.04.2024 as contemplated under Section 107 of the KGST hence impugned Notice dated 23.01.2024 and the impugned Endorsement dated 09.02.2024 issued by the respondent within the appeal period is clearly illegal and arbitrary and the same deserves to be quashed and necessary directions be issued to the petitioner and the appellate authority for the purposes of the appeal to be preferred by the petitioner.
