Toshiba Software (India) Private Limited Vs Union of India Through The Secretary (Karnataka High Court)
Karnataka High Court addressed a petition filed by Toshiba Software (India) Private Limited challenging an Order-in-Original dated December 28, 2023, issued by the Goods and Services Tax (GST) authorities. The company sought to quash this order, arguing procedural flaws, and requested the court prohibit further proceedings based on it. The core of the dispute centered on the single order covering multiple financial periods: 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23, and April to July 2023.
Represented by counsel Bharat Raichandani, Toshiba Software contended that the consolidated nature of the order prejudiced their ability to avail benefits under the GST Amnesty Scheme. This scheme, introduced via Section 128(A) of the Central Goods and Services Tax Act, 2017 (effective November 1, 2024, as per the petitioner’s submission, although the effective date might need verification outside the provided text), specifically applied to the financial years 2017-18, 2018-19, and 2019-20. By issuing a single order encompassing these years along with subsequent periods, the authorities effectively hindered the petitioner’s access to the scheme for the eligible years.
The petitioner requested the High Court to set aside the combined order and direct the relevant GST authority (Respondent No. 3) to reconsider the matter afresh. Specifically, they asked for separate, individual orders to be issued for each distinct financial period. This separation would allow Toshiba Software to formally apply for and potentially receive the benefits of the Amnesty Scheme for the initial three years (2017-20), while reserving their right to pursue appropriate legal remedies for the subsequent periods (2020-21 onwards) as necessary. The counsel for the respondents argued the petition lacked merit.
Accepting the petitioner’s argument regarding the impediment caused by the consolidated order in relation to the Amnesty Scheme, the Karnataka High Court allowed the petition. The court set aside the impugned Order-in-Original dated December 28, 2023. It remitted the case back to the GST authority (Respondent No. 3) for fresh consideration in accordance with the law. The court explicitly directed the authority to issue separate orders for each financial period covered (2017-18 through April-July 2023) by March 2025. Furthermore, the court permitted Toshiba Software to avail the benefits of the Amnesty Scheme for the years 2017-18, 2018-19, and 2019-20. Liberty was granted to the petitioner to pursue legal recourse for the remaining periods, with the court expressing no opinion on the merits of potential disputes related to those later years.
The matter was argued by Ld. Counsel Bharat Raichandani
