NUVTEQ Solutions Private Limited Vs Joint Commissioner of Commercial Taxes (Karnataka High Court)
The Karnataka High Court considered a challenge to an adjudication order passed under Section 73(9) of the Karnataka Goods and Services Tax Act/Central Goods and Services Tax Act, 2017, and an appellate order rejecting the appeal on the ground of limitation. The petitioner contended that a demand of Rs.72,08,960 had been recovered solely due to a procedural lapse and sought refund of the amount. It was submitted that the transactions qualified as “export services” under Section 2(6) of the Act and were zero-rated supplies, but the demand for CGST/KGST had been confirmed only on the ground that the petitioner had not furnished a Letter of Undertaking (LUT) in the prescribed form.
The High Court observed that the adjudicating authority had failed to examine the nature of the transactions in light of the relevant statutory provisions. Referring to its earlier decision based on the Circular dated 15.03.2018, the Court reiterated that non-furnishing of an LUT or bond under Rule 96A of the CGST Rules is not an incurable defect and cannot be regarded as mandatory when ex post facto filing is permissible depending on the facts and circumstances of the case.
