- 1 - NC: 2025:KHC:13244 WP No. 6425 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 6425 OF 2025 (T-RES) BETWEEN: M/S SREE BALAJI PAKAGING INDUSTRY, REPRESENTED BY ITS PROPRIETOR, MR MANJUNATH REDDY R 288, KACHANAYAKANAHALLI SUB LAYOUT, 1ST PHASE, BOMMASANDRA INDUSTRIAL AREA, JIGANI HOBLI, ANEKAL TALUK, BANGALORE- 560 099 …PETITIONER (BY SRI. HANJER RAGHAVENDRA BASAVARAJ, ADVOCATE) AND: 1. UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, RASHTRAPATI BHAWAN, DEFENCE HEAD QUARTERS, NEW DELHI- 110 001 2. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS REPRESENTED BY ITS CHAIRMAN, HAVING ITS OFFICE AT NORTH BLOCK, RASHTRAPTI BHAWAN DEFENCE HEAD QUARTERS, NEW DELHI- 110 001 Digitally signed by LEELAVATHI S R Location: High Court of Karnataka - 2 - NC: 2025:KHC:13244 WP No. 6425 of 2025 3. THE PRINCIPAL COMMISSIONER CENTRAL TAX BANGALORE SOUTH COMMISSIONERIATE, BMTC BUILDING, 1ST FLOOR, TTMC, BANASHANKARI, BANGALORE- 5960 070 4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX CENTRAL TAX AUDIT-I COMMISSIONERATE, 2ND FLOOR, MBTC, TTMC, BANASHANKARI, BANGALORE- 5960 070 5. THE ASSISTANT COMMISSIONER OF CENTRAL TAX SOUTH DIVISION-9, 7TH FLOOR, C WING, KENDRIYA SADAN, KORAMANGALA, BANGALORE- 560 034 …RESPONDENTS (BY SRI. MADANAN PILLAI, CGC FOR R-1; SRI. ARAVIND V. CHAVAN, ADVOCATE FOR R-2 TO R-5) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE DIRECTION IN THE NATURE OF ANY WRIT DECLARING THAT SECTION 146 OF THE FINANCE (NO. 2) ACT, 2024 ANNX-A AND NOTIFICATION NO. 21/24 CENTRAL TAX DTD 08.10.24 (ANNX-B) ISSUED BY THE R1 RESPONDENT IN EXTENDING THE BENEFIT OF WAIVER OF INTEREST AND PENALTY ONLY TO NOTICES ISSUED UNDER SECTION 73 OF THE CENTRAL GOODS AND SERVICE TAX ACT, 2017 ARE AB INITIO VOID, ILLEGAL AND ULTRA VIRES THE CONSTITUTION AND THEREBY AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:13244 WP No. 6425 of 2025 CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: “a) Issue a writ or order or direction in the nature of any writ declaring that Section 146 of the Finance (No.2) Act, 2024 (Annexure-‘A’) and Notification No.21/2024 – Central Tax dated 08.10.2024 (Annexure-‘B’) issued by the 1st Respondent in extending the benefit of waiver of interest and penalty only to notices issued under Section 73 of the Central Goods and Service Tax Act, 2017 are ab initio void, illegal and ultra vires the constitution; and thereby, b) Issue a writ, order or direction in the nature of Certiorari by quashing the impugned Show Cause Notice (GST) bearing SCN No. 96/2021-22 (CTA-1)/AC (DIN- 20210857TD0000332103) dated 18-08-2021 issued by the 4th Respondent (Annexure- 'C') and consequential impugned Order-In-Original bearing Sl.No. 195/2024-25 SD9 (DIN- 20241057YV000000D0DC) dated 28.10.2024 in FORM GST DRC-07 passed by the 5th Respondent (Annexure- 'D'); c) Alternatively, issue a writ or order or direction in the nature of certiorari by quashing the impugned Show Cause Notice (GST) bearing SCN No. 96/2021-22 (СТА-1)/AC (DIN-20210857TD0000332103) dated 18-08-2021 issued by the 4th Respondent (Annexure- 'C') by invoking the provisions of Section 74 of the CGST Act, 2017 and thereby issue a writ or order or direction in the nature of mandamus - 4 - NC: 2025:KHC:13244 WP No. 6425 of 2025 directing the Respondents to treat the show cause notice as if it were issued under Section 73 of the CGST Act, 2017 and thereby to extend the benefit of Section 146 of the Finance (No. 2) Act, 2024 (Annexure- 'A') and Notification No.21/2024-Central Tax dated 08.10.2024 (Annexure- 'B') issued by the 1st Respondent; d) Alternatively, issue a writ or order or direction in the nature of any writ by extending the benefit of waiver of interest and penalty to the Petitioner as per Section 128A of the Central Goods and Service Tax Act, 2017 inserted through Section 146 of the Finance (No. 2) Act, 2024 (Annexure- 'A') and Notification No.21/2024-Central Tax dated 08.10.2024 (Annexure- 'B'); e) Pass such other order/s or direction/s as deemed fit and proper in the facts and circumstances of the case in the interest of justice. 2. Heard learned counsel for the petitioner and learned CGC for respondent No.1 and learned counsel for respondent No.2 and perused the material on record. 3. After arguing the matter for sometime, learned counsel for the petitioner submits that the petitioner intends to avail the benefit of Amnesty Scheme as contemplated under Section 128(A) of the Central Goods and Service Act, 2013 (for short “the CGST - 5 - NC: 2025:KHC:13244 WP No. 6425 of 2025 Act”) and as such, the impugned order purported to have been passed under Section 74 of the CGST Act may be set aside and the matter may be remitted back to respondent No.5 for reconsideration afresh, in accordance with law, by treating the proceedings as proceedings under Section 73 of the CGST Act and pass appropriate order under Section 73(9) of the CGST Act and by directing respondent No.5 to grant the benefit of Amnesty Scheme, in favour of the petitioner, who would file such an application before respondent No.5. 4. 4. The aforesaid submission is placed on record. 5. In view of the aforesaid facts and circumstances and the submission made by learned counsel for the petitioner that the petitioner intends to avail the benefit of Amnesty Scheme under Section 128(A) of the CGST Act, I deem it just and appropriate to set aside the impugned order at Annexure-D and remit the matter back to respondent No.5 for reconsideration afresh, in accordance with law by issuing certain directions. 6. In the result, I pass the following: ORDER i. The petition is allowed. - 6 - NC: 2025:KHC:13244 WP No. 6425 of 2025 ii. The impugned Order-in-Original at Annexure-D dated 28.10.2024 passed by respondent No.5, is hereby set aside. iii. The matter is remitted back to respondent No.5 for reconsideration afresh, in accordance with law. iv. The petitioner shall appear before respondent No.5 on 01.04.2025 without awaiting further notice from respondent No.5. v. Respondent No.5 shall pass appropriate orders by treating the proceedings under Section 73 of the CGST Act and pass appropriate orders under Section 73(9) of the CGST Act, within one week from 01.04.2025. vi. The petitioner is also entitled to file an application to avail the benefit of Amnesty Scheme and if such an application is filed before respondent No.5, respondent No.5 shall grant petitioner the benefit of Amnesty Scheme, as contemplated under Section 128(A) of the CGST Act, in accordance with law. vii. All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 1 Sl No.: 26