- 1 - NC: 2025:KHC:12948 WP No. 7439 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 7439 OF 2025 (T-RES) BETWEEN: M/S. INDIA SUGARS AND REFINERIES LTD., NO.102 AND 108, MIDFORD HOUSE, MIDFORD GARDENS, OFF M.G. BENGALURU 560001 (REPRESENTED BY ITS LIAISON OFFICER, SRI. ARUN A., S/O OF ANTHONY CRUZ, AGED ABOUT 34 YEARS) (REGISTERED UNDER THE KARNATAKA SALES TAX ACT, 1957 AND CENTRAL SALES TAX ACT, 1956) …PETITIONER (BY SRI. K.K.CHYTHANYA SR. COUNSEL FOR SRI TATA KRISHNA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS FINANCE SECRETARY, GOVERNMENT OF KARNATAKA, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BENGALURU – 560001 2. THE KARNATAKA APPELLATE TRIBUNAL, REPRESENTED BY ITS CHAIRPERSON, M.S. BUILDING, AMBEDKAR VEEDHI, BENGALURU – 560001 3. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (AUDIT), BELLARY, LAL BAHADDUR SHASTHRI COMPLEX, BUDDU COMPLEX, MOTI CIRCLE, BELLARY - 583104 …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA FOR R- 1 TO 3) Digitally signed by NANDINI D Location: High Court of Karnataka - 2 - NC: 2025:KHC:12948 WP No. 7439 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE, THE COMMON ORDER PASSED BY THE SECOND RESPONDENT IN IA NO. 1/2022 IN STA NOS. 16/2021 AND 17/2021, DATED 05.09.2024 FOR AYS 2014-15 AND 2015-16 RESPECTIVELY, ENCLOSED AS ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER This petition by the appellant in STA Nos.16/2021 and 17/2021 on the file of Karnataka Administrative Tribunal (hereinafter referred to as ‘KAT’ for short) is directed against the impugned order, whereby the application I.A.No.I filed by the petitioner – appellant under Section 151 of Cr.P.C seeking waiving/dispensation of pre-deposit, was rejected by the Tribunal. 2. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner is not carrying on operations and due to financial hardship, petitioner is not in a position to make a pre-deposit for the purpose of prosecuting the appeal and the same may be viewed as a special case having regard to petitioner’s total inability to make pre-deposit. It is also - 3 - NC: 2025:KHC:12948 WP No. 7439 of 2025 submitted that petitioner has been declared as sick industrial company and on this ground also, the petitioner has inability to make pre-deposit. It is further submitted that the sole/primary ground for rejecting of I.A.No.I for waiving/dispensation of pre- deposit is that the Tribunal does not have jurisdiction/authority of law for dispensation/waiving of pre-deposit and as such, the petitioner has approached this Court seeking waiver/dispensation of pre-deposit invoking the extraordinary jurisdiction conferred on this Court under Articles 226 and 227 of the Constitution of India. It is submitted that Tribunal may be directed to dispose of the appeals on merits without insisting on pre-deposit within stipulated time frame. 3. Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be set aside. 4. A perusal of the impugned order will indicate that the sole/primary ground assigned by KAT for rejecting I.A.No.I is that the extraordinary jurisdiction conferred on this Court under Article 226 and 227 of Constitution of India could not be exercised by the KAT; however having regard to the peculiar/special facts and - 4 - NC: 2025:KHC:12948 WP No. 7439 of 2025 circumstances of the case, which indicate that prima facie petitioner has not been carrying on operations from 2016 onwards and is not in a position to make pre-deposit, without expressing any opinion on the merit/demerits of the case, I deem it just and appropriate to set aside the impugned order and dispose of application of the petitioner-appellant under Section 151 of CPC by directing the Karnataka Administrative Tribunal to dispose of the appeal on merits without insisting on pre-deposit within a stipulated time frame. 5. In the result, I proceed to pass the following: ORDER i) The petition is hereby allowed. ii) The impugned order dated 05.09.2024 passed in I.A.No.I in STA Nos.16/2021 & 17/2021 at Annexure – A is hereby set aside. iii) I.A.No.I is disposed of directing the Karnataka Appellate Tribunal to dispose of STA Nos.16/2021 and 17/2021 within a period of three months from the date of receipt of the - 5 - NC: 2025:KHC:12948 WP No. 7439 of 2025 copy of this order without insisting on pre-deposit by petitioner. iv) It is needless to state that this order is made in the peculiar/special facts and circumstances obtaining in the instant case and this order shall not be treated as a precedent nor shall have any precedential value for any purpose, whatsoever. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 20