- 1 - NC: 2025:KHC:15636 WP No. 25539 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 25539 OF 2024 (T-RES) BETWEEN: M/S. IQBAL AHMED INFRA PROJECTS PVT. LTD., DOOR NO. 13-2-150(3)2, 2ND FLOOR, LEFTWING PAILANDS BUILDING, P.M RAO ROAD, MANGALORE 01. (REPRESENTED BY ITS MANAGING DIRECTOR, SIR IQUBAL AHMED) …PETITIONER (BY SRI. APRAMEYA K., ADVOCATE FOR SRI. ATUL KRISHNA RAO ALUR, ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE, GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS), 1ST FLOOR, VANIJYA THERIGE BHAVAN, MANGALURU - 575 001. 3. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-2, GST DIVISION, 4TH FLOOR, VANIJYA THERIGE BHAVAN MANGALORE - 575 001. 4. THE CHIEF PROJECT OFFICER, PROJECT IMPLEMENTATION UNIT, STATE HIGHWAY DEVELOPMENT PROJECT, PWD ANNEX, K.R CIRCLE, BENGALURU - 560 001. …RESPONDENTS (BY SRI. HEMAKUMAR K., AGA FOR R1 TO R4) Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:15636 WP No. 25539 of 2024 THIS W.P IS FILED ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE OF THE IMPUGNED ORDER PASSED BY KARNATAKA APPELLATE TRIBUNAL IN STA 39/2023 AT ANNEXURE-K INSOFAR AS THE PETITIONER IS CONCERNED AND ETC., THIS W.P, 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 No.39/2023 on the file of the Karnataka Appellate Tribunal, Bengaluru, is directed against the impugned order passed on IA No.1 dated 28.08.2024, whereby the application filed by the petitioner seeking waiver/dispensation of 30% of the disputed tax for the purpose of getting the appeal admitted and disposed of, was rejected by the Tribunal. 2. A perusal of the material on record will in indicate, aggrieved by the order dated 25.09.2020 passed under Section 39(1) of the KVAT Act, the petitioner has preferred the aforesaid appeal in STA 39/2023 which is pending before the Tribunal. In the said appeal, the petitioner filed an instant application IA No.1 seeking waiver/dispensation of mandatory pre-deposit of 30% of the tax amount. The said application having been opposed by the respondent, the Tribunal - 3 - NC: 2025:KHC:15636 WP No. 25539 of 2024 proceeded to pass the impugned order rejecting the application on the ground that Section 63(4) of the KVAT Act, is a mandatory provision and the question of Tribunal waving mandatory pre-deposit would not arise in the facts and circumstances of the case. Aggrieved by the impugned order, the petitioner is before this Court by way of the present petition. 3. A perusal of the material on record, including the application filed by the petitioner under Section 151 of CPC will indicate that it is the specific contention of the petitioner that due to non-payment of amount due by respondent No.4 - KHDP, the petitioner is not in a position to make 30% of the mandatory pre-deposit and as such the said mandatory pre- deposit may be waived in the facts and circumstances of the instant case. 4. Per contra, learned Additional Government Advocate has filed a memo along with a statement showing details of payment made to the petitioner including a sum of Rs.2,62,71,504/- said to have been paid by respondent No.4 to the petitioner during March, 2025. - 4 - NC: 2025:KHC:15636 WP No. 25539 of 2024 5. In view of the aforesaid facts and circumstances and in the peculiar/special facts and circumstances obtaining in the instant case, I deem it just and appropriate to set aside the impugned order and dispose of IA No.1 by directing the petitioner to make a pre-deposit of 15% of the tax amount within a period of six weeks from today and by issuing certain directions in this regard. 6. In the result, I pass the following: ORDER (i) The writ petition is hereby allowed. (ii) The impugned order at Annexure-K is hereby set aside. (iii) IA No.1 filed by the petitioner in STA No.39/2023 is hereby disposed of directing the petitioner to pay a sum of Rs.45,00,000/- before 3rd respondent within a period of six weeks from today. (iv) Immediately upon the petitioner making such deposit and producing proof of the same before the KAT, Bengaluru, the Tribunal shall admit the appeal and dispose - 5 - NC: 2025:KHC:15636 WP No. 25539 of 2024 of the appeal on merits in accordance with law. (v) It is needless to state that the said amount deposited by the petitioner would subject to the final outcome of the appeal. (vi) It is made clear that this order is passed in the peculiar/special facts of circumstances of the instant case and the same shall not be treated as a precedent nor carry any presidential value for any purpose. Sd/- (S.R.KRISHNA KUMAR) JUDGE AP List No.: 1 Sl No.: 4