- 1 - NC: 2025:KHC:14433 WP No. 24303 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.24303 OF 2023 (T-RES) BETWEEN: M/S MITSUBISHI ELEVATOR INDIA PVT. LTD., PLOT NO.59-63 AND 65-71, KIADB VEMAGAL INDUSTRIAL AREA, VEMAGAL, KOLAR – 563 102. (REPRESENTED BY MR. MURALIDHARAN) CHIEF FINANCIAL OFFICER, INCORPORATED UNDER THE COMPANIES ACT, 1956 …PETITIONER (BY SRI. RAVI RAGHAVAN, MRS. MEGHNA LAL AND SRI. SUDHANVA KUMAR J.M., ADVOCATES) AND: 1. UNION OF INDIA REPRESENTED BY ITS UNDER SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI – 110 001. 2. STATE OF KARNATAKA THROUGH ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU – 560 001 3. DIRECTORATE GENERAL OF GOODS & SERVICES TAX, GURUGRAM ZONAL UNIT, 3RD FLOOR, PLOT 44, INSTITUTIONAL AREA, SECTOR-32, OPPOSITE MEDANTA MEDICITY, GURUGRAM – 122 001. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:14433 WP No. 24303 of 2023 4. ADDITIONAL / JOINT COMMISSIONER OF CENTRAL TAX, CGST BENGALURU EAST COMMISSIONERATE, TTMC BMTC BUS STAND COMPLEX, HAL AIRPORT ROAD, DOMLUR, BENGALURU – 560 071. 5. JOINT COMMISSIONER OF COMMERCIAL TAXES, (VIGILANCE), III FLOOR, A BLOCK, VTK-2 BUILDING, KORAMANGALA, BENGALURU – 560 047. 6. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (VIGILANCE)-01, III FLOOR, A BLOCK, VTK-2 BUILDING, KORAMANGALA, BENGALURU – 560 047 …RESPONDENTS (BY SRI. AJAY PRABHU M., CGSC FOR R1, SRI. HEMAKUMAR K., AGA FOR R2, R5 & R6, SRI. JEEVAN J. NEERALGI, ADV. FOR R3 & R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED SHOW CAUSE NOTICES F.NO.DGG/NZ/INV/ME/79/2023/26098 DATED 29.09.2023 AND BEARING NO.JCCT(VIG)ACCT(Vig)-01/73- 74/2023-24 DATED 29.09.2023 ISSUED BY RESPONDENT NO.3 AND RESPONDENT NO.6 IN FORM GST DRC-01 ENCLOSED AT ANNEXURE-A AND ANNEXURE-B, RESPECTIVELY. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “a) Issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ or order or direction under Article 226 of the Constitution of India quashing the impugned Show Cause Notices, - 3 - NC: 2025:KHC:14433 WP No. 24303 of 2023 F.No.DGGI/NZ/INV/ME/79/2023/26098 dated 29.09.2023 and bearing No.JCCT(VIG)ACCT(Vig)-01/73-74/2023-24 dated 29.09.2023 issued by the Respondent No.3 and Respondent No.6 in FORM GST DRC-01 enclosed at Annexure-A and Annexure-B respectively; b) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned Show Cause Notice at Annexure – B dated 29.09.2023 issued by respondent No.6 – State Revenue in order to point out that even though proceedings have been initiated by respondent No.4 in September 2022, respondent No.6 – State authorities have initiated proceedings vide impugned Show Cause Notice at Annexure – B, which is barred under Section 6(2)(b) of the KGST Act and consequently, the same deserves to be quashed in the light of the judgment of the this Court in the M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024. - 4 - NC: 2025:KHC:14433 WP No. 24303 of 2023 4. It is also submitted that the valuation for the purpose of payment of taxes plus interest is covered by Circular No.210/4/2024-GST dated 26.06.2024 and the decision of the Delhi High Court in the case of Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court. It is therefore submitted that the petition may be allowed and disposed of accordingly. 5. It is further submitted that the respondents may be directed to pass separate adjudication orders for all the tax-periods under dispute so as to enable the petitioner to avail the benefit of Amnesty Scheme under Section 128A of the CGST Act. 6. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 7. A perusal of the material on record will indicate that it is an undisputed fact that in September 2022, respondent No.4 had initiated proceedings / intimation under Section 70 of the CGST Act by issuing letter on 21.09.2022, which is followed by the Show Cause Notices dated 29.09.2023. Meanwhile, despite having initiated proceedings on 21.09.2022, respondent No.6 – State - 5 - NC: 2025:KHC:14433 WP No. 24303 of 2023 authorities have issued the impugned Show Cause Notice at Annexure – B. In this context, it is pertinent to note that the said issue is answered by this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024, wherein it is held as under: “9. A perusal of the material on record and the submissions made by both sides will clearly indicate that prior to the State GST Authorities issuing the impugned Show Cause Notices at Annexures – A, A1, A2 is concerned, the Central GST Authorities had already initiated proceedings as against the petitioner and consequently, in the light of Section 6(2)(b) of the KGST Act, 2017 which contemplates a complete bar / embargo on the State GST Authorities to initiate proceedings in a situation where the Central GST Authorities had already initiated proceedings as against the petitioner in respect of the same subject matter. I am of the considered view that the impugned Show Cause Notices at Annexures – A, A1 and A2 are clearly illegal, arbitrary and without jurisdiction or authority of law and contrary to the aforesaid statutory provisions and the same deserve to be quashed.” As held in the aforesaid judgment, in view of Section 6(2)(b) of the CGST Act, Annexure – Bdeserve to be quashed. 8. Insofar as the valuation regarding payment of tax and interests are concerned, in view of Circular No.210/4/2024-GST dated 26.06.2024 even this issue would necessarily have to be decided by respondent No.4 in accordance with law and the decision of Delhi High Court in Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court. - 6 - NC: 2025:KHC:14433 WP No. 24303 of 2023 9. Insofar as the contention of the learned counsel for the petitioner that separate adjudication orders are to be passed for all the tax periods are concerned, respondent No.4 is directed to pass separate adjudication orders for all the tax periods under dispute so as to enable the petitioner to avail the benefit of Amnesty scheme under Section 128A of the CGST Act. 10. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Show Cause Notice at Annexure – B dated 29.09.2023 issued by respondent No.6 is hereby quashed. (iii) Petitioner is relegated to the stage of filing reply to the Show Cause Notice at Annexure – A dated 29.09.2023 before respondent No.4. (iv) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before respondent No.4, who shall consider the same and pass appropriate orders in accordance with law bearing in mind the judgment - 7 - NC: 2025:KHC:14433 WP No. 24303 of 2023 of this Court in M/s. Toyota Kirloskar Motor Pvt. Ltd. Vs. Union of India and others – W.P.No.22952/2023 dated 21.08.2024; thedecision of Delhi High Court in Thales India Private Limited Vs. Additional Commissioner of CGST, Audit – II, Delhi & Another – 2025 (2) TMI 245 – Delhi High Court and Circular No.210/4/2024-GST dated 26.06.2024. (v) All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. (vi) Liberty is reserved in favour of the petitioner to seek the benefit of Amnesty scheme under Section 128A of the CGST Act after respondent No.4 passes separate adjudication orders for all the tax periods under dispute. If such a request for availing Amnesty Scheme is made by the petitioner, the respondent No.4 shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV