- 1 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 8940 OF 2025 (T-RES) BETWEEN: BORGWARNER INDIA TECHNICAL CENTER PRIVATE LIMITED, PLOT NO. 18 AND 19a, 19b, PRIMECO UNION CITY, 901, 9, G-01, WHITEFIELD MAIN ROAD, BENGALURU 560 067. REP. BY ITS DIRECTOR, DWARAKANATH VENKATESH SIMILI. …PETITIONER (BY SRI N MANOHAR, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, EAST DIVISION - 7, OLD AIRPORT ROAD, DOMMALURU, BENGALURU 560 071. 2. UNION OF INDIA, (REP. BY ITS SECRETARY) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI-110 001. …RESPONDENTS (BY SRI UNNIKRISHNAN M, ADVOCATE FOR R-1; SRI MADANAN PILLAI, ADVOCATE FOR R-2) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO A). ISSUE A WRIT OF DECLARATION OR ANY OTHER APPROPRIATE WRIT ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, DECLARING RULE 96(10) OF THE CENTRAL GOODS AND SERVICE TAX RULES, 2017 AS ULTRA VIRES SECTIONS 16 AND 22 OF THE INTEGRATED GOODS AND SERVICE TAX ACT, 2017 AND IN ANY VIEW ARBITRARY AND VIOLATIVE OF ARTICLE 14 OF THE CONSTITUTION OF INDIA ETC. Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 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 1. In this petition, the petitioner seeks the following reliefs: "WHEREFORE, the Petitioner prays that this Honorable court be pleased to: a). Issue a writ of Declaration or any other appropriate Writ Order or Direction under Article 226 of the Constitution of India, declaring Rule 96(10) of the Central Goods and Service Tax Rules, 2017 as ultra vires Sections 16 and 22 of the integrated Goods and Service Tax Act, 2017 and in any view arbitrary and violative of Article 14 of the Constitution of India. b). Issue a WRIT OF CERTIORARI or any other appropriate writ, order or direction under Article 226 of the Constitution of India, calling for records on the files of the 1st Respondent herein in adjudication order in Form RFD 06-188/2025-26/ED7 bearing reference No. AA2908240740495 dated 14.11.2024 and quash the same in so far as it relates to the rejection of a refund of Rs.3,08,78,921 as mentioned in Paragraph 19 of the said impugned order dated 14.11.2024 (Annexure-A). c) Issue a Writ of Mandamus or any other appropriate Writ Order or Direction under Article 226 of the Constitution of India, directing the 1st Respondent herein to refund a sum of Rs.3,08,78,921, as sought for by the Petitioner, in their refund application in Form RFD 01 dated 27.08.2024, (Annexure-B) - 3 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 being the integrated goods and service tax, paid by the Petitioners and claimed as refund under Section 16 of the Integrated Goods and Service Tax Act, 2017. d) Issue a Writ of Mandamus or any other appropriate Writ Order or Direction under Article 226 of the Constitution of India, directing the 1st Respondent herein to re-credit the integrated tax of Rs.3,08,78,921 as prayed for by the Petitioner in their application dated 05.02.2025 (Annexure-E). e) Grant or pass such further or other orders as it may deem fit and proper in the facts and circumstances of this case and render justice. 2. Heard learned Counsel for the petitioner and learned counsels for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the order of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order. - 4 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 4. 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. 5. As rightly contended by the learned counsel for the petitioner, the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, the operative portion of which reads as under: "11. In view of the aforesaid facts and circumstances and striking down of Rule 96(10) of the CGST Act and the judgments of the Kerala High Court and other High Courts including Bombay High Court in the petitioner’s own case coupled with the fact that respondents themselves have omitted Rule 96(10) vide Notification dated 08.10.2024, I am of the considered opinion that the impugned Show Cause Notice and all further proceedings pursuant thereto deserves to be quashed. 12. In the result, I pass the following: ORDER (i) The petition is hereby allowed. - 5 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 (ii) The impugned Show Cause Notice at Annexure – R dated 07.10.2020 issued by respondent No.5 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund IGST amounting to Rs.75,55,123/- along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order.” 6. The aforesaid order is applicable to the facts and circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of this Court in M/s Hikal Limited’s case supra. 7. In the result, I pass the following: ORDER (i) The petition is allowed and disposed of in terms of the decision of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025. (ii) The impugned Show Cause Notice at Annexure – C dated 10.10.2024 issued by respondent No.1 and - 6 - HC-KAR NC: 2025:KHC:54230 WP No. 8940 of 2025 all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund the amount of Rs. 3,08,78,921/-, payable to the petitioner along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE tsn* List No.: 2 Sl No.: 35