- 1 - HC-KAR NC: 2025:KHC:54065 WP No. 36327 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 36327 OF 2019 (T-RES) BETWEEN: M/S. CONSOLIDATED CONSTRUCTION CONSORTIUM LTD NO.173, 3RD MAIN ROAD, 4TH PHASE, DOLLARS LAYOUT, J P NAGAR, BANGALORE – 560 078 REP. BY B. KISHOR KUMAR REGIONAL MANAGER. …PETITIONER (BY SRI. SIDDHARTH BAVLE, SRI. KAARTHIKEYAN D. & SRI. RAVI RAGHAVAN, ADVOCATES) AND: 1. UNION OF INDIA REP. BY ITS UNDER SECRETARY MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI – 110 001 2. STATE OF KARNATAKA THROUGH ITS FINANCIAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE – 560 001. 3. COMMISSIONER OF CENTRAL TAX BENGALURU SOUTH COMMISSIONERATE, BANGALORE – 560 070. 4. ASSISTANT COMMISSIONER OF CENTRAL TAX DIVISION-6, BANGALORE SOUTH COMMISSIONERATE, 2ND FLOOR, BMTC BUILDING, KANAKAPURA ROAD, BANASHANKARI, BANGALORE – 560 070. …RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE FOR R1, R3 & R4; SRI K. HEMA KUMAR, AGA FOR R2) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:54065 WP No. 36327 of 2019 THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT TO THE R-4 TO WITHDRAW THE IMPUGNED LETTER NO,.O.C.NO.1363/2019 DTD.3.4.2019 AND O.C DTD.16.4.2019 ENCLOSED AT ANEXURE-A1 AND A2 RESPECTIVELY AND ETC., 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 Mandamus or any other appropriate writ or order or direction to the Respondent No. 4 to withdraw the impugned letters No. O.C. No. 1363/2019 dated 03.04.2019 and O.C. No. 79/2019-ASD6/1190/2019 16.04.2019 enclosed at Annexure-Al and A2 respectively; b) hold that interest under Section 50 during the impugned period is payable only on the tax liability net of the input tax credit; c) issue a Writ of Mandamus or a Writ in the nature of Mandamus or any other Writ, order or direction to the Respondent No. 4 to follow due process of law before initiating coercive action for recovery of interest; d) any other writ, order or direction as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case and allow this petition with cost.” - 3 - HC-KAR NC: 2025:KHC:54065 WP No. 36327 of 2019 2. Heard learned counsel for the petitioner and learned counsel for the respondent Nos.1, 3 and 4 and learned AGA for respondent No.2 and perused the material on record. 3. Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of this Court in the case of M/s. Bangalore International Airport Limited Vs. Union of India and Ors– W.P.No.6502/2020 dated 13.11.2025, wherein it was held as under: “14. Insofar as the interest demanded on the Input Tax Credit portion by the respondents is concerned, having regard to the fact that the amount towards tax by way of Electronic Credit Ledger was available in the Electronic Credit Ledger of the petitioner, in view of the proviso to Section 50 of the CGST Act, which restricts the liability of the petitioner to pay interest only in relation to delayed payment of tax from the cash ledger, it cannot be said that the petitioner is liable to pay interest on tax towards input tax credit portion, as held by the Madras High Court and Gujarat High Court in the aforementioned judgments. 15. Under these circumstances, I am of the considered opinion that the impugned notice dated 17.03.2020 vide Annexure ‘A’ is illegal, arbitrary, and - 4 - HC-KAR NC: 2025:KHC:54065 WP No. 36327 of 2019 without jurisdiction or authority of law, and contrary to the provisions contained in Sections 49 and 50 of the CGST Act, and the same deserves to be quashed. 16. In the result, I pass the following: ORDER i) The writ petition is hereby allowed. ii) The impugned notice vide Annexure ‘A’ dated 17.03.2020 issued by the respondents to the petitioner is hereby quashed.” 5. Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of this Court in M/s. Bangalore International Airport Limited’s case supra. 6. In the result, I pass the following: ORDER i) The petition is hereby allowed and disposed of in terms of M/s. Bangalore International Airport Limited Vs. Union of India and Ors– W.P.No.6502/2020 dated 13.11.2025. - 5 - HC-KAR NC: 2025:KHC:54065 WP No. 36327 of 2019 ii) The impugned letters dated 16.04.2019 and 03.04.2019 at Annexures-A1 and A2 respectively passed by respondent No.4 are hereby quashed. SD/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 26