Karnataka High Court
M/S Reward 360 Services Pvt Ltd vs The Deputy Commissioner on 19 February, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC:6856
WP No. 7502 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 19TH DAY OF FEBRUARY, 2024
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION No. 7502 OF 2023 (T-RES)
BETWEEN:
1. M/S. REWARD 360 SERVICES PVT. LTD.,
FORTUNE SUMMIT IT PARK,
290/281/276/243/244,
6TH FLOOR, SECTOR 6,
HSR LAYOUT, ROOPENA AGRAHARA,
BANGALORE-560068.
REPRESENTED BY ITS
AUTHORIZED SIGNATORY/DIRECTOR,
MR. ROHIT KUMAR PANDEY,
DIRECTOR,
B3 CLIVIVA ROYALE HABITAT APARTMENT,
HSR LAYOUT,
BENGALURU-560102.
...PETITIONER
Digitally (BY SRI PRASHANTH SABARISH SHIVADASS., ADVOCATE)
signed by
VINUTHA B S
AND:
Location:
High Court of
Karnataka 1. THE DEPUTY COMMISSIONER,
COMMERCIAL TAXES (AUDIT)-1.5,
DGSTO-1, 5TH FLOOR,
TRAFFIC TRANSIT MANAGEMENT CENTRE,
BMTC BUILDING, YESHWANTHAPUR,
BANGALORE-560022.
...RESPONDENT
(BY SRI SHAMANTH NAIK, HCGP)
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NC: 2024:KHC:6856
WP No. 7502 of 2023
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE
IMPUGNED ADJUDICATION ORDER DATED 27.12.2022 AND
IMPUGNED RECTIFICATION ORDER DATED 21.03.2023 PASSED BY
R-1 ANNEXED AT ANNEXURE-A AND ANNEXURE-B RESPECTIVELY TO
THE EXTENT IT RELATES TO TAXABILITY OF VOUCHERS.
THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
In this petition, petitioner seeks quashing of the
impugned adjudication order dated 27.12.2022 [Annexure-A]
and the impugned rectification order 21.03.2023 [Annexure-B]
insofar as they relate to taxability of vouchers traded by the
petitioner is concerned and for other reliefs.
2. Heard learned counsel for the petitioner and learned
counsel for the respondent.
Perused the records.
3. In addition to reiterating various contentions urged in the
petition and referring to the material on record, learned counsel
for the petitioner invited my attention to the judgment of the
Division Bench of this Court in the case of M/s. Premier Sales
Promotion Pvt. Limited vs. The Union of India and others
in W.P.No.5569/2022 [T-RES], dated 16.01.2023 [2023-
NC: 2024:KHC:6856
VIL-67-KAR], in order to contend that the issue regarding
taxability of vouchers traded by the petitioner is completely
covered by the ratio laid down in the said judgment of this
Court wherein, the order of the Advance Ruling Authority
holding that the voucher fall under the category of goods at
18% was quashed by this Court holding that the vouchers
traded by any person including the petitioner do not fall under
the category of goods and service and they are exempted from
levy of tax. The said judgment of the Division Bench of this
Court in M/s. Premier Sales Promotion Pvt. Limited
(supra) is confirmed by the Hon'ble Supreme Court in SLP
(Civil) Diary No.47998/2023. It is therefore submitted that the
impugned adjudication order and the rectification order insofar
as the vouchers traded by the petitioner deserves to be
quashed.
4. Per contra, learned High Court Government Pleader does
not dispute that the issue regarding taxability of vouchers
traded by the petitioner was the subject matter of dispute in
M/s. Premier Sales Promotion Pvt. Limited (supra) and the
same has been held in favour of the assessee.
NC: 2024:KHC:6856
5. In view of the facts and circumstances and the
undisputed fact that the question/issue as regards taxability of
the vouchers traded by the petitioner in relation to the
impugned adjudication order and the rectification order have
been set aside by the Division Bench of this Court, I am of the
considered opinion that the present petition deserves to be
allowed in terms of the said judgment.
6. Hence, the following:
ORDER
i) Writ petition is allowed and disposed off in terms of
the judgment in the case of M/s. Premier Sales
Promotion Pvt. Limited (supra).
ii) The impugned adjudication order dated 27.12.2022
[Annexure-A] and the impugned rectification order
21.03.2023 [Annexure-B] insofar as they relate to
taxability of vouchers traded by the petitioner are
hereby quashed.
Sd/-
JUDGE
MV
