Karnataka High Court

M/S Trelleborg India Private Limited vs State Of Karnataka on 30 July, 2024

Author: S.R.Krishna Kumar

Bench: S.R.Krishna Kumar

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                                                              NC: 2024:KHC:30123
                                                         WP No. 20264 of 2024




                          IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                               DATED THIS THE 30TH DAY OF JULY, 2024

                                             BEFORE
                            THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
                              WRIT PETITION NO. 20264 OF 2024 (T-RES)
                   BETWEEN:

                        M/S. TRELLEBORG INDIA PRIVATE LIMITED,
                        (FORMERLY NAMED TRELLEBORG INDUSTRIAL
                        PRODUCTS INDIA PRIVATE LIMITED),
                        A COMPANY UNDER THE COMPANIES
                        ACT (1), 1956, HAVING ITS REGISTERED
                        OFFICE AT 22/9, BERETANA AGRAHARA,
                        HOSUR MAIN ROAD, BANGALORE - 560 100.
                        AND REPRESENTED BY ITS FINANCE DIRECTOR
                        MR. ANAND RANGANATHAN.
                                                               ...PETITIONER
                   (BY SRI. PRASAD V. PARANJAPE, ADVOCATE AND
                      SRI. BHARATH JANARTHANAN, ADVOCATE)

                   AND:

Digitally signed   1.   STATE OF KARNATAKA,
by YAMUNA K
L                       REPRESENTED BY ITS CHIEF SECRETARY
Location: High          TO THE GOVERNMENT, VIDHANA SOUDHA,
Court of                BENGALURU - 560 001, KARNATAKA.
Karnataka
                   2.   COMMISSIONER OF COMMERCIAL TAXES,
                        VANIJYA THERIGE KARYALAYA-1,
                        1ST FLOOR, GANDHINAGAR,
                        BENGALURU - 560 009, KARNATAKA.

                   3.   COMMERCIAL TAX OFFICER,
                        COMMERCIAL TAXES DEPARTMENT,
                        LGSTO-025, DGSTO-04, TTMC BUILDING,
                        BMTC 6TH FLOOR, 80 FT. ROAD,
                                    -2-
                                                   NC: 2024:KHC:30123
                                               WP No. 20264 of 2024




     KORAMANGALA, BANGALORE - 560 095.

4.   DEPUTY COMMISSIONER OF COMMERCIAL TAXES,
     COMMERCIAL TAXES DEPARTMENT,
     TAXES (AUDIT)-4.1, A BLOCK,
     4TH FLOOR, 404, KORAMANGALA,
     BANGALORE - 560 095.
                                       ...RESPONDENTS
(BY SRI. HEMA KUMAR, AGA)

      THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE
CONSTITUTION OF INDIA PRAYING TO DIRECTION UNDER
ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE
RECORDS PERTAINING TO THE PETITIONERS CASE AND AFTER
GOING INTO THE VALIDITY AND LEGALITY THEREOF, TO QUASH
AND SET ASIDE THE IMPUGNED NOTICE IN FORM GST DRC-01
DATED 05.07.2024 BEARING REFERENCE NO. ZD290724014213M
ALONG WITH SHOW CAUSE NOTICE IN FORM GST DRC-01
BEARING      NO.   CTO(P)/LGSTO-025/ORC-01/2024-25  DATED
04.07.2024 ISSUED BY R-3 HEREIN PERTAINING TO TAX PERIOD
FROM APRIL 2020 TO MARCH 2021 AND PRODUCED AS ANNX-A
COLLY AND ETC.,

      THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM:     HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
                             ORAL ORDER

In this petition, petitioner is seeking for the following reliefs:

"(i) issue a Writ of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof, to quash and set aside the impugned Notice in Form GST DRC-01 dated 05.07.2024 bearing Reference No. ZD290724014213M, along with show

NC: 2024:KHC:30123

cause notice in Form GST DRC-01 bearing No. CTO(P)/ LGSTO-025/ DRC-01/ 2024-

25 dated 04.07.2024 issued by Respondent No. 3 herein pertaining to tax period from April 2020 to March 2021 and produced as "ANNEXURE 'A'-COLLY";

(ii) issue a Writ of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality thereof, to quash and set aside the impugned Notice in Form GST DRC-01A dated 10.10.2023 bearing Reference No. ZD291023010891P, along with annexure thereto bearing No. DGSTO-4/DCCT(A)- 4.1/2023-24 dated 10.10.2023 issued by Respondent No. 4 herein pertaining to tax period from April 2020 to March 2021 and produced as "ANNEXURE 'B";

(iii) issue a Writ of Mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India, directing the Respondents to forthwith withdraw and refrain from taking any steps or proceedings in pursuance or in furtherance of, the impugned Notice in Form GST DRC-01 dated 05.07.2024 bearing Reference No. ZD290724014213M, along with show cause notice in Form GST DRC-01 bearing No. CTO(P)/ LGSTO-025/ DRC-01/ 2024- 25 dated 04.07.2024 issued by Respondent No. 3 herein pertaining to tax period from April 2020 to March 2021 and produced as "ANNEXURE 'A'-COLLY"

impugned Notice in Form GST DRC-01A dated 10.10.2023 bearing Reference No. ZD291023010891P, along with annexure

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thereto bearing No. DGSTO-4/DCCT(A)- 4.1/2023-24 dated 10.10.2023 issued by Respondent No. 4 herein pertaining to tax period from April 2020 to March 2021 and produced as "ANNEXURE 'B' and hold that Respondents No. 3 and 4 cannot issue a notice to an entity that has ceased to exist as a result of an amalgamation; and / or

(iv) issue any other writ, order or direction as deemed fit and appropriate by this Hon'ble Court."

2. Heard learned counsel for the petitioner and learned AGA

for the respondents and perused the material on record.

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 order at Annexure-Q, dated 02.07.2024 passed in

the case of M/S.TRELLEBORG INDIA PRIVATE LIMITED Vs.

STATE OF KARNATAKA AND OTHERS in WP.No.15620/2024

and connected matters filed by the petitioner and other

identically/similarly situated assesses, in relation to the

Assessment Year 2017-18, wherein the claim of the petitioner was

upheld by this Court on the ground that the impugned

notices/endorsement issued to non-existent entity was without

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jurisdiction or authority of law and the same were quashed by this

Court. It is submitted that the present petition in relation to the

subsequent year 2020-21 also deserves to be quashed and the

present petition also deserves to be disposed of in terms of the

aforesaid order.

4. Per contra, learned AGA does not dispute that in relation

to the previous Assessment Year and in respect of the very same

petitioner herein, this Court quashed the notices/endorsement

issued to the petitioner.

5. As rightly contended by the learned counsel for the

petitioner in WP.No.15620/2024 and connected matters, dated

02.07.2024 filed by the petitioner herein and in connected matters,

this Court has held as under.

"9. Such of the facts as referred to above are not in dispute. In light of the legal position emanated from the decision of Apex Court in Principal Commissioner of Income Tax, New Delhi v. Maruti Suzuki (India) Limited reported in (2020) 18 SCC 331, it is clear that once an amalgamating entity ceases to exist upon approved Scheme of Amalgamation, the question of continuing the proceedings as regards the non-existent Company cannot be permitted.

This position has been reiterated in the subsequent judgments of this Court

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including the order of this Court dated 04.06.2024 passed in W.P.No.14156/2024 [M/s.Rajdisle Private Limited v. The Income Tax Officer and Another].

10. Admittedly, as the notices/endorsement at Annexure-'A' are issued to a non-existent entity, the proceedings sought to be initiated by virtue of show cause notices/endorsement at Annexure-'A' in all the petitions are set aside. It is needless to state that the respondents are at liberty to pursue the proceedings against the appropriate entity regarding the subject matter of notices at Annexure-'A' as is permissible in law, as the petitions are disposed off on the premise that no proceedings could have been initiated against a non-existent Company. All contentions are kept open."

6. It is the matter of record that the said petition was in

relation to the Assessment years 2017-18, 2018-19 and 2019-20

and the instant petition being related to the subsequent year 2020-

21, the present petition also deserves to be allowed and disposed

of in terms of the aforesaid judgment of this Court.

7. In the result, I pass the following:

ORDER

i) The petition is hereby allowed and disposed of in

terms of the aforesaid judgment dated 02.07.2024

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passed by this Court in the case of

M/S.TRELLEBORG INDIA PRIVATE LIMITED

Vs. STATE OF KARNATAKA AND OTHERS in

WP.No.15620/2024 and connected matters.