IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26^TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 22949 OF 2022 (T-RES)

BETWEEN:

UNION OF INDIA REPRESENTED BY SECRETARY DEPARTMENT OF SPACE THROUGH LIQUID PROPULSION SYSTEM CENTRE VALIAMALA THIRUVANANTHAPURAM KERALA – 695 547 REPRESENTED BY ADMINISTRAION PERSONAL AND GENERAL …PETITIONER (BY SRI. KUMAR M. N., ADVOCATE)

AND:

1. STATE OF KARNATAKA REPRESENTED BY ADDITIONAL CHIEF SECRETARY FINANCE DEPARTMENT, VIDHANA SOUDA, Digitally signed DR. AMBEDKAR VEEDI, by CHANDANA BANGALORE – 560 001 B M Location: High

2. JOINT COMMISSIONER OF COMMERCIAL TAXES Court of Karnataka DGSTO – 2, NO. 502, 5^TH FLOOR, A BLOCK VTK – 2, RAJENDRA NAGAR KORAMANGALA, BANGALORE – 560 047

3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LOCAL VAT OFFICE, NO.45, B D A COMPLEX, INDIRANAGAR BANGALORE - 560 038

4. COMMERCIAL TAX OFFICER OFFICE OF THE COMMERCIAL TAX OFFICER, HOSUR ROAD, CHECK POST (INWARD), ATTIBELE, BENGALURU – 562 107 …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA)

THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT, THE PETITIONER IS NOT INTO BUSINESS AS DEFINED IN SECTION 2(2- B) OF THE KARNATAKA TAX ON ENTRY OF GOODS ACT,1979 AND NOT A DEALER U/S 2(4) OF THE KARNATAKA TAX ON ENTRY OF GOODS ACT, 1979 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 for the following reliefs:-

“a. Declare that, the Petitioner is not into business as defined in sections 2(2-b) of the Karnataka Tax on Entry of Goods Act, 1979 and not a dealer under section 2(4) of the Karnataka Tax on Entry of Goods Act, 1979.

b. Consequently, issue a Writ of Certiorari quashing the Endorsement demanding Entry Tax amounting to Rs.46,70,210/- issued by the Commercial Tax Officer, Hosur Road, Check Post(in), Attibele bearing No.CTO/HRCP(IN)/SM/GCE 432/08-09 dated 27.05.2008 (Annexure-C) and Endorsement dated 10.07.2008 issued by the Assistant Commissioner of Commercial Taxes vide No.ACCT/LVO-

045/T.No.107/2008-09, (Annexure-H);

c. Consequently, issue a Writ of Mandamus directing the Respondents to refund the tax amount which was paid on 14.06.2008 vide Annexure-F, release Order bearing No.CTO/HRCP(IN)/SM/GCE 432/08-09 with interest at the rate of 16% per Annum from the date of payment to till date of repayment.

d. Pass such other order/s as deemed fit by this Hon’ble Court in the facts and Circumstances of the case, interest of justice.”

2. Heard learned counsel for the petitioner and learned AGA for the respondent and perused the material on record.

3. A perusal of the material on record will indicate that the petitioner is a constituent of Government of India, Department of Space, which had entered into a contract with M/s. ESAB AB, Sweden and placed a purchase order in the year 2008 and when the said equipment and conveyance were intercepted by the, Commercial Tax Officer, Hosur Road, Check Post (Inward), Attibele, Bengaluru-562 107, for the purpose of release of said equipment, goods and conveyance, the petitioner paid Rs.45,33,525/- under protest vide demand draft bearing No.034103 dated 13.06.2008. It is contended that subsequently, when the petitioner requested the said amount to be refunded on the ground that it is not a dealer within the Section 2(4) of the Karnataka Tax on Entry of Goods Act, 1979 (for short “the KTEG Act”), respondent No.3 issued the impugned endorsement dated 09.07.2008 rejecting the claim of the petitioner on the ground that the petitioner is a deemed dealer under the said Act and since it was liable to get itself registered and pay taxes, the claim of the petitioner cannot be entertained and as such, the petitioner is before this Court by way of the present petition.

4. Learned AGA submits that there is no merit in the petition and that the same is liable to be dismissed. He further submits that in the ab