IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 8^TH DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO.35295 OF 2025 (T-RES)

BETWEEN:

M/S INDIAN MACHINE TOOLS

(REPRESENTED BY ITS PROPRIETOR

SHRI. ARCOT RANGANATHAN KRISHNAPRASAD

S/O A D RANGANATHAN AGED ABOUT 59 YEARS)

NO.33, NADAKERAPPA INDI ESTATE,

GROUND FLOOR, HEGGANAHALLI CROSS,

2^ND STAGE, PEENYA

BANGALORE – 560 091.

…PETITIONER

(BY SRI. B.G. CHIDANANDA URS, ADVOCATE)

AND:

1. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES

(AUDIT) 2-6, DGSTO-02, NO.642, PIONEER PLAZA,

RAJA RAJESHWARI NAGAR,

BANGALORE – 560 098.

2. THE BRANCH MANAGER,

VIJAYA BANK (BANK OF BARODA) NO.35,

Digitally 1^ST FLOOR, TAMBU CHETTY ROAD

signed by COX TOWN, BANGALORE – 560 005.

MADHURI S …RESPONDENTS

Location: High (BY SRI. K. HEMA KUMAR, AGA FOR R-1;

Court of NOTICE TO R2 IS D/W)

Karnataka

THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE

CONSTITUITON OF INDIA PRAYING TO QUASH THE NOTICE IN NO.ACCT(AUDIT)-2.6/T.125/2025-26 IN FORM VAT-350 DATED 10.6.2025 ISSUED BY RESPONDENT NO.1 DEMANDING TOTAL AMOUNT OF RS.17,95,669/- FOR THE FINANCIAL YEAR 2009-10 WHICH IS HEREWITH ENCLOSED AS ANNEXURE – D AS ILLEGAL, WITHOUT THE AUTHORITY

OF LAW 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 seeks the following reliefs:

“ (a) Issue a writ of certiorari or such other writ, order or direction as this Hon’ble Court may deem fit to quash the Notice in No.ACCT(Audit)-2.6/T.125/2025-26 in FORM VAT-350 dated 10.06.2025 issued by Respondent No.1 demanding total amount of Rs.17,95,669/- for the financial year 2009-10 which is herewith enclosed as Annexure-“D” as illegal without the authority of law;

(b) Issue a writ of certiorari, or such other writ, order or direction as this Hon’ble Court may deem fit to quash the Garnishee Notice under Section 45 of the KVAT Act, 2003 in No.ACCT (AUDIT) 2.6/T.No.299/2025-26 dated 12.09.2025 to the Manager, Vijaya Bank for recovery of Rs.17,95,669/- which is herewith enclosed as Annexure “E”.

(c) Pass such other order, direction or writ as the Hon’ble High Court may deem fit and appropriate in the facts and circumstances of the case, in the interest of justice and equity.”

2. Heard learned counsel for the petitioner and learned AGA for respondent No.1 and perused the material on record. For the order proposed, notice to respondent No.2 is dispensed with.

3. A perusal of the material on record will indicate that respondent No.1 passed a re-assessment order under Section 39(1) of he KVAT Act on 17.03.2012 for the tax period 01.04.2009 to 31.03.2010. Subsequently, respondents initiated recovery proceedings vide Annexures – D and E dated 10.06.2025 and 12.09.2025, aggrieved by which the petitioner is before this Court by way of the present petition.

4. In this context, it is pertinent to note that Section 49 of the KVAT Act prescribes maximum period of 12 years to initiate recovery proceedings from the end of the relevant tax period. In the instant case, recovery proceedings having been initiated beyond the maximum statutory period of 12 years from the end of tax period, which expired on 31.03.2022, the impugned recovery notices are hopelessly barred by limitation and the same deserves to be quashed.

5. In the result, I pass the following:

ORDER (i) The petition is hereby allowed (ii) The impugned notices at Annexures – D and E dated 10.06.2025 and 12.09.2025, respectively, issued by respondent No.1 are hereby quashed.

(iii) All other contentions urged by the petitioner are kept open and no opinion is expressed on the same.

(iv) The entire amount collected by respondent No.1 – Assistant Commissioner of Commercial Taxes, pursuant to the impugned recovery notices at Annexures – D and E are hereby directed to be released / refunded back to the petitioner within a period of six weeks from the date of receipt of a copy of this order.

Sd/-

(S.R.KRISHNA KUMAR)

JUDG