Mphasis Limited vs The Principal Commissioner Of Central ... on 13 July, 2020

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Karnataka High Court

Mphasis Limited vs The Principal Commissioner Of Central ... on 13 July, 2020

Bench: P.S. Dinesh Kumar

                             1



IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 13TH DAY OF JULY, 2020

                         BEFORE

     THE HON'BLE MR.JUSTICE P.S. DINESH KUMAR

        WRIT PETITION No.8252 OF 2020 (T-RES)

BETWEEN :

MPHASIS LIMITED
BAGMANE WORLD TECHNOLOGY CENTER
MARATHAHALLI RING ROAD
DODDENEKUNDI VILLAGE
MAHADEVAPURA
BENGALURU-560 016
REPRESENTED BY MR. ARIJIT GANGULY
AUTHORISED SIGNATORY
RESIDING AT D-1001, NCC URBAN
NAGARJUNA ASTER PARK
NEXT TO KMF MOTHER DAIRY
YELAHANKA NEW TOWN
BENGALURU-560 064                                 ...PETITIONER

(BY SHRI. PRASHANTH S. SHIVADASS, ADVOCATE)
[THROUGH VIDEO CONFERENCE]

AND :

1.    THE PRINCIPAL COMMISSIONER OF CENTRAL TAX
      MEMBER OF DESIGNATED COMMITTEE
      BENGALURU SOUTH COMMISSIONERATE
      CR BUILDING, QUEENS ROAD
      BENGALUR-560 001

2.    JOINT COMMISSIONER OF CENTRAL TAX
      MEMBER OF DESIGNATED COMMITTEE
      BENGALURU SOUTH COMMISSIONERATE
                               2



     CR BUILDING, QUEENS ROAD
     BENGALUR-560 001

3.   COMMISSIONER OF CENTRAL TAX
     BENGALURU SOUTH COMMISSIONERATE
     CR BUILDING, QUEENS ROAD
     BENGALUR-560 001

4.   UNION OF INDIA
     REPRESENTED BY
     JOINT SECRETARY
     MINISTRY OF FINANCE
     DEPARTMENT OF REVENUE
     CENTRAL BOARD OF INDIRECT TAXES
     AND CUSTOMS, ROOM NO.46
     NORTH BLOCK
     NEW DELHI-110 001                     ... RESPONDENTS

(BY SHRI. JEEVAN J. NEERALGI, ADVOCATE)
[THROUGH VIDEO CONFERENCE]

                            ....
     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER
DATED 13.03.2020 PASSED BY THE DESIGNATED COMMITTEE
REPRESENTED BY R-1 AND R-2 VIDE ANNEXURE-A PASSED U/S 127
OF THE FINANCE (NO.2) ACT, 2019 R/W RULE 6 OF THE SABKA
VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME RULES, 2019 IN
FORM NO.SVLDRS-3 AND ETC.

       THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
                                   3




                              ORDER

Petitioner is a Public Limited Company involved in development of software and providing man power services.

2. Petitioner filed an application under Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019. The designated Committee of Bangalore South Commissionerate has passed order on 13th March 2020 as per Annexure-A and called upon the petitioner to pay tax of Rs.36,54,269/-. Feeling aggrieved by the said order petitioner is before this Court.

3. Shri.Prashanth S. Shivdass, learned Senior Advocate for the petitioner submitted that petitioner has, in fact, paid excess tax. However, the Committee has not taken the same into consideration and again demanded tax amount as per Annexure-A. 4

4. Shri.Jeevan J. Neeralgi, learned Advocate for respondents, opposing the petition contended that petitioner has not placed the facts before the committee for consideration. He submitted that the opening balance and the closing balance mentioned by the petitioner do not tally. Therefore, the designated Committee has decided the matter based on available records.

5. I have carefully considered rival contentions and perused the records.

6. The principal contention of Shri. Shivdas is that petitioner has paid tax as per Annexure-F and the same has not been considered. The stand of the Revenue is that the order has been passed based on the available records and there is discrepancy with regard to the opening and closing balance. The resultant position is, the Revenue has demanded a tax of Rs.36.54 lakhs as per Annexure-A. In view of the disputed claims with regard to taking into account the tax claimed to have been paid by the 5 petitioner, in the opinion of this Court, it would be just and appropriate to direct the Committee to grant an opportunity of hearing to the petitioner and pass appropriate orders afresh. Hence, the following order:

(a) Order dated 13th March 2020 as per Annexure-A is set-aside;

(b) Matter is remitted as per Annexures - D and F to the Committee and the designated Committee shall issue notice, give an opportunity of personal hearing to the petitioner, consider the material on record and pass fresh orders in accordance with law; and

(c) It is made clear that petitioner shall get only one opportunity of being heard.

Petition is disposed of.

No costs.

Sd/-

JUDGE SPS

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