2025 (12) TMI 1440

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.... passed by the 1st Respondent under Section 73 of the Karnataka Goods and Services Tax Act, 2017 for the tax periods July 2017 to March 2018 (Annexure 'A-1'); (II) Quashing the impugned summary of the order bearing DCCT(Audit)-5.2/288419/GST/2023-24 25.04.2023 issued by the 1st Respondent under Section 73 of the Karnataka Goods and Services Tax Act, 2017 read with Rule 142(5) of the Karnataka Goods and Services Tax Rules, 2017 for the tax periods July 2017 to March 2018 (Annexure 'A-2'); (iii) Quashing the impugned notice dated 02.06.2023 bearing No. DGSTO-5/DCCT5.2/288419/2023-24 issued by the 1st Respondent under S.78 of the Karnataka Goods and Services Tax Rules, 2017 for the tax periods July 2017 to March 2018 (Annexur....

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.... the conclusion that the petitioner had not submitted any authorized invoices duly endorsed by the SEZ Commissionerate as required under Rule 30(4) of the SEZ Rules, 2006 and the Circular dated 12.09.2019 which specified that DTA Services Procurement Firm was effective from 2018 to October 2019 which specified that endorsement that duty authorises supplies to the SEZ has to be found on the invoices and the same having not been produced, the petitioner would be liable to pay tax and interest as confirmed by in audit observation No. 1 in the impugned order. It is submitted that Rule 30(4) of SEZ Rules, 2006 were amended with effect from 21.09.2018 mandating production of authorized / certified invoices which was prospective in operation and n....

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....emedy by way of an appeal could not come in the way of this Court exercising its jurisdiction under Article 226 of the Constitution of India. 7. I have given my anxious consideration to the rival submissions and perused the material on record. 8. Before averting to the rival submissions, it would be necessary to extract Rule 30(4) as amended vide Notification dated 19.09.2018 which came into force on 21.09.2018 which reads as under; "(4) A copy of the document referred to in sub-rule (1) or copy of Bill of Export, as the case may be, with an endorsement by the authorised officer that goods have been admitted in full into the Special Economic Zone shall be treated as proof of export and a copy with such endorsement shall also ....

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....erative and not retrospective in nature, application or operation and would not apply to the tax period prior to 21.09.2018. 11. In the instant case it is an undisputed fact borne out from the material on record that the impugned proceedings pertain to the tax period July 2017 to March 2018 at a point in time, when neither the said notification amended Rule 30(4) nor the aforesaid Circular were in force and consequently, the first respondent clearly fell in error in applying the said Notification and Circular for the purpose of confirming the demand as against the petitioner, which is clearly contrary to the said Rules and the material on record, apart from being without jurisdiction or authority of law, warranting interference by this C....