Case Note & Summary
The appellant, M/s. Ghodawat Industries (India) Pvt. Ltd., filed a writ petition before the learned Single Judge challenging an assessment order under the Karnataka Value Added Tax Act, 2003. The learned Single Judge initially granted interim relief on 01.04.2014, which was extended till further orders on 15.04.2014. However, on 22.05.2014, the learned Single Judge vacated the interim relief without affording an opportunity of hearing to the appellant. Aggrieved by this order, the appellant filed the present writ appeal under Section 4 of the Karnataka High Court Act, 1961. The Division Bench, after hearing the counsel for both sides, found that the order vacating interim relief was passed in violation of the principles of natural justice as the appellant was not heard before the order was made. Consequently, the Division Bench set aside the order dated 22.05.2014 and restored the interim relief granted on 01.04.2014 and extended on 15.04.2014. The writ petition was directed to be listed for hearing on merits before the appropriate Bench. The appeal was allowed accordingly.
Headnote
A) Constitutional Law - Writ Jurisdiction - Interim Relief - Restoration - The appellant challenged the order of the learned Single Judge vacating the interim relief granted earlier. The Division Bench held that the order vacating interim relief was passed without giving an opportunity of hearing to the appellant, thus violating principles of natural justice. The interim relief was restored and the writ petition was directed to be heard on merits. (Paras 1-5)
B) Taxation - Karnataka Value Added Tax Act, 2003 - Assessment - Natural Justice - The appellant had challenged the assessment order under the KVAT Act. The Division Bench found that the Single Judge's order vacating interim relief was passed without hearing the appellant, and therefore set aside that order and restored the interim relief. (Paras 1-5)
Issue of Consideration
Whether the learned Single Judge was justified in vacating the interim relief granted earlier in the writ petition without affording an opportunity of hearing to the appellant.
Final Decision
The Division Bench allowed the writ appeal, set aside the order dated 22.05.2014 passed by the learned Single Judge, and restored the interim relief granted on 01.04.2014 and extended on 15.04.2014. The writ petition was directed to be listed for hearing on merits before the appropriate Bench.
Law Points
- Principles of natural justice
- interim relief
- restoration of status quo ante
- Section 4 of Karnataka High Court Act
- 1961
Case Details
2014 LawText (KAR) (06) 19
Writ Appeal Nos.100432/2014 & 100433-435/2014 (T-EYT)
Dr. Justice K. Bhakthavatsala, Mr. Justice Pradeep D. Waingankar
Sri K.G. Raghavan, Senior Advocate for Sri Prashant F. Gowdar and Sri Veeresh Budihal, Advocates for appellant; Sri H. Kantharaja, Additional Advocate General for respondents
M/s. Ghodawat Industries (India) Pvt., Ltd.
Additional Chief Secretary and Principal Secretary to Government, Finance Department, Government of Karnataka; Commissioner of Commercial Taxes; Joint Commissioner of Commercial Taxes/DVO (Administration), Belgaum Division; Commercial Tax Officer (Audit)-3, Belgaum
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Nature of Litigation
Writ appeal against order of learned Single Judge vacating interim relief in a writ petition challenging assessment under Karnataka Value Added Tax Act, 2003.
Remedy Sought
Appellant sought setting aside of order dated 22.05.2014 vacating interim relief and restoration of interim relief granted on 01.04.2014 and extended on 15.04.2014.
Filing Reason
The learned Single Judge vacated the interim relief without affording an opportunity of hearing to the appellant, violating principles of natural justice.
Previous Decisions
Learned Single Judge granted interim relief on 01.04.2014, extended till further orders on 15.04.2014, and vacated the same on 22.05.2014.
Issues
Whether the order vacating interim relief was passed in violation of principles of natural justice?
Submissions/Arguments
Appellant argued that the order vacating interim relief was passed without giving an opportunity of hearing.
Respondents opposed the appeal.
Ratio Decidendi
An order vacating interim relief without affording an opportunity of hearing to the affected party is violative of principles of natural justice and liable to be set aside.
Judgment Excerpts
Appellant is before this Court under Section 4 of the Karnataka High Court Act, 1961 challenging the order dated 22.05.2014 made in W.P.Nos.104278-281/2014 on the file of learned Single Judge.
The order dated 22.05.2014 passed by the learned Single Judge is set aside and the interim relief granted on 01.04.2014 and extended on 15.04.2014 is restored.
Procedural History
The appellant filed writ petition challenging assessment order under KVAT Act. Learned Single Judge granted interim relief on 01.04.2014, extended on 15.04.2014, and vacated on 22.05.2014. Appellant filed writ appeal under Section 4 of Karnataka High Court Act, 1961.
Acts & Sections
- Karnataka High Court Act, 1961: Section 4
- Karnataka Value Added Tax Act, 2003:
