M/S Lazard Infrastructure LLP vs. The Assistant Commissioner Of Commercial Taxes
Held
The High Court held that the blocking of ITC without intimation or pre-decisional hearing was unsustainable and violated principles of natural justice. It directed the respondent to immediately unblock the ITC, while allowing the authorities to initiate fresh proceedings after providing proper notice and a pre-decisional hearing.
Facts
M/s Lazard Infrastructure LLP challenged the blocking of its Input Tax Credit (ITC) of Rs. 3,81,407/- by the Assistant Commissioner of Commercial Taxes. The petitioner contended that the ITC was blocked without any prior notice or pre-decisional hearing, despite the respondent citing a communication from Central GST authorities regarding services from a non-existent entity.
Key Issues
The key legal issue was whether the blocking of Input Tax Credit by the tax authorities without providing prior intimation or a pre-decisional hearing was legally permissible and in adherence to principles of natural justice.
Sections Cited
None
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010629652026 NC: 2026:KHC:49967 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 28678 OF 2026 (T-RES) BETWEEN:
M/S LAZARD INFRASTRUCTURE LLP A LIMITED LIABILITY PARTNERSHIP REGISTERED UNDER THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 HAVING OFFICE AT NO. 201 AND 202, KALPAK ARCADE, 2ND FLOOR, 19, CHURCH STREET, BENGALURU 560001 REP. BY ITS AUTHORISED REPRESENTATIVE SHRI. VIKAS SETHIA
…PETITIONER
(BY SRI. HEMANT VENKATRAY PAI, ADVOCATE FOR SRI. LOCHANA S BABU., ADVOCATE) VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010629652026 NC: 2026:KHC:49967 AND:
THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-20, NO. 19/3, 2ND FLOOR, CUNNINGHAM ROAD, BENGALURU - 560052
…RESPONDENT (BY SMT. JYOTI M MARADI, HCGP)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRA
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