Judgment
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF SEPTEMBER 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 27545 OF 2026 (T-RES)
BETWEEN:
M/S. MANGALORE TRADERS, REPRESENTED BY PROPRIETORSHIP, MOHAMMED SIRAJ SON OF LATE G HAMEED, AGED ABOUT 39 YEARS, 2-55/10, KGK BALLAL ROAD, NEAR KULUR MASJID ROAD, PANJIMOGRU MANGALORE -575 013
…PETITIONER (BY SRI. MOHAMMED MONISH SOWKAR., ADVOCATE)
AND:
1.
THE ASSISSTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-4 DIVISIONAL GOODS AND SERVICE TAX OFFICE(DGSTO), MANGALORE, ROOM NO.406, 4TH FLOOR V.T.K BUILDING MAIDANA ROAD, MANGALURU-575 001.
2.
THE ASSISSTANT COMMISSIONER COMMERCIAL TAXES (ENFORCEMENT)-3
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
5TH FLOOR, VANIJYA TERGIE BHAVANA, MAIDAN ROAD, MANGALORE-575 001
…RESPONDENTS (BY SRI.K. HEMAKUMAR., AGA)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO 1) QUASHING THE ORDER OF ADJUDICATION PASSED UNDER SECTION 73(9) OF THE ACT DATED 03.07.2023 BY THE RESPONDENT NO.2 FOR TAX PERIOD 2018-19 BEARING ASSIGNMENT NO.34/2022-23 HEREIN MARKED AS ANNEXURE-A1;
II) QUASHING THE SUMMARY OF ORDER IN FORM GST DRC 07 DATED 21.07.2023 BY THE RESPONDENT NO.2 TAX PERIOD 2018-19 BEARING REFERENCE NO. ZD290723023155H HEREIN MARKED AS ANNEXURE-A2; III) QUASHING THE SHOW CAUSE NOTICE ISSUED UNDER SECTION 73(1) OF THE ACT DATED 20.05.2023 BY THE RESPONDENT NO.2 FOR TAX PERIOD 2018-19 BEARING ASSIGNMENT NO.34/2022-23 HEREIN MARKED AS ANNEXURE-A3; IV) QUASHING CHALLENGING THE SUMMARY OF SHOW CAUSE NOTICE IN FORM GST DRC 01 DATED 23.02.2024 BY THE RESPONDENT NO.2 TAX PERIOD 2018-19 BEARING REFERENCE NO.
ZD2902240585374 HEREIN MARKED AS ANNEXURE-A4;
V) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OR CERTIORARI THE ORDER OF ADJUDICATION PASSED UNDER SECTION 73(9) OF THE ACT DATED 26.12.2023 BY THE RESPONDENT NO.1 FOR TAX PERIOD 2019-20 NO ACCT(A)-BEARING 4/MNG/ORDER/2023-24 AND ORDER NO.
ZD2912230762486 HEREIN MARKED AS ANNEXURE- B1; VI) QUASHING THE SUMMARY OF ORDER IN FORM GST DRC 07 DATED 26.12.2023 BY THE RESPONDENT NO.1 TAX PERIOD 2019-20 BEARING REFERENCE NO.
ZD2912230762486 HEREIN MARKED AS ANNEXURE- B2; VII) ISSUE A WRIT OF CERTIORARI OR DIRECTION
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
IN THE NATURE OF A WRIT OR CERTIORARI THE SHOW CAUSE NOTICE ISSUED UNDER SECTION 73(1) OF THE ACT DATED 21.09.2023 FOR TAX PERIOD 2019-20 ISSUED BY THE RESPONDENT NO.1 BEARING ACCT(A)- 4/MNG/SCN/2023-24 HEREIN MARKED AS ANNEXURE- B3; VIII) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OR CERTIORARI QUASHING CHALLENGING THE SUMMARY OF SHOW CAUSE NOTICE IN FORM GST DRC 01 DATED 25.09.2023 BY THE RESPONDENT NO.
1 TAX PERIOD 2019-20 BEARING REFERENCE NO. ZD290923033567Y HEREIN MARKED AS ANNEXURE-B4; IX) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OR CERTIORARI QUASHING THE ORDER OF ADJUDICATION PASSED UNDER SECTION 73(9) OF THE ACT DATED 26.12.2023 BY THE RESPONDENT NO.1 FOR TAX PERIOD 2020-21 BEARING NO. ACCT(A)- 4/MNG/ORDER/2023-24 AND ORDER NO.
ZD291223076413F HEREIN MARKED AS ANNEXURE- C1; X) QUASHING THE SUMMARY OF ORDER IN FORM GST DRC 07 DATED 26.12.2023 BY THE RESPONDENT NO.1 TAX PERIOD 2020-21 BEARING REFERENCE NO.ZD291223076413F HEREIN MARKED AS ANNEXURE-C2; XI) QUASHING THE SHOW CAUSE NOTICE ISSUED UNDER SECTION 73(1) OF THE ACT DATED 25.09.2023 BY THE RESPONDENT NO.1 FOR TAX PERIOD 2020-21 BEARING NO.
ACCT(A)- 4/MNG/SCN/2023-24 HEREIN MARKED AS ANNEXURE- C3; XII) QUASHING THE SUMMARY OF SHOW CAUSE NOTICE IN FORM GST DRC 01 DATED 25.09.2023 BY THE RESPONDENT NO.1 TAX PERIOD 2020-21 BEARING REFERENCE NO. ZD2909230397610 HEREIN MARKED AS ANNEXURE-C4.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
ORAL ORDER
The petitioner has called in question the Show Cause Notices and the next Adjudication Orders under Section 73 and the other provisions of the Karnataka Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017 [for short, ‘the KGST/CGST Act’]. These are for the financial years 2018-19, 2019-20 and 2020-21. The details of the impugned show cause notices and the orders are as follows:
Notices/ Orders Date Provisions of KGST/CGST Act, 2017 Annexures Assessment Year Order 03.07.2023 73 (9) A1 2018-19 Summary of the Order 21.07.2023 - A2 2018-19 Notice 20.05.2023 73 (1) A3 2018-19 Summary of the Notice 23.02.2024 - A4 2018-19 Order 26.12.2023 73 (9) B1 2019-20 Summary of the 26.12.2023 - B2 2019-20
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
2.
Mr. Mohammed Monish, the learned counsel for the petitioner, submits that he argues for an opportunity to the petitioner to respond to the show cause notices because the petitioner could not avail the opportunity, and on the reason for not being able to avail the opportunity, the learned counsel submits that the petitioner's registration was cancelled and therefore did not have an occasion to verify the portal and the petitioner later had to cease operations because of COVID-19 restrictions. On the merits, the learned counsel submits that the order Notice 21.09.2023 73 (1) B3 2019-20 Summary of the Notice 25.09.2023 - B4 2019-20 Order 26.12.2023 73 (9) C1 2020-21 Summary of the order 26.12.2023 - C2 2020-21 Notice 25.09.2023 73 (1) C3 2020-21 Summary of the Notice 25.09.2023 - C4 2020-21
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
proceedings are because of an alleged mismatch in Form GSTR 2A and Form GSTR 3B for the first two years and the petitioner not filing the returns in GSTR 3B for the third year and that the petitioner has documents to show the genuineness of the transactions.
3.
Mr. K. Hema Kumar, a learned Additional Government Advocate who accepts notice for the respondents and who is assisted by Ms. Malvika Prasad, a learned High Court Government Pleader, submits that the petitioner cannot dispute that the access would even if the GST registration is cancelled and that the messages about the notices and the Adjudication Order will be delivered both on email and through the registered mobile. In fact, the learned Additional Government Advocate further submits the following.
This Court could consider that the petitioner, with the issuance of the
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
recovery notice, has filed a request for copies of the orders.
The petitioner has been issued with an Endorsement dated 29.05.2026 furnishing copies of the returned postal cover and another set of copies of the impugned Adjudication Orders.
The learned Additional Government Advocate emphasizes that this Court could consider the date of this Endorsement as the effective date of communication and reserve liberty to the petitioner to file an appeal against these Adjudication Orders if this Court is persuaded to extend another opportunity to the petitioner.
4.
However, this Court is inclined to interfere and restore the proceedings for reconsideration by the Adjudication Officer with the petitioner being put on certain terms. The petitioner perhaps could have
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
accessed the notices and the Adjudication Orders on the portal despite cancellation of the registration, but it would not be unreasonable for a Registered Taxable Person to be under the bona fide impression that the details will not be accessible, and crucially in this case, the Endorsement dated 29.05.2026 records that the earlier notices/orders sent have been returned unserved.
5.
If these two circumstances are the first set of reasons that persuade this Court, the other reason is the petitioner's willingness to produce all documents to justify the bona fides of its ITC claim in GSTR 3B for the three years but then the petitioner must deposit 10% of the amount covered under the three Adjudication Orders and such deposit should be subject to the outcome in the restored adjudication proceedings. In the light of the afore, the following:
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
ORDER
The petition is allowed in-part and the following Adjudication Orders are quashed with liberty to the petitioner to file response along with documents without further notice with the second respondent respectively by 12.10.2026. The petitioner shall by then also ensure 10% of the demand covered under these orders are deposited on terms as aforesaid.
The details of the quashed orders.
Notices/ Orders Date Provisions of KGST/CGST Act, 2017 Annexures Assessment year Order 03.07.2023 73 (9) A1 2018-19 Summary of the Order 21.07.2023 - A2 2018-19 Order 26.12.2023 73 (9) B1 2019-20 Summary of the order 26.12.2023 - B2 2019-20 Order 26.12.2023 73 (9) C1 2020-21
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HC-KAR
CNR: KAHC010601482026 NC: 2026:KHC:48014 WP No. 27545 of 2026
Sd/- (B M SHYAM PRASAD) JUDGE
SA Ct:sr Summary of the order 26.12.2023 - C2 2020-21