Judgment
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CNR: KAHC010314252026 NC: 2026:KHC:46879 WP No. 14231 of 2026 C/W WP No. 23228 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14231 OF 2026 (T-RES) C/W WRIT PETITION NO. 23228 OF 2026 [T-RES]
W.P. NO. 14231/2026
BETWEEN:
M/S SRI VINAYAKA ELECTRICALS A SOLE PROPRIETORSHIP, HAVING ITS PLACE OF BUSINESS AT NO. 109, WARD 17, KOARACHARA COLONY, K R EXTENSION, MADHUGIRI, TUMAKURU, KARNATAKA-572 132.
REPRESENTED BY ITS PROPRIETOR, MR. NAGARAJ AGED ABOUT 44 YEARS, S/O NARAYANAPPA, RESIDING AT NO. 16, 2ND MAIN ROAD, KUNIGAL ROAD, BANASHANKARI, TUMAKURU, KARNATAKA-572 102 …PETITIONER (BY SRI. JOSEPH VARGHESE , ADVOCATE)
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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CNR: KAHC010314252026 NC: 2026:KHC:46879 WP No. 14231 of 2026 C/W WP No. 23228 of 2026
AND:
1.
COMMERCIAL TAX OFFICER ENFORCEMENT SOUTH ZONE - 31 HAVING ITS OFFICE AT B-BLOCK, ROOM NO. 605, 6TH FLOOR, VTK BUILDING, RAJENDRANAGARA, KORAMANGALA, BENGALURU-560047
2.
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, DGSTO-06 HAVING ITS OFFICE AT BEHIND SHANKAR MUTT, SRI RAGHAVENDRA BADAVANE, MADHUGIRI, TUMAKURU-572 132.
3.
JOINT COMMISSIONER OF COMMERCIAL TAXES, (ADMINISTRATION) - DGSTO-06, HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA, BENGALURU-560 058.
4.
COMMERCIAL TAX OFFICER (AUDIT)-602 DGSTO-06 HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA BENGALORE-560058 …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA A/W SMT. MALAVIKA PRASAD, HCGP)
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CNR: KAHC010314252026 NC: 2026:KHC:46879 WP No. 14231 of 2026 C/W WP No. 23228 of 2026
THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED SHOW CAUSE NOTICE ISSUED UNDER SECTION 73 OF THE KGST ACT, 2017, DATED 26.09.2025 BEARING NO. ADCOM/ENF/SZ/CTO-31/ DRC-01/2024-25 ISSUED BY THE RESPONDENT NO.1 (ANNEXURE-A) II) QUASHING THE IMPUGNED SUMMARY OF SHOW CAUSE NOTICE ISSUED FORM DRC-01 DATED 26.09.2025 BEARING NO.
ZD2909251740054 AND CASE ID AD290925055281T ISSUED BY THE RESPONDENT NO.1 (ANNEXURE-A1) III) QUASHING THE IMPUGNED ADJUDICATION ORDER PASSED UNDER SECTION 73(9) OF THE KGST ACT, 2017 DATED 23.12.2025 BEARING NO CTO (AUDIT) /M.GIRI./259/T.NO.751/25-26 BY R2 (ANNEXURE-B) IV) QUASHING THE IMPUGNED SUMMARY OF ORDER ISSUED IN FORM GST DRC-07 DATED 23.12.2025 BEARING REFERENCE NO. ZD291225177868M ISSUED BY THE RESPONDENT NO.2 (ANNEXURE-B1) V) QUASHING THE IMPUGNED GARNISHEE NOTICE ISSUED UNDER SECTION 79(1)(c) OF THE KGST ACT, 2017 BY THE RESPONDENT NO.2 DATED 17.03.2026 BEARING NO CTO(AUDIT)/MADHUGIRI/894/2025-26 TO THE BANKER OF THE PETITIONER, THE BRANCH MANAGER, AXIS BANK, TUMAKURU (ANNEXURE-D) VI) ALTERNATIVELY, REMAND THE MATTER TO THE STAGE OF HEARING ON THE IMPUGNED SHOW CAUSE NOTICE ISSUED UNDER SECTION 73 OF THE KGST
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CNR: KAHC010314252026 NC: 2026:KHC:46879 WP No. 14231 of 2026 C/W WP No. 23228 of 2026
ACT, 2017, DATED 26.09.2025 BEARING NO.
ADCOM/ENF/SZ/CTO-31/DRC-01/2024-25 ISSUED BY THE RESPONDENT NO.1 (ANNEXURE-A), KEEPING ALL CONTENTIONS OPEN AND THE REMAND PROCEEDINGS TO BE CONDUCTED IN ACCORDANCE WITH LAW IN A TIME-BOUND MANNER IN SUCH PERIOD AS THIS HONBLE COURT MAY DEEM FIT.
W.P. NO. 23228/2026 BETWEEN:
M/S SRI VINAYAKA ELECTRICALS A SOLE PROPRIETORSHIP, HAVING ITS PLACE OF BUSINESS AT NO. 109, WARD 17, KOARACHARA COLONY, K R EXTENSION, MADHUGIRI, TUMAKURU, KARNATAKA-572 132.
REPRESENTED BY ITS PROPRIETOR, MR. NAGARAJ AGED ABOUT 44 YEARS, S/O NARAYANAPPA, RESIDING AT NO. 16, 2ND MAIN ROAD, KUNIGAL ROAD, BANASHANKARI, TUMAKURU, KARNATAKA-572 102 …PETITIONER (BY SRI. JOSEPH VARGHESE, ADVOCATE)
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AND:
1.
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (VIGILANCE – 04) KORAMANGALA HAVING ITS OFFICE AT VTK – 2, RAJENDRANAGARA 8TH BLOCK, KORAMANGALA BENGALURU – 560047.
3.
JOINT COMMISSIONER OF COMMERCIAL TAXES, (ADMINISTRATION) - DGSTO-06, HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING, 2ND STAGE, PEENYA, BENGALURU-560 058.
4.
COMMERCIAL TAX OFFICERS (AUDIT)-6.2 DGSTO-06 HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA BENGALORE-560058 …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA A/W SMT. MALAVIKA PRASAD, HCGP)
THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED SHOW CAUSE NOTICE ISSUED UNDER SECTION 74 OF THE KGST ACT, 2017, DATED 19.06.2025 BEARING NO. JCCT(VIG)/ACCT(VIG)- 04/2024-25 ISSUED BY THE RESPONDENT NO.1 (ANNEXURE A)
II) QUASHING THE IMPUGNED
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SUMMARY OF SHOW CAUSE NOTICE ISSUED FORM DRC-01 DATED 19.06.2025 BEARING NO.
ZD2906250618505 AND CASE ID- AD290325091820X ISSUED BY THE RESPONDENT NO.1 (ANNEXURE A1) III) QUASHING THE IMPUGNED ORDER OF ADJUDICATION PASSED UNDER SECTION 74(9) OF THE KGST ACT, 2017, DATED 06.03.2026, BEARING NO- DGSTO- 06/AC(A)-ADJ/S.74/124/2025-26 AND CASE ID ASSIGN.AUDIT/934/2025-26 BY THE RESPONDENT NO.
1 (ANNEXURE B) IV) QUASHING THE IMPUGNED SUMMARY OF ORDER ISSUED IN FORM GST DRC-07 DATED 06.03.2026 BEARING REFERENCE NO.
ZD2903260284368 ISSUED BY THE RESPONDENT NO.1 (ANNEXURE-B1) V) ALTERNATIVELY, REMAND THE MATTER TO THE STAGE OF HEARING ON THE IMPUGNED SHOW CAUSE NOTICE ISSUED UNDER SECTION 74 OF THE KGST ACT, 2017, DATED 19.06.2025 BEARING NO.
JCCT(VIG)/ACCT(VIG)- 04/2024-25 ISSUED BY THE RESPONDENT NO.1 (ANNEXURE A), KEEPING ALL CONTENTIONS OPEN AND THE REMAND PROCEEDINGS TO BE CONDUCTED IN ACCORDANCE WITH LAW IN A TIME-BOUND MANNER IN SUCH PERIOD AS THIS HONBLE COURT MAY DEEM FIT.
THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
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CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER
The common petitioner has called in question the following Show Cause Notices and the Adjudication Orders. These Show Cause Notices and the Adjudication Order are for the same financial period viz., 2021-22. One set of the Show Cause Notice and the Adjudication Order for the Financial Year 2021-22 is called in question in W.P.
No.14231/2026, and the other set of Show Cause Notice and Adjudication Order for the same Financial Years [2021-22 to 2024-25] is called in question in W.P. No.23228/2026.
In W.P. No.14231/2026 Sl.
No.
Notices/ Orders Date Provisions of KGST Act, 2017 Annexures 1 Show Cause Notice 26.09.2025 73 A 2 Summary of Show Cause Notice 26.09.2025
A1 3 Adjudication Order 23.12.2025 73[9] B 4 Summary of Adjudication Order 23.12.2025
B1
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5 Garnishee Notice 17.03.2026 79[1][c] D
In W.P. No.23228/2026:
Sl.
No.
Notices/ Orders Date Provisions of KGST Act, 2017 Annexures 1 Show Cause Notice/ Summary of the Show Cause Notice 19.06.2025 74(1) A & A1 2 Adjudication Order/ Summary of Adjudication Order 06.03.2026 74(9) B & B1
These Show Cause Notices/Summary of the Show Cause Notices, which are by two different Officers, has resulted in two Adjudication Orders viz., Adjudication Orders dated 23.12.2025 and 06.03.2026.
Mr. Joseph Varghese, the learned counsel for the petitioner, and Mr. K Hema Kumar, a learned Additional Government Advocate who is supported by Ms.
Malavika Prasad, a learned High Court Government Pleader, are heard for disposal of the
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petition in the light of this Court's Order in the writ petition in W.P.
No.14205/2026, W.P.
No.23296/2026 and W.P. No.23111/2026 and the undisputed fact that the impugned proceedings are on the same proposition i.e., mismatch between Form GSTR-7 and Form GSTR-3B [in W.P. No.23228/2026] and the erroneous declaration of the turnover as ‘Nil’/Exempted Turnover’ [in W.P. No.14231/2026] with the petitioner asserting the benefit of exemption under the Notification No.12/2017 and the Authorities opining that the petitioner has not produced documents to justify the claim for exemption under this Notification.
It would suffice for this Court to observe that the writ petition in W.P No.14205/2026 and other petitions stand disposed of by this Court with liberty to the petitioner to file response subject to deposit of 10% of the tax in Demand and as a consequence the impugned Show Cause Notices and Adjudication
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Orders in these writ petitions will have to be quashed. In the light of the afore, the following.
ORDER The petitions are allowed quashing the following impugned Show Cause Notices, Adjudication Orders/Summary thereof and the Garnishee Notice but observing that this shall not in any manner prejudice the consideration in the proceedings restored by this Court vide the Order in the writ petitions in W.P. Nos.14205/2026 and 23296/2026.
The details of the Show Cause Notice/the Adjudication Order/Garnishee Notice quashed in W.P.
No.14231/2026:
Sl.
No.
Notices/ Orders Date Annexures 1 Show Cause Notice 26.09.2025 A 2 Summary of Show Cause Notice 26.09.2025 A1 3 Adjudication Order 23.12.2025 B 4 Summary of Adjudication Order 23.12.2025 B1 5 Garnishee Notice 17.03.2026 D
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The details of the Show Cause Notice and the Adjudication Order quashed in W.P. No.23228/2026
Sl.
No.
Notices/ Orders Date Annexures 1 Show Cause Notice/Summary of the Show Cause Notice 19.02.2025 A & A1 2 Adjudication Order/ Summary of Adjudication Order 06.03.2026 B & B1
Sd/- (B M SHYAM PRASAD) JUDGE
AN/-