M/S Sri Vinayaka Electricals vs. Assistant Commissioner Of Commercial Taxes
Held
The Court held that simultaneous proceedings under Section 74 after an adjudication under Section 73 were incongruous and quashed the Section 74 proceedings entirely. For the Section 73 proceedings, the Court quashed the ex-parte adjudication order and garnishee notice, restoring the matter to the show cause notice stage for reconsideration to allow the petitioner to present its case for exemption.
Facts
The petitioner challenged two sets of GST proceedings initiated by different officers under Sections 73 and 74 of the KGST/CGST Act, 2017, for different financial periods. The proceedings under Section 73 concerned erroneous declaration of turnover, while those under Section 74 related to GSTR-3B and GSTR-7 mismatches. Both adjudications were passed ex-parte as the petitioner failed to respond.
Key Issues
The key issues were the validity of simultaneous and incongruous GST proceedings under Sections 73 and 74 by different authorities, and whether an ex-parte adjudication order should be set aside to allow the taxpayer to present its claim for exemption.
Sections Cited
Section 73, Section 73(9), Section 74, Section 74(9), Section 79(1)(c), Notification No. 12/2017
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Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
- 1 -
HC-KAR
CNR: KAHC010313912026 NC: 2026:KHC:46880 IN THE HIGH COURT OF KARNATAKAAT BENGALURU DATED THIS THE 29THDAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14145 OF 2026 (T-RES) C/W WRIT PETITION NO. 23152 OF 2026
W.P. NO. 14145 / 2026
BETWEEN:
M/S SRI VINAYAKA ELECTRICALS A SOLE PROPRIETORSHIP, HAVING ITS PLACE OF BUSINESS AT NO. 109. WARD 17. KOARACHARA COLONY, KR 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) AND:
COMMERCIAL TAX OFFICER ENFORCEMENT SOUTH ZONE-31 HAVING ITS OFFICE AT B-BLOCK, ROOM NO. 605, VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010313912026 NC: 2026:KHC:46880 6TH FLOOR, VTK BUILDING, RAJENDRANAGARA, KORAMANGALA BENG
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