Judgment
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CNR: KAHC010314372026 NC: 2026:KHC:46876 WP No. 14142 of 2026 C/W WP No. 23226 of 2026
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. 14142 OF 2026 (T-RES) C/W WRIT PETITION NO. 23226 OF 2026 W.P. NO. 14142 / 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, 2NDMAIN ROAD, KUNIGAL ROAD, BANASHANKARI, TUMAKURU, KARNATAKA - 572 102 …PETITIONER (BY SRI. JOSEPH VARGHESE ,ADVOCATE) AND:
1.
COMMERCIAL TAX OFFICER ENFORCEMENT SOUTH ZONE-31 HAVING ITS OFFICE AT B-BLOCK, ROOM NO. 605, 6TH FLOOR, VTK BUILDING,
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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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 3RDFLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA, BENGALURU-560 058.
4.
COMMERCIAL TAX OFFICER (AUDIT)3.2 DGSTO-6 HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA BENGALURU-560058 …RESPONDENTS (BY SRI. K. HEMAKUMAR , AGA A/W;
SMT. MALAVIKA PRASAD, HCGP)
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
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SUMMARY OF SHOW CAUSE NOTICE ISSUED FORM DRC-01 DATED 26.09.2025 BEARING NO.
ZD290925174179N AND CASE ID AD290925055881H 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 28.01.2026 BEARING NO.CTO (AUDIT)/M.GIRI/287/T.NO.781/25-26 BY THE RESPONDENT NO.2 (ANNEXURE-B)IV) QUASHING THE IMPUGNED SUMMARY OF ORDER ISSUED IN FORM GST DRC-07 DATED 28.01.2026 BEARING REFERENCE NO. ZD290126147739W 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 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
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TIME-BOUND MANNER IN SUCH PERIOD AS THIS HONBLE COURT MAY DEEM FIT.
W.P. NO. 23226/2026 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:
1.
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (VIGILANCE -04), KORAMANGALA HAVING ITS OFFICE AT VTK-2, RAJENDRANAGARA, 8TH BLOCK, KORAMANGALA BENGALURU – 560047.
2.
JOINT COMMISSIONER OF COMMERCIAL TAXES, (ADMINISTRATION) - DGSTO-06, HAVING ITS OFFICE AT 3RDFLOOR, KIADB BUILDING,
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2ND STAGE, PEENYA, BENGALURU-560 058.
3.
COMMERCIAL TAX OFFICER (AUDIT)6.2 DGSTO-6 HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA BENGALURU-560058 …RESPONDENTS (BY SRI. K. HEMAKUMAR , AGA A/W;
SMT. MALAVIKA PRASAD, HCGP)
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 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) QUASH THE IMPUGNED 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) QUASH 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)- 6.8/ADJ/S.74/125/2025-26 AND CASE ID ASSIGN.AUDIT/935/2025-26 BY THE RESPONDENT NO.1 (ANNEXURE B)
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IV) QUASH THE IMPUGNED SUMMARY OF ORDER ISSUED IN FORM GST DRC-07 DATED 06.03.2026 BEARING REFERENCE NO. ZD290326028699S 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:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The question for consideration is whether there could be simultaneous proceedings for the same tax period by different State GST authorities when an earlier proceeding was pending consideration. The
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CNR: KAHC010314372026 NC: 2026:KHC:46876 WP No. 14142 of 2026 C/W WP No. 23226 of 2026
Commercial Tax Officer, Bengaluru has issued a Show Cause Notice dated 26.09.2025 [impugned Annexure-A in W.P.
No.14142/2026] for the proceedings under Section 73 of the Karnataka Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017 [for short, ‘the KGST/CGST Act’] and the petitioner has responded by filing Reply dated 05.06.2024. These proceedings have remained inconclusive and when these proceedings are thus pending, the impugned Show Cause Notice dated 19.06.2025 [impugned Annexure- A in W.P. No.23226/2026] is issued for the proceedings under Section 74 of the KGST/CGST Act and the Show Cause Notice dated 26.09.2025 rather incongruously is for the proceedings under Section 73 of the KGST/CGST Act. The petitioner has not participated in the proceedings pursuant to the Show Cause Notices dated 19.06.2025 and 26.09.2025.
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The petitioner pleads bona fides and this Court must observe that if indeed the petitioner has participated in these proceedings and brought out to the notice of these officers who have issued these notices that the proceedings commenced earlier with the Notice dated 19.02.2024 are pending, there may not have to be further adjudication order.
The question for consideration now would be whether the show cause notice dated 19.02.2024 for erroneous declaration of the turnover as ‘Nil’/Exempted Turnover’ would be justified if the petitioner can justify claim for exemption producing documents. In the light of the afore, the following:
ORDER
A. The writ petition in W.P. No.14142/2026 is allowed quashing the following impugned show cause notices and the orders but observing that the Commercial Tax Officer (Audit)-6.2, DGSTO-6, Bengaluru shall
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decide on the confirmation of the notice dated 19.02.2024 extending an opportunity to the petitioner to file documents and personal hearing.
Sl.
No.
Notices/ Orders
Date Provisions of the KGST/CGST 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 28.01.2026 73(9) B 4 Summary of the Order 28.01.2026 - B1 5 Garnishee Notice 17.03.2026 79(1)(c) D
B. The consideration of the restored proceedings shall not be impeded by question of limitation though there could be limitation in view of the fact that parallel proceedings which now stand quashed were begun.
C. The writ petition in W.P.No.23226/2026 is allowed quashing the following.
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Sl.
No.
Notices/ Orders
Date Provisions of the KGST/CGST Act, 2017
Annexures 1 Show Cause Notice 19.06.2025 74 A 2 Summary of Show Cause Notice 19.06.2025 - A1 3 Adjudication Order 06.03.2026 74(9) B 4 Summary of the Order 06.03.2026 - B1
D. The petitioner is reserved with liberty to file a certified copy of this order with the Commercial Tax Officer (Audit)-6.2, DGSTO-6, Bengaluru by 30.09.2026.
Sd/- (B M SHYAM PRASAD) JUDGE
SA Ct:sr