M/S Sri Vinayaka Elecricals vs. Commercial Tax Officer
Held
The High Court found a definite failure by the first respondent to consider the petitioner's reply to the show cause notice. Consequently, the Court quashed the adjudication order and the garnishee notices. The proceedings were restored to the first respondent for reconsideration, subject to the petitioner depositing 10% of the demanded tax and submitting supporting documents.
Facts
The petitioner, M/s Sri Vinayaka Electricals, challenged a GST demand raised due to a mismatch between GSTR-1 and GSTR-3B for the financial year 2020-2021. The petitioner claimed exemption under Notification No. 12/2017 for works contracts, asserting that the value of goods supplied was less than 25% of the contract value. The tax authorities issued a show cause notice, passed an adjudication order, and subsequently issued garnishee notices, alleging the petitioner failed to respond.
Key Issues
The key legal issues were whether the tax authorities properly considered the petitioner's reply to the show cause notice and if the petitioner was entitled to an exemption under Notification No. 12/2017 for works contracts.
Sections Cited
Rule 142[1A], Section 73[1], Section 73[9], Section 79[1][c], Notification No. 12/2017
AI-generated summary — verify with the full judgment below
- 1 - HC-KAR
CNR: KAHC010314152026 NC: 2026:KHC:46881 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. 14225 OF 2026 (T-RES) BETWEEN:
M/S SRI VINAYAKA ELECRICALS 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 (AUDIT)-6.2, DGSTO - 6 HAVING ITS OFFICE AT 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA, BENGALURU-560058. VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010314152026 NC: 2026:KHC:46881
COMMERCIAL TAX OFFICER, (ENFORCEMENT)-3 TUMAKURU, HAVING ITS OFFICE AT VANIJ
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.