M/S Sri Vinayaka Electricals vs. Assistant Commissioner Of Commercial Taxes
Held
The Court held that if the very initiation of proceedings is without basis, the proceedings cannot be sustained. It quashed the impugned show cause notice and the adjudication order, allowing the respondents to re-commence proceedings subject to limitation.
Facts
The petitioner challenged a show cause notice issued under Section 74(1) of the KGST/CGST Act and the subsequent adjudication order passed under Section 74A, arguing that the proceedings were improperly initiated. The petitioner also contended entitlement to an exemption under Notification No. 12/2017.
Key Issues
The key legal issue was the procedural validity of the show cause notice issued under Section 74(1) and the subsequent adjudication order passed under Section 74A, specifically whether the initiation of proceedings was proper.
Sections Cited
Section 74, Section 74A, Form GST DRC-01, Form GST DRC-07
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010511022026 NC: 2026:KHC:46883 WP No. 23240 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. 23240 OF 2026 (T-RES) 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:
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (VIGILANCE-04), KORAMANGALA, HAVING ITS OFFICE AT VTK-2, RAJENDRANAGARA, 8TH BLOCK, KORAMANGALA BENGALURU-560047
JOINT COMMISSIONER OF COMMERCIAL TAXES, (ADMIN) DGSTO - 06, HAVING ITS OFFICE AT VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010511022026 NC: 2026:KHC:46883 WP
The judgment continues below.
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