M/S Sri Vinayaka Electricals vs. Commercial Tax Officer
Held
The High Court found the simultaneous proceedings under Section 73 and Section 74 incongruous. It quashed the show cause notice and adjudication order under Section 74 entirely. For the Section 73 proceedings, it quashed the adjudication order and garnishee notice, restoring the matter for reconsideration to allow the petitioner to present documents justifying its exemption claim.
Facts
The petitioner, M/s Sri Vinayaka Electricals, challenged two sets of proceedings under the KGST/CGST Act: one under Section 73 for erroneous declaration of turnover as 'Nil'/Exempted, and another under Section 74 for GSTR-3B and GSTR-7 mismatches. Both proceedings culminated in ex-parte adjudication orders and a garnishee notice, as the petitioner failed to respond, despite claiming exemption under Notification No.12/2017.
Key Issues
Whether two simultaneous proceedings under Section 73 and Section 74 of the KGST/CGST Act can be sustained, and if ex-parte adjudication orders should be set aside to allow the petitioner to present its case for exemption.
Sections Cited
Section 73, Section 73(9), Section 74, Section 74(9), Section 79(1)(c)
AI-generated summary — verify with the full judgment below
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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