M/S. Zeal Group vs. Deputy Commissioner Of Commercial Taxes (Audit)-5.9
Held
The High Court quashed the impugned adjudication and summary orders, restoring the proceedings. It directed the petitioner to deposit 10% of the tax in demand, file a response with supporting documents, and mandated the respondent to re-adjudicate the matter after affording a fresh opportunity of personal hearing.
Facts
The petitioner challenged an ex-parte adjudication order and summary order for the period April 2021 to March 2022, which was passed due to an alleged Input Tax Credit mismatch between GSTR-3B and GSTR-2A. The petitioner claimed they failed to respond to the show cause notice and reminders as they went unnoticed on the GST portal.
Key Issues
The key issues were whether the petitioner was afforded a reasonable opportunity of hearing before the ex-parte adjudication order, and the validity of denying Input Tax Credit due to GSTR-3B and GSTR-2A mismatch, especially concerning Section 16(2)(c) and Rule 36(4).
Sections Cited
Section 16(2)(c) of CGST/KGST Act, Rule 36(4) of CGST/KGST Rules, Form GST DRC-01A, Form GST DRC-01
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010547752026 NC: 2026:KHC:42886 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 24780 OF 2026 (T-RES) BETWEEN:
M/S. ZEAL GROUP 2/45, DINNUR MAIN ROAD, BENGALURU - 560032 A SOLE PROPRIETORSHIP BUSINESS ENTITY, REP. BY SHAIRAKHAN SHAKIRA KHANNUM RESIDING AT NO.80, 2ND A CROSS, SULTHAN PALAYA, BENGALURU, KARNATAKA 560032. …PETITIONER (BY SRI. BHAGAVATH P., ADVOCATE) AND:
DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-5.9, VTK-2 A-BLOCK 4TH FLOOR, ROOM NO-416, KORAMANGALA, BENGALURU-560047 …RESPONDENT (BY SRI. K. HEMA KUMAR, AGA)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE ORDER(S), DIRECTION(S), WRIT CERTIORARI VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010547752026 NC: 2026:KHC:42886 QUASHING THE ORDER-IN-ORIGINA
The judgment continues below.
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