M/S Rks Agrotech LTD vs. The Assistant Commissioner Of Commercial Taxes (Adudit) 1.1
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Before: SHRI. VIKASH SETHIA
The petitioner's grievance is with the Adjudication Order dated 31.12.2025 in Form GST DRC-07 [Annexure-B] under Section 73 of the Central Goods and Services Tax Act, 2017/Karnataka Goods and Services Tax Act, 2017 [for short, 'the CGST/KGST Act'] and the recovery notice addressed to this Banker [M/s. State Bank of India] in Form GST DRC-13 dated 19.05.2026 [Annexure - A]. The proceedings are for the financial year 2021-22. 2. Mr. Saptarshi Mukhopadhyay, the learned counsel for the petitioner, argues for interference with the Adjudication Order and the recovery notice on the short ground viz., lack of application of mind. In elaboration, the learned counsel submits that if the HC-KAR
CNR: KAHC010498352026 NC: 2026:KHC:39489 WP No. 23072 of 2026
Adjudicating Authority in the impugned Adjudication Order has first mentioned that there is no response to the Show Cause Notice and the reminders for personal appearance and that the Adjudicating Authority has next referred to the petitioner’s reply dated 23.12.2025 [Annexure - H].
Mr. K. Hema Kumar, a learned Additional Government Advocate who accepts notice for the respondent, is heard. The learned Additional Government Advocate points out that the proceedings are initiated based on the audit observations to which the petitioner has not responded and that the ITC claimed by the petitioner is rejected because of the mismatch in the GSTR-1/GSTR-2A and GSTR-3B opining that the petitioner’s suppliers have not discharged liabilities.
It is seen form the records that the petitioner after the issuance of the Show Cause HC-KAR
CNR: KAHC010498352026 NC: 2026:KHC:39489 WP No. 23072 of 2026
Notice dated 15.09.2025, referring to such notice and the intimation has, on 23.12.2025, uploaded its reply dated 11.12.2025 stating, amongst others, that all supplies are supported by valid tax invoices, debit notes from the registered owners. The Adjudication Order is in the premise that the petitioner has failed to produce books of accounts and other documents to support the declaration. This Court is of the view the Adjudication Order is without considering the petitioner’s response dated 23.12.2025 to the Show Cause Notice and that the petitioner must have another opportunity to produce all documents. Hence, the following.
ORDER [A] The petition is allowed in-part.
[B] The impugned Adjudication Order dated 31.12.2025 [Annexure - B] and the Recovery Notice dated 19.05.2026 HC-KAR
CNR: KAHC010498352026 NC: 2026:KHC:39489 WP No. 23072 of 2026
[Annexure - A] are quashed restoring the proceedings to the respondent for due consideration.
[C] The petitioner shall appear before the respondent on 22.09.2026 along with all necessary documents. (B M SHYAM PRASAD) JUDGE
RB
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.