M/S Sanrachna Steel Design PVT LTD vs. Joint Commissioner Of Commercial Taxes - Karnataka High Court, 21 July 2026

Cause title — parties, addresses and appearances

- 1 - HC-KAR CNR: KAHC010479752026 NC: 2026:KHC:37372 WP No. 21619 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 21619 OF 2026 (T-RES) BETWEEN: M/S SANRACHNA STEEL DESIGN PVT LTD HAVING ITS REGISTERED OFFICE AT, NO. 720, MEHAI TOWER, ORR, HRBR LAYOUT, 1ST BLOCK, KALYAN NAGAR, BENGALURU 560 043 REG. UNDER COMPANIES ACT 1956 REPRESENTED BY ITS AUTHORIZED SIGNATORY AND DIRECTOR MR. PRITISH KHAITAN. …PETITIONER (BY MS. ADITI S., ADVOCATE FOR SRI. ALOKE MADAPPA., ADVOCATE) AND: 1. JOINT COMMISSIONER OF COMMERCIAL TAXES APPEALS 09, BMTC COMPLEX, KORAMANGALA, BENGALURU 560 095. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010479752026 NC: 2026:KHC:37372 WP No. 21619 of 2026 AUDIT 5.10, DGST0-5, VTK-2, B BLOCK, 6TH FLOOR, KORAMANGALA, BENGALURU 560 047. …RESPONDENTS (BY SMT.JYOTHI M MARADI., HCGP) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO I. QUASHING THE ORDER DATED 23.04.2026 BEARING T.P. NO 33/2026-27 PASSED BY THE R1 IN GST. AP. NO. 682/2025-26 (ANNX-A) ORDER O. ZD290426124006K; II. QUASHING THE EX-PARTE ORDER DATED 18.02.2025 PASSED BY THE RESPONDENT NO. 2 (ANNEXURE B); III) QUASHING THE SHOW CAUSE NOTICE DATED 26.11.2024 ISSUED BY THE RESPONDENT NO. 2 (ANNEXURE - C). THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR CNR: KAHC010479752026 NC: 2026:KHC:37372 WP No. 21619 of 2026

ORAL ORDER

The petitioner’s grievance is with [a] the Adjudication Order dated 18.02.2025 [Annexure-B] under Section 73[9] of the Karnataka Goods and Services Tax Act, 2017 [for short, ‘the Act’] and the relevant Rules read with Sections 4 and 20 of the Integrated Goods and Services Tax Act, 2017 and [b] the confirmation thereof with the dismissal of the Appeal in No. GST.AP. No. 682/2025-26 by Order dated 23.04.2026 [Annexure-A]. The proceedings are for the tax period April 2020 to March 2021. The petitioner's appeal is dismissed on the ground of limitation. The petitioner's GST registration is cancelled on 22.09.2022, and thereafter, based on an Audit Report dated 14.11.2024, the petitioner is issued with the Show Cause Notice dated 26.11.2024 resulting in the Adjudication Order without the petitioner's participation. Ms. Adithi S, the learned counsel for the petitioner, and Ms. Jyothi M Maradi, HC-KAR

CNR: KAHC010479752026 NC: 2026:KHC:37372 a learned Government Pleader, are heard for disposal of the petition while examining whether the petitioner must be extended an opportunity to show cause with the learned Government Pleader asserting that the Intimation dated 21.11.2024 being uploaded on the common portal should suffice because there would be deemed service or publication as provided under Section 169 of the Act.

It is brought to this Court's notice that the question whether uploading of Notice/Orders/Communication on the common portal would suffice is a matter that is pending consideration before a Co-ordinate Bench. However, the question as aforesaid is examined in the light of the fact that the petitioner’s GST registration is cancelled more than two years prior to the intimation in Form GST DRC-01A, and this Court finds bonafides in the petitioner’s assertion that because the GST registration was cancelled the petitioner's HC-KAR

CNR: KAHC010479752026 NC: 2026:KHC:37372 representative did not anticipate proceedings relating to the period prior to the cancellation. In the circumstances and this Court’s view that the petitioner's bona fides are shown, there must be an opportunity to the petitioner, notwithstanding the dismissal of the appeal, to show cause against the Adjudication Order under Section 73 of the Act. Hence, the following. ORDER [A] The petition is allowed in-part. [B] The Order-in-Appeal in GST.AP. No.682/2025-26 dated 23.04.2026 [Annexure-A] and the Adjudication Order dated 18.02.2025 [Annexure-B] are quashed. [C] The proceedings are restored to the second respondent for reconsideration after extending an opportunity to the HC-KAR

CNR: KAHC010479752026 NC: 2026:KHC:37372 petitioner to file response to the Show Cause Notice dated 26.11.2024. [D] The petitioner shall file such response, if any, to the Show Cause Notice by 07.09.2026 without further notice. (B M SHYAM PRASAD) JUDGE

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