M/S Gapbridge Software Services Private Limited. vs. The Commissioner Of Central Tax. - Karnataka High Court, 21 July 2026

Cause title — parties, addresses and appearances

- 1 - HC-KAR CNR: KAHC010480202026 NC: 2026:KHC:37371 WP No. 21616 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. 21616 OF 2026 (T-RES) BETWEEN: M/S GAPBRIDGE SOFTWARE SERVICES PRIVATE LIMITED., 157/A, 2ND FLOOR, 5TH SECTOR OUTER RING ROAD, HSR LAYOUT, BENGALURU-560102. (PETITIONER IS A PRIVATE LIMITED COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 AND REPRESENTED BY SRI.KAIPA NARASIMHA SASTRY, S/O K. BHASKAR SASTRY, AGED ABOUT 59 YEARS AUTHORIZED REPRESENTATIVE OF THE COMPANY) …PETITIONER (BY SRI. SRINIVAS PRASAD K V., ADVOCATE) AND: THE COMMISSIONER OF CENTRAL TAX, SOUTH COMMISSIONERATE, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010480202026 NC: 2026:KHC:37371 WP No. 21616 of 2026 C.R. BUILDING, QUEENS ROAD, BENGALURU-560001. …RESPONDENT (BY SRI.ARAVIND V CHAVAN., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASHING AND SETTING ASIDE THE ORDER-IN-ORIGINAL NO.27/ST/COMMR/2023-24 DATED 15.12.2023 (ANNEXURE-H); B) DIRECTING THE RESPONDENT TO DECIDED THE ISSUE AFRESH AFTER CONSIDERING THE SUBMISSIONS MADE IN RESPECT OF EXEMPTIONS AVAILABLE TO CLEARANCE MADE TO SEZ UNITS AND SALE OF GOOD. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner has called in question the Order- in-Original dated 15.12.2023 [Annexure-H] under the provisions of the Finance Act, 1994 read with Section 74 of the Central Goods and Services Tax Act, 2017 [for short, ‘the Act’]. The respondent has determined the gross taxable value of the services provided by the HC-KAR

CNR: KAHC010480202026 NC: 2026:KHC:37371 petitioner between October 2015 and March 2016 holding that the petitioner is liable to pay service tax dues with interest and penalty amounting to Rs.1,13,74,303/-.

Sri K V Srinivas Prasad, the learned counsel for the petitioner, submits that this Court could consider disposing of the petition interfering with the Adjudication Order dated 15.12.2023 restoring the proceedings for fresh consideration directing the respondent to call for the necessary details and ensure there is due reconciliation before there is confirmation of the liability. In support, the learned counsel submits as follows. [a] The petitioner is issued with the Communication dated 17.01.2018 calling for documents for the period 2013-14 to 2017-18 [upto June 2017] as part of an investigation. HC-KAR

CNR: KAHC010480202026 NC: 2026:KHC:37371 [b] The petitioner is issued with summons on 19.02.2018 to produce these very documents. [c] The petitioner, being entitled to avail the benefits of the Sabka Vishwas [Legacy Dispute Resolution] Scheme, 2019 [for short, the Scheme’], has filed all the details and discharged the entire liability on 29.05.2020 in terms of the Scheme. [d] The petitioner has first offered a sum of Rs.71,92,478/- [pre-deposit] and the petitioner has offered the balance sum of Rs.1,01,533/- on 29.05.2020 in terms of Annexure-F. [e] The respondent has failed to consider the petitioner's case that the benefit availed under the Scheme covers even the HC-KAR

CNR: KAHC010480202026 NC: 2026:KHC:37371 period between October 2015 and March 2016. [f] If the respondent calls for the file relating to the Communication dated 30.11.2018 in reference No. V/93/2017- 18/BZU, the respondent can verify that the petitioner has availed the benefit under the Scheme even for the period between October 2015 and March 2016. 3. Sri Aravind V Chavan, a learned standing counsel for the respondent who accepts notice for the respondent, is heard in the light of these submissions and the records are perused. At this stage, this Court can opine based on the details as found in Annexure- E that the petitioner's offer for payment of dues under the Scheme is in the light of the pending investigation by the Directorate General of GST Intelligence which has issued summons dated 19.02.2018 preceded by the Communication dated HC-KAR

CNR: KAHC010480202026 NC: 2026:KHC:37371

17.01.

2018 to produce documents for the period from 2013-14 to 2017-18 [upto June 2017].

If indeed the petitioner's offer covers this period, it would also take within it the period between October 2015 and March 2016 and in that event there would be no occasion for an order for a decision in terms of the impugned order as per Annexure-H. Hence, this Court is of the view that there must be interference for restoration of the proceedings for due consideration, directing the respondent to call for the relevant file while directing the petitioner also to furnish any clarification that may be necessary.

Hence the following. ORDER [a] The petition is allowed in-part.

[b] The impugned Order-in-Original dated 15.12.2023 [Annexure-H] is quashed restoring HC-KAR

CNR: KAHC010480202026 NC: 2026:KHC:37371 the proceedings to the respondent on the following terms. [i] The respondent shall call for the file relevant to the Communication dated 30.11.2018 in No. V/93/2017- 18/BZU and extend an opportunity to the petitioner to offer reconciliation if required. [ii] The petitioner shall appear before the respondent on 24.08.2026 without further notice. (B M SHYAM PRASAD) JUDGE

AN/-