M/S Satya Enterprises vs. The Assistant Commissioner Of Commercial Taxes (Audit) 4.3
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Cause title — parties, addresses and appearances
ORDER OF ADJUDICATION DATED 29.11.2025 PASSED BY RESPONDENT NO.1 IS ENCLOSED AND MARKED AS ANNEXURE-B1; VII) QUASHING THE CHALLENGING THE GST FORM DRC-07 BEARING REFERENCE NO. ZD2911252492394 DATED 29.11.2025 ISSUED BY THE RESPONDENT NO.
COPY OF THE DRC-07 DATED 29.11.2025 IS ENCLOSED AND MARKED AS ANNEXURE -B2; VIII) QUASHING THE SHOW CAUSE NOTICE ISSUED UNDER SECTION 74 OF THE ACT DATED 05.01.2024 VIDE SCN NO. ACCT (AUDIT)-4.3/GST/U- 74/T-/2023-24 ISSUED BY THE RESPONDENT NO.
COPY OF THE SHOW CAUSE NOTICE DATED 05.01.2024 IS ENCLOSED AND MARKED AS ANNEXURE - B3; IX) QUASHING THE INTIMATION ISSUED UNDER HC-KAR NC: 2026:KHC:35173 SECTION 74 IN FORM GST DRC-01 DATED 05.01.2024 BEARING REFERENCE NO. ZD2901240072871 ISSUED BY THE RESPONDENT NO.
COPY OF THE FORM GST DRC-01 DATED 05.01.2024 IS ENCLOSED AND MARKED AS ANNEXURE -B4; X) QUASHING THE INTIMATION OF TAX ISSUED IN FORM GST DRC-01A DATED 08.11.2023 BY THE RESPONDENT NO.1 VIDE FILE NO. ACCT (AUDIT) -4.3/GST/ U-74/T-/2023-24. COPY OF THE DRC-01A DATED 08.11.2023 IS ENCLOSED AND MARKED AS ANNEXURE B5 AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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 Show Cause Notices as also the Adjudication Orders. The details of the impugned Show Cause Notices, Orders/Summary thereof and the details of the officers who have issued these notices and passed the HC-KAR NC: 2026:KHC:35173 Orders as also the relevant financial periods are as indicated in the table below1: The Adjudication Order and the corresponding Summary thereof
Date
Authority
FY The corresponding Show Cause Notice A1 29/11/2025
Audit – 4.3
2018-19
A3 A2 29/11/2025 B1 29/11/2025
Audit – 4.3
2019-20
B3 B2 29/11/2025 C1 24/02/2025 ACIT, LGSTO - 017
2020-21
C3 C2 24/02/2025 D1 29/11/2025
Audit – 4.3
2020-21
D3 D2 29/11/2025 E1 15/12/2025
ACIT, LGSTO – 017
2021-22
E3 E2 15/12/2025 F1 01/12/2025
Audit – 4.3
2021-22
F3 F2 01/12/2025 G1 01/12/2025
Audit – 4.3
2022-23
G3 G2 01/12/2025
Sri. Ravi Shankar S.V., the learned counsel for the petitioner, and Sri K. Hema Kumar, the learned Additional Government Advocate for the respondents, are heard for disposal of the petition with the learned counsel for the petitioner requesting for restoration of 1 The details of the proceedings by the same Officer are marked either in Red or Blue. HC-KAR NC: 2026:KHC:35173 the proceedings with liberty to file response to the Show Cause Notices as per Annexures- A3, B3, D3, F3 and G3. 2 The petitioner's business is wound up with effect from 29.03.2022 and its GST registration is also cancelled. The petitioner has not sought for revocation of the cancellation because it is not pursuing the business. The notices are issued after the petitioner has wound up its business. The petitioner’s case is that its representative, who was not following up on the portal because of the closure of the business, was not aware of these notices until the Adjudication Orders.
3 If one officer has issued the show cause notices for the financial years 2020-21 and 2021-22 [as per Annexure- C3 and E3], another officer has issued five simultaneous notices for the financial years 2018-19, 2019-20, 2020-21, 2021-22, 2022-23 [as per Annexures – A3, B3, D3, F3 and G3]. As such, HC-KAR NC: 2026:KHC:35173 there are two notices for the same financial years [2020-21 and 2021-22] issued by the different officers, and each of these officers have concluded the proceedings by the different impugned Orders resulting in two orders for these two years. When queried, it is submitted that the appropriate officer would be the first respondent for all these years.
4 This Court, with this admitted position, must next opine that the orders as per Annexures- C1 - C2 and E1 - E2 and the corresponding show cause notices as per Annexures-C3 and E3, which are by the second respondent, will have to yield because it would amount to parallel proceedings. The proceedings initiated by the first respondent must be restored with opportunity to the petitioner. The petitioner must have opportunity to respond to these proceedings because the notices are issued after the petitioner has wound up the business. HC-KAR NC: 2026:KHC:35173 As regards the other impugned orders [as per Annexures- A1-A2, B1-B2, D1-D2, F1-F2 and G1- G2], this Court is of the view that these must also yield restoring such proceedings and that the petitioner must have an opportunity to show cause against the conclusion of the proceedings because undisputedly even these proceedings are initiated with notices being issued after winding up of the business. Further, this Court is of the view that all questions must be left open to be considered with opportunity to the petitioner to file reply to the Show Causes Notices as per Annexures- A3, B3, D3, F3 and G3. Hence, the following: ORDER [A] The petition is allowed in-part. The following notices/adjudication orders are quashed. The details of the Show Cause Notices and the Adjudication Orders /Summary thereof which are quashed: HC-KAR NC: 2026:KHC:35173 Description Date FY Annexures The Show Cause Notice
24/02/2025
2020-21
Annexure-C3, C1 and C2
The Adjudication Order Summary of this Show Cause Notice The Show Cause Notice
15/12/2025
2021-22
Annexure-E3, E1 and E2 The Adjudication Order Summary of this Show Cause Notice
The details of the Adjudication Orders and the Summary thereof which are quashed: Description Date FY Annexures The Adjudication Order
29/11/2025
2018-19
Annexure-A1 and A2 Summary of this Show Cause Notice The Adjudication Order
29/11/2025
2019-20
Annexure-B1 and B2 Summary of this Show Cause Notice The Adjudication Order
29/11/2025
2020-21
Annexure-D1 and D2 Summary of this Show Cause Notice The Adjudication Order
01/12/2025
2021-22
Annexure-F1 and F2 HC-KAR NC: 2026:KHC:35173 [B] The petitioner is reserved with liberty to file responses to each of these Show Cause Notices [as per Annexures- A3, B3, D3, F3 and G3] individually and separately by 05.10.2026. (B M SHYAM PRASAD) JUDGE
SA Ct:Sr Summary of this Show Cause Notice The Adjudication Order
01/12/2025
2022-23
Annexure-G1 and G2 Summary of this Show Cause Notice
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.