BharatTaxGST

M/S Hardik Gowda vs. The Additional Commissioner Of Commercial Taxes (Enf)

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WP/12182/2026HC KarnatakaGSTCNR KAHC01027309202610 July 2026Bench: B M SHYAM PRASAD10 pages
For Petitioner: SRI. DALWAI VENKATESH., ADVOCATE FOR SMT. LOCHANA S BABU., ADVOCATEFor Respondent: SRI.K. HEMA KUMAR., AGA

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2026:KHC:35169 WP No. 12182 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 12182 OF 2026 (T-RES) BETWEEN: M/S HARDIK GOWDA A PROPRIETORSHIP FIRM HAVING OFFICE AT NO. G8, BRIGADE GARDENS, 19 CHURCH STREET, BENGALURU 560001 REPRESENTED BY ITS PROPRIETOR SHRI. HARDIK GOWDA. …PETITIONER (BY SRI. DALWAI VENKATESH., ADVOCATE FOR SMT. LOCHANA S BABU.,ADVOCATE) AND: 1. THE ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES (ENF) SOUTH ZONE, VTK-2 BUILDING, RAJENDRANAGARA, KORAMANGALA, BENGALURU 560047. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-1.6 DGSTO-1, 5TH FLOOR, BMTC BUILDING, YESHWANTHPUR, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:35169 WP No. 12182 of 2026 BENGALURU 560022. 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENF)-25 SOUTH ZONE, ROOM NO. 404, 4TH FLOOR, VTK-2 BUILDING, RAJENDRANAGARA, KORAMANGALA, BENGALURU - 560047. …RESPONDENTS (BY SRI.K. HEMA KUMAR., AGA) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (I) QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 25.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ALONG WITH FORM GST DRC-01 DATED 25.03.2026 BEARING REFERENCE NO. ZD290326140502K FOR FY 2020-21 ISSUED BY THE RESPONDENT NO. 3 (ANNEXURE-A) AND; (II) QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 25.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ALONG WITH FORM GST DRC-01 DATED 25.03.2026 BEARING REFERENCE NO. ZD290326140631H FOR FY 2021-22 ISSUED BY THE RESPONDENT NO. 3 (ANNEXURE-B) AND; (III) QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 25.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ALONG WITH FORM GST DRC-01 DATED 25.03.2026 BEARING - 3 - HC-KAR NC: 2026:KHC:35169 WP No. 12182 of 2026 REFERENCE NO. ZD290326140742C FOR FY 2022-23 ISSUED BY THE RESPONDENT NO. 3 (ANNEXURE-C) AND; (IV) QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 25.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ALONG WITH FORM GST DRC-01 DATED 25.03.2026 BEARING REFERENCE NO. ZD2903261408248 FOR FY 2023-24 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-D) AND; (V) QUASHING THE IMPUGNED SHOW CAUSE NOTICE DATED 25.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ALONG WITH FORM GST DRC-01 DATED 25.03.2026 BEARING REFERENCE NO. ZD290326140902C FOR FY 2024-25 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-E) AND; (VI) QUASHING THE IMPUGNED FORM GST DRC- 01A DATED 18.03.2026 BEARING FILE NO. ADCOM/ENF/SZ/ACCT-25/INS-80/23-24 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F) AND; (VII) QUASHING THE IMPUGNED FORM GST DRC-01A PART A DATED 18.03.2026 BEARING REFERENCE NO. ZD290326102052V FOR FY 2020-21 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F1) AND; (VIII) QUASHING THE IMPUGNED FORM GST DRC 01A PART A DATED 18.03.2026 BEARING REFERENCE NO ZD290326102125Q FOR FY 2021-22 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F2) AND; (IX) ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED FORM GST DRC-01A PART A DATED 18.03.2026 BEARING - 4 - HC-KAR NC: 2026:KHC:35169 WP No. 12182 of 2026 REFERENCE NO. ZD290326102182Q FOR FY 2022-23 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F3) AND; (X) QUASHING THE IMPUGNED FORM GST DRC- 01A PART A DATED 18.03.2026 BEARING REFERENCE NO. ZD290326102220Y FOR FY 2023-24 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F4) AND; (XI) QUASHING THE IMPUGNED FORM GST DRC-01A PART A DATED 18.03.2026 BEARING REFERENCE NO. ZD290326102366G FOR FY 2024-25 ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-F5). 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's grievance is with the Intimations and the Show Cause Notices in Form GST DRC-01 and GST DRC-01A [which are produced respectively as Annexures-A, B, C, D, E and F series]. These impugned Intimations and Show Cause Notices are for the years 2020-21 to 2024-25. The details of the impugned Intimations/Show Cause Notices for the corresponding periods are as follows: HC-KAR NC: 2026:KHC:35169 The Show Cause Notice bearing No. ADCOM/ENF/SZ/ACCT-25/INS- 80/23-24 dated 25.03.2026 along with Form GST DRC – 01 dated 25.03.2026 for the financial year 2020 – 21

Annexure-A The Show Cause Notice bearing No.ADCOM/ENF/SZ/ACCT-25/INS- 80/23-24 dated 25.03.2026 along with Form GST DRC – 01 dated 25.03.2026 for the financial year 2021 – 22. Annexure-B The Show Cause Notice bearing No.ADCOM/ENF/SZ/ACCT-25/INS- 80/23-24 dated 25.03.2026 along with Form GST DRC – 01 dated 25.03.2026 for the financial year 2022-23. Annexure-C The Show Cause Notice bearing No.ADCOM/ENF/SZ/ACCT-25/INS- 80/23-24 dated 25.03.2026 along with Form GST DRC – 01 dated 25.03.2026 for the financial year 2023-24. Annexure-D The Show Cause Notice bearing No.ADCOM/ENF/SZ/ACCT-25/INS- 80/23-24 dated 25.03.2026 along with Form GST DRC – 01 dated 25.03.2026 for the financial year 2024 – 25. Annexure-E The impugned Form GST DRC -01A dated 18.03.2026 Annexure-F The impugned Form GST DRC -01A Part A dated 18.03.2026 for the financial year 2020-21

Annexure-F1 HC-KAR NC: 2026:KHC:35169 The impugned Form GST DRC -01A Part A dated 18.03.2026 for the financial year 2021-22

Annexure-F2 The impugned Form GST DRC -01A Part A dated 18.03.2026 for the financial year 2022-23

Annexure-F3 The impugned Form GST DRC -01A Part A dated 18.03.2026 for the financial year 2023-24

Annexure-F4 The impugned Form GST DRC -01A Part A dated 18.03.2026 for the financial year 2024-25

Annexure-F5

2.

Sri Dalwai Venaktesh, the learned counsel for the petitioner, submits that this Court must interfere with the impugned Intimations and Show Cause Notices for the following reasons.

[a] The Intimations and the Show Cause Notices relevant to the financial period 2020-21 to 2024-25 are for the propositions which have been examined in the statutory proceedings under Section 61 of the Central Goods and Services Tax Act, 2017/Karnataka Goods and Services Tax Act, 2017 [for short, ‘the Act’] with a finding that the explanation HC-KAR NC: 2026:KHC:35169 offered by the petitioner must be accepted and there would be no occasion for an assessment otherwise. [b] The petitioner is issued with Intimation in GST-DRC-01A for the year 2024-25 as for the three other previous years on 18.03.2026 and petitioner has filed reply on 25.03.2026, but the impugned Show Cause Notices have been issued on the same day without examining any of the responses. The learned counsel also proposes to elaborate on why the proceedings could be initiated even otherwise on merits, but these two are the fundamental grievances offered as the threshold barriers for the conclusions.

3.

Sri Hema Kumar K., the learned Additional Government Advocate who accepts notice for the respondents, is heard for the disposal of the petition. The learned Additional Government Advocate submits: HC-KAR NC: 2026:KHC:35169 [i] that the scrutiny proceedings would be independent of an inspection which could lead to, as in this case, Notice under Section 74 of the Act, and [ii] that the authorities on inspection and finding material have issued Show Cause Notices after Intimation.

On the Show Cause Notices being on the very same day [as the date of reply to the intimation], the learned Additional Government Advocate submits that even now the petitioner would have the opportunity to show cause against continuing proceedings even if the petitioner would assert that there is no occasion for invoking the provisions of Section 74 of the Act.

4.

The rival submissions are considered examining whether this Court must truncate the proceedings at the show-cause stage itself. This Court, given the two circumstances put forth and the opportunity that undeniably will be with the petitioner HC-KAR NC: 2026:KHC:35169 being asked to file a reply to the Show Cause Notice and also ask for a personal hearing, is of the view that the petition must be disposed of with liberty to the petitioner to file response to the Show Cause Notices.

5.

This Court must next observe that all grounds urged must be open to be examined for an effective conclusion and that the Adjudicating Authority must be called upon to examine in detail all circumstances including the grounds offered as against the very initiation of the proceedings. When queried, Sri K. Hema Kumar submits that his instructions are that though time provided for response has expired, the proceedings are not concluded. In the light of the afore, the following: ORDER

The petition stands disposed of reserving liberty to the petitioner to appear before the Adjudicating Authority [the second respondent] on 21.09.2026 and also be at HC-KAR NC: 2026:KHC:35169 liberty to file response to the Show Cause Notices. The Court reiterates that if the petitioner files the responses with the documents and makes a request for a personal hearing, the second respondent shall extend such opportunity and conclude the proceedings by a reasoned order considering all grounds thereof. (B M SHYAM PRASAD) JUDGE

SA Ct:sr

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.