Assistant Commissioner Of Central Tax vs. M/S Pavanaputra Resorts

WA/1069/2026HC KarnatakaGSTCNR KAHC01023514202624 April 2026Bench: S.G.PANDIT,K. V. ARAVIND5 pages

For Respondent: SRI. SANDEEP HULIGOL, ADV

AI SummaryAllowed

Facts

The Revenue appealed against a Single Judge's order that allowed a writ petition, quashing a common show cause notice issued under Section 74 of the CGST Act and a subsequent Order-in-Original. The respondent had challenged these actions before the Single Judge.

Held

The Division Bench allowed the Revenue's appeal, setting aside the Single Judge's order and restoring the show cause notice and Order-in-Original. However, it granted the respondent six weeks to file a statutory appeal, directing the appellate authority to consider it on merits without raising the plea of limitation, acknowledging the respondent's diligent pursuit of the writ remedy.

Key Issues

The primary issue was whether the Single Judge correctly quashed the show cause notice and Order-in-Original, and if the respondent should be relegated to the statutory appellate remedy despite the normal limitation period having expired.

Sections Cited

Section 74

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2026:KHC:23130-DB WA No. 1069 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF APRIL, 2026 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND WRIT APPEAL NO. 1069 OF 2026 (T-RES) BETWEEN: 1. ASSISTANT COMMISSIONER OF CENTRAL TAX, HASSAN DIVISION, B.M. ROAD, D.M. HALLI, VIJAYANAGARA EXTENSION, HASSAN-573 201. 2. SUPERINTENDENT OF CENTRAL TAX (HPU), MYSURU, MYSURU CENTRAL GST COMMISSIONERATE, IIIRD FLOOR, NO. S1 AND S2, GST BHAVAN, VINAYMARGA, SIDDHARTHA NAGAR, MYSURU-570 011. 3. PRINCIPAL COMMISSIONER OF CENTRAL TAX, MYSURU, MYSURU CENTRAL GST COMMISSIONERATE, IIIRD FLOOR, NO. S1 AND S2, GST BHAVAN, VINAYMARGA, SIDDHARTHA NAGAR, MYSURU-570 011. 4. ADDITIONAL COMMISSIONER OF CENTRAL TAX, MYSURU, MYSURU CENTRAL GST COMMISSIONERATE, IIIRD FLOOR, NO. S1 AND S2, GST BHAVAN, VINAYMARGA, SIDDHARTHA NAGAR, MYSURU-570 011. Digitally signed by NANJUNDACHARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:23130-DB WA No. 1069 of 2026 5. ASSISTANT COMMISSIONER OF CENTRAL TAX (HPU), MYSURU MYSURU CENTRAL GST COMMISSIONERATE IIIRD FLOOR, NO.S1 AND S2 GST BHAVAN VINAYAMARGA, SIDDHARTHA NAGAR MYSURU - 570 011. 6. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO 242, HASSAN, SWAMY ARCADE, KUVEMPU NAGARA, MAIN ROAD, HASSAN-573 201. 7. SUPERINTENDENT OF COMMERCIAL TAXES, LGSTO 240, HASSAN, SWAMY ARCADE, KUVEMPU NAGAR, MAIN ROAD, HASSAN-573 201. …APPELLANTS (BY SRI. ARAVIND V CHAVAN, ADV.) AND: M/S. PAVANAPUTRA RESORTS A PROPRIETARY CONCERN, REP. HEREIN BY ITS PROPRIETOR, MR. C.P. DIVAKARA, HAVING ITS REGISTERED ADDRESS AT PLOT NO.114, 116 AND 117, KIADB INDUSTRIAL AREA H N PURA ROAD, HASSAN-573201. …RESPONDENT (BY SRI. SANDEEP HULIGOL, ADV.) THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO A) SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.1979/2025 DATED 17/12/2025 AND B) PASS SUCH OTHER SUITABLE ORDERS. THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE K. V. ARAVIND - 3 - HC-KAR NC: 2026:KHC:23130-DB WA No. 1069 of 2026

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT)

This writ appeal by the Revenue under Section 4 of the Karnataka High Court Act, is directed against the learned Single Judge’s order dated 17.12.2025 in W.P.No.1979/2025 where under the respondent’s writ petition is allowed quashing the common show cause notice issued under Sections 74 of the CGST Act dated 01.08.2023 and Order-in-Original dated 27.12.2024. 2. This Court by order dated 24.04.2026 in W.A.No.1751/2024 and Connected Appeals, allowed the Writ Appeals and restored the show cause notice and Orders in Original. The decision rendered therein would aptly apply to the present appeal also. Since the Order-in- Original is passed in pursuance to the show cause notice under Section 74 of the Act, we deem it appropriate to provide liberty to the respondent herein to file statutory appeal within the time to be prescribed by this Court. HC-KAR NC: 2026:KHC:23130-DB Having regard to the limited power vested in the appellate authority to condone the delay, coupled with the fact that the respondent had been diligently pursuing the remedy by way of writ petition, we deem it appropriate, while relegating the respondent to the statutory remedy of appeal, to grant six weeks' time to file such appeal. If such appeal is filed within the time granted hereinabove, the appellate authority shall consider the same on merits without raising the plea of limitation.

Hence, the following:

ORDER

(i) Writ appeal is allowed.

(ii) The order passed by the learned Single Judge dated 17.12.2025 in W.P.No.1979/2025 is set aside.

(iii) The Order-in-Original dated 27.12.2024 is restored and show cause notice dated 01.08.2023 also stands restored. HC-KAR NC: 2026:KHC:23130-DB (iv) The respondent is provided six weeks time from the day this Order is uploaded on the website of this Court to avail the remedy of statutory appeal.

(v) If the respondent files appeal within the period stated above, the appellants/Revenue shall not raise the question of limitation.

(vi) The Appellate Authority also shall hear the appeal on merits, if the appeal is filed within the time stated above. (S.G.PANDIT) JUDGE (K. V. ARAVIND) JUDGE

MPK CT:bms List No.: 2 Sl No.: 6

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.