The Additional Commissioner Of Central Tax vs. M/S Madikeri Construction Private Limited

WA/933/2026HC KarnatakaGSTCNR KAHC01020296202624 April 2026Bench: S.G.PANDIT,K. V. ARAVIND5 pages

For Respondent: SRI. VENKATESH G., ADV

AI SummaryAllowed

Facts

The Revenue appealed against a Single Judge's order that allowed the respondent's writ petition, quashing show cause notices issued under Section 74 of the CGST Act and the subsequent Order-in-Original. The Single Judge's decision effectively nullified the tax demand and proceedings.

Held

The Division Bench, relying on its decision in connected appeals, set aside the Single Judge's order, thereby restoring the show cause notices and the 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.

Key Issues

The key issue was the validity of the Single Judge's order quashing the show cause notices and Order-in-Original issued under Section 74 of the CGST Act, and whether the respondent should be relegated to the statutory appellate remedy.

Sections Cited

Section 74

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WA No. 933 of 2026

WP NO.32453/2025

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2026:KHC:23104-DB WA No. 933 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. 933 OF 2026 (T-RES) BETWEEN: 1. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX GST COMMISSIONERATE S1 & S2, VINAYA MARGA SIDDHARTHA NAGAR, MYSURU-570011. 2. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, AUDIT CIRCLE-1, MYSURU AUDIT COMMISSIONERATE S1 & S2, VINAYA MARGA, SIDDHARTHA NAGAR, MYSURU-570011. 3. SUPERINTENDENT OF CENTRAL TAX GROUP-II, AUDIT CIRCLE-1, GST AUDIT COMMISSIONERATE, MYSURU S1 & S2, VINAYA MARGA, SIDDHARTHA NAGAR, MYSURU-570011. …APPELLANTS (BY SRI. ARAVIND V CHAVAN, ADV.) AND: M/S. MADIKERI CONSTRUCTION PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 REPRESENTED BY ITS MANAGING DIRECTOR SRI. JAGADISH RAI B.D. NO.74, INDUSTRIAL SHED, WHITE HOUSE, Digitally signed by NANJUNDACHARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:23104-DB WA No. 933 of 2026 NEAR SUDARSHAN GUEST HOUSE, BEHIND MUNESHWARA TEMPLE, JAYANAGAR, MADIKERI-571201 REGISTERED UNDER GST ACT WITH GSTIN-29AANCM4592M1ZJ. …RESPONDENT (BY SRI. VENKATESH G., ADV.) THIS WRIT APPEAL 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.32453/2025 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

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.32453/2025 where under the respondent’s writ petition is allowed quashing the common show cause notices issued under Section 74 of the CGST Act dated 16.05.2024 and 23.09.2024, Summary of show cause HC-KAR NC: 2026:KHC:23104-DB notice dated 02.08.2024, Summary of Orders dated 01.08.2025 and Order-in-Original dated 30.07.2025. 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. 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 HC-KAR NC: 2026:KHC:23104-DB 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.32453/2025 is set aside.

(iii) The Order-in-Original dated 30.07.2025 is restored and show cause notices dated 16.05.2024 and 23.09.2024 also stands restored.

(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. HC-KAR NC: 2026:KHC:23104-DB (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.: 33

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.