M/S Daivik Developers vs. State Of Karnataka
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Before: SHRI.K VASUDEVA SHETTY
Learned High Court Government Pleader accepts notice for respondents 1 to 3. 2. It is the case of the petitioner that an order of adjudication came to be passed by respondent No. 3 on HC-KAR NC: 2026:KHC:20815
2025. It is submitted that the petitioner preferred first appeal and while doing so, petitioner is stated to have deposited the entirety of the disputed tax amount of Rs.28,84,680/-. It is further submitted that the first appellate authority dismissed the appeal filed by the petitioner on 15.10.2025. Petitioner submits that thereafter recovery notice has been issued.
Learned counsel for the petitioner would submit that the entirety of the tax liability has been cleared as is evident from the entries in the Electronic Liability Ledger at Annexure-E. Attention is drawn to the entries on 13.02.2025 and 28.04.2025. It is submitted that both CGST and SGST tax demand have been cleared and what would remain is only interest and penalty. It is further submitted that this aspect is further clarified by virtue of the contents in Form GST APL-01. 4. It is the case of the petitioner that he is entitled for time till 30.06.2026 to file the appeal before the HC-KAR NC: 2026:KHC:20815 Tribunal and in light of petitioner having cleared the entirety of tax demand, the authorities could not have taken steps for recovery.
Learned counsel for the petitioner submits that in terms of the representation at Annexure-H, petitioner had made it clear that once the filing window for the impugned order is enabled, he would file an appeal.
Learned High Court Government Pleader submits that the aspect of payment is a matter for confirmation upon instructions.
It is to be noticed that insofar as the intention to file the appeal, in terms of Annexure-H petitioner has made his intention of filing appeal clear. The entries in the Electronic Liability Ledger, prima facie indicates that tax component which is the subject matter of order in the first appeal has been cleared. If that were to be so, in terms of Section 112(9) of the CGST Act, there cannot be any steps for recovery. Recovery would stand stayed. HC-KAR NC: 2026:KHC:20815
Accordingly, Form GST DRC-13 at Annexures-A and B are set aside. Needless to state, petitioner is to file an appeal in terms of his undertaking and in the event of any discrepancy regarding payment made as regards tax component, liberty is reserved to the revenue to move for further orders. In light of the same, any steps for recovery if initiated stand rescinded.
Issuance of notice to respondents 4 and 5 - Bank is waived in light of disposal of the petition relegating the petitioner to file an appeal in terms of his undertaking.
Accordingly, petition is disposed of. (S SUNIL DUTT YADAV) JUDGE VP
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.