BharatTaxGST

M/S Pathways Marketing And Consulting Group vs. Assistant Commissioner Of Commercial Tax

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WP/9669/2026HC KarnatakaGSTCNR KAHC01022078202601 April 2026Bench: S SUNIL DUTT YADAV6 pages
For Petitioner: SRI. PRANAY SHARMA Y., ADVOCATEFor Respondent: SRI. JYOTI M. MARADI., HCGP

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2026:KHC:17829 WP No. 9669 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 9669 OF 2026 (T-RES) BETWEEN: M/S. PATHWAYS MARKETING AND CONSULTING GROUP A PROPRIETORSHIP CONCERN, REPRESENTED BY SMT. RAMALPREET KAUR DAUGHTER OF JASVINDER SINGH KAPOOR, AGED ABOUT 40 YEARS, HAVING OFFICE AT PLOT NO.93, PART-1, SY.NO.72, KIADB INDUSTRIAL AREA PHASE-3, NOSIGARA VILLAGE, KASABA HOBLI, MALUR TALUK, BENGALURU - 563 130, KARNATAKA, GSTIN : 29BGJPK7504F1ZA. …PETITIONER (BY SRI. PRANAY SHARMA Y., ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF COMMERCIAL TAX, LGSTO-180, BINDU BUILDING, NEAR DOME LIGHT CIRCLE, KOLAR - 563 101. 2. JOINT COMMISSIONER OF COMMERICAL TAX (ADMIN), Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:17829 WP No. 9669 of 2026 5TH FLOOR, VTK-2, B BLOCK, KORAMANGALA, BENGALURU - 560 091. 3. COMMERCIAL TAX OFFICER, LGSTO-180, BINDU BUILDING, NEAR DOME LIGHT CIRCLE, KOLAR - 563 101. …RESPONDENTS (BY SRI. JYOTI M. MARADI., HCGP) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSITUTION OF INDIA PRAYING TO QUASHING THE ORDER DATED 04.02.2025 PASSED UNDER SECTION 74(9) OF THE CGST ACT AND CORRESPONDING PROVISIONS OF THE KGST ACT FOR THE TAX PERIOD FINANCIAL YEAR 2017-18 BY THE RESPONDENT NO.1 BEARING NO. ACCT/LGSTO-180/DRC- 07/TRANS-1/2024-25. COPY OF THE ORDER DATED 04.02.2025 PASSED UNDER SECTION 74(9) OF THE CGST ACT, 2017 IS ENCLOSED AND MARKED AS ANNEXURE - A1 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV - 3 - HC-KAR NC: 2026:KHC:17829 WP No. 9669 of 2026

ORAL ORDER Learned High Court Government Pleader accepts notice for the respondents.

2.

The petitioner has sought for setting aside of the order of adjudication dated 04.02.2025 passed under Section 74(9) of the Central Goods and Services Tax Act, 2017, for the financial year 2017-18. The petitioner has also sought for certain allied reliefs as well.

3.

It is the case of the petitioner that the order of adjudication at Annexure-A1 as well as the order of adjudication at Annexure-B1 are ex-parte orders. It is submitted that due to bonafide lapse, the petitioner was not able to make out a reply. It is further submitted that petitioner is in a position to meet the grounds raised in the show-cause notice and accordingly, requests that the order may be set aside and the matter be remitted for fresh consideration, while providing an opportunity to make out reply to the show-cause notice. HC-KAR NC: 2026:KHC:17829

4.

Perused the order at Annexure-A1. The authority has made certain observations relating to excess availing of transactional credit under GST and has proceeded to decide the matter, while observing that the petitioner has failed to supply reply and submit clarifications despite opportunity granted nor has availed the opportunity of personal hearing.

5.

Noticing that the order is in-effect an ex-parte order without benefit of reply as well as noticing the financial hardship that would be caused to the petitioner and the stand that the petitioner would place material to meet the grounds raised in the show-cause notice, it would be appropriate to set aside the order of adjudication at Annexure-A1. 6. Similarly, the order of adjudication at Annexure-B1 also relates to the same petitioner, though on grounds of discrepancy between GSTR-1 vis-à-vis GSTR-3B, learned counsel for the petitioner has raised HC-KAR NC: 2026:KHC:17829 identical contention regarding non-receipt of notice and submits that the petitioner would point out that the discrepancy as noticed does not exist, if an opportunity is granted. Accordingly, taking note of the stand of the petitioner, the order at Annexure-B1 also may be set aside.

7.

Accordingly, the orders at Annexures-A1 and B1 are set aside, noticing that the orders passed are ex-parte orders. Annexures-A2 and B2 are also set aside. Matter is remitted to the stage of reply to show-cause notice. Petitioner to appear before respondent No.1 without further notice on 04.05.2026 and make out reply to the show-cause notice.

8.

The contention of the petitioner that no grounds are made out regarding invoking of Section 74 in the show-cause notice, may be taken note of appropriately and if need arises, the authorities are at liberty to issue a HC-KAR NC: 2026:KHC:17829 corrigendum show-cause notice. All other contentions are kept open.

9.

Accordingly, petition is disposed of. (S SUNIL DUTT YADAV) JUDGE MCR

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.