BharatTaxGST

M/S Hotel Royal Suits vs. The State Of Karnataka

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WP/6543/2026HC KarnatakaGSTCNR KAHC01014941202627 February 2026Bench: S SUNIL DUTT YADAV4 pages
For Petitioner: SRI. BAPAT SAMPATH, ADVOCATEFor Respondent: SRI. K. HEMAKUMAR, AGA

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Before: SMT. C. LAKSHMI. DR. B.R.AMBEDKAR VEEDHI,

Sri. K. Hemakumar, learned Additional Government Advocate accepts notice for the respondents.

2.

The petitioner has assailed the validity of the order of adjudication at Annexure-D passed under Section 73(9) of the Karnataka Goods and Services Act, 2017. The authority has proceeded on the premise that the taxpayer has short declared the tax liability.

3.

A perusal of the order of adjudication would reveal that the authority has asserted that though there has been communication of the notices including recovery proceedings, the petitioner having failed to reply, the authority has proceeded to adjudicate the matter on the available material.

4.

Learned counsel for the petitioner submits that the non-reply of the show-cause notice was due to bona-fide lapse and the petitioner has the material to demonstrate and meet the grounds raised in the show-cause notice. HC-KAR NC: 2026:KHC:12167 WP No. 6543 of 2026

5.

Noticing that the order passed is in-effect an ex-parte order, in the sense that the authority did not have benefit of a reply to the show-cause notice, it would be appropriate to set aside the order and remit the matter back for consideration on merits and it would be appropriate to enable the petitioner to make out reply to the show-cause notice.

6.

Accordingly, the order at Annexure-D is set aside. Matter is remitted to the stage of reply to show-cause notice. Petitioner to appear before respondent No.5 without further notice on 25.03.2026. Petitioner to make payment of 10% of the tax due. Such payment would be subject to adjudication to be made.

7.

It is made clear that, if the petitioner fails to take benefit of opportunity granted, the indulgence granted by this Court will stand revoked. All contentions are kept open. 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.