M/S Gyan And Gigs Consulting LLP vs. The Union Of INDIA
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The petitioner, M/s Gyan and Gigs Consulting LLP, formerly VLS Consulting LLP, filed a writ petition challenging an Order-In-Original (No. 13/2025-26(ST-JC) and No.GEXCOM/ADJN/ST/JC/1653/2021-ADJN) dated August 28, 2025, and issued on September 17, 2025. This order pertains to the tax periods of 2016-17 and 2017-18 up to June 2017. The order was passed by the Joint Commissioner of Central Tax, Bengaluru GST South Commissionerate. The petitioner sought to quash this order and sought directions for the respondent to consider input tax credit against output tax and taxes paid. The respondents are the Union of India, the Principal Chief Commissioner of Central Tax, Bengaluru South Commissionerate, and the Joint Commissioner of Central Tax, Bengaluru GST South Commissionerate.
Held
The High Court of Karnataka, in its order dated November 26, 2025, disposed of the writ petition by following the judgment of a Co-ordinate Bench in M/s. Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax (WP No.11154/2023 & connected matters dated 03.07.2024). The Court held that Orders-In-Original challenged in writ petitions stand set aside and the matters are relegated to the designated officers to be reconsidered from the stage of the show-cause notice. The petitioners are at liberty to file their pleadings within a reasonable time fixed by the concerned officers. Consequently, the impugned Order-in-original at Annexure – G dated 17.09.2025 passed by the third respondent was quashed. The matter was remitted back to the third respondent to the stage of post show cause notice to proceed further in accordance with law. The ratio decidendi is that challenges to Orders-In-Original under GST, where procedural irregularities or other grounds warrant reconsideration, should be remanded to the appropriate authority for fresh consideration from the show-cause notice stage, following established precedent.
Key Issues
1. Whether the impugned Order-In-Original No. 13/2025-26(ST-JC) & No.GEXCOM/ADJN/ST/JC/1653/2021-ADJN dated 28/08/2025, issued on 17/09/2025, for the years 2016-17 and 2017-18 up to June 2017, passed by the Third Respondent, is liable to be quashed? Petitioner's Contention: The petitioner sought to quash the Order-In-Original and sought a writ of mandamus directing the Third Respondent to consider the input tax claimed against the output tax and the taxes paid. Revenue's Contention: The judgment does not explicitly record any specific contentions raised by the respondents. However, the context implies that the respondents defended the impugned order.
Sections Cited
None explicitly mentioned in the provided text, other than general reference to "Order-In-Original" and "show cause notice" stages.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER In this petition, the petitioner seeks the following reliefs: "i) Issue a writ of certiorari, or Writ of Certiorari quashing the impugned Order-In-Original No 13/2025-26(ST-JC) & no.GEXCOM/ADJN/ST/JC/1653/2021-ADJN date of HC-KAR NC: 2025:KHC:49095 passing order:28/08/2025 & date of Issue:17/09/2025 for the year 2016-17 & 2017-18 up to June 2017 passed by Third Respondent at Annexure - "G". ii) Issue Writ of mandamus or Writ in the nature of mandamus directing the Third Respondent to consider the input tax claimed as against the out put tax and also the taxes paid iii) Issue any other Writ or Directions deemed fit, in the facts and circumstances of the case, including the cost of the Writ Petition, in the interest of justice and equity."
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in the case of M/s.Karnataka Chinmaya Seva Trust Vs. Joint Commissioner of Central Tax in WP No.11154/2023 & connected matters dated 03.07.2024, wherein it was held as under; "
Accordingly, the following: ORDER In light of observations made above, the writ petitions relating to challenge to show-cause notice, such HC-KAR NC: 2025:KHC:49095 matters will stand relegated to the officers to be designated in terms of the observations made in para 8 above, at the same stage. Accordingly, such of the petitions at Sl.No.1 to 5 in Column No.1 of the table relating to challenge to show-cause notice are disposed off. Insofar as such writ petitions as detailed in Column 2 of the table relating to challenge to Orders-in-Original, in light of the discussion made above, the Orders-in-Original stand set aside and the matters are relegated to the Officers to be designated to be reconsidered from the stage of show-cause notice. Accordingly, such of the petitions at Sl.No.1 to 35 in Column No.2 of the table relating to challenge to Orders-in-Original are disposed off. The petitioners who are now relegated before the authorities concerned are at liberty to file their pleadings within a reasonable time as may be fixed by the Officers concerned. Wherever the matters are pending in appeal in light of the arrangement that is made, petitioners to file a memo for withdrawal of appeal and accordingly, the orders-in-original in question would also receive the same treatment, i.e. be set aside as per the directions made above. Wherever demands have been made pursuant to the impugned orders, such proceedings are also set aside."
Under these circumstances, the present petition is also disposed of in terms of the aforesaid judgment of the Co-ordinate Bench of this Court. HC-KAR NC: 2025:KHC:49095
Accordingly, the impugned Order-in-original at Annexure – G dated 17.09.2025 passed by the third respondent is hereby quashed.
The matter is remitted back to the third respondent to the stage of post show cause notice and to proceed further in accordance with law.
Ordered accordingly. (S.R.KRISHNA KUMAR) JUDGE SJK List No.: 2 Sl No.: 14
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.