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M/S. Mrf Limited vs. The Deputy Commissioner Of Commercial Taxes (Audit)-

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WP/27385/2024HC KarnatakaGSTCNR KAHC01055791202424 November 2025Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. ABHISHEK BOOB, RAJITH NAIR AND SRI. ADHIRA RAJESH MENON, FOR SRI. ABHINAY V., ADVOCATESFor Respondent: SMT. JYOTI M. MARADI, HCGP FOR R1 TO R3; SRI. B.G. KUSHALAPPA, CGSC/ADVOCATE FOR R4

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:48818 WP No. 27385 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 27385 OF 2024 (T-RES) BETWEEN: M/S. MRF LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, BEARING CIN L25111TN1960PLC004306 HAVING ITS PRINCIPAL PLACE OF BUSINESS UNDER GST, IN KARNATAKA, AT 2ND FLOOR, EMPIRE INFANTRY, NO. 29 INFANTRY ROAD, BENGALURU, KARNATAKA – 560 001 REPRESENTED BY ITS AUTHORISED REPRESENTATIVE, MR. VIJO PAUL, OFFICE MANAGER …PETITIONER (BY SRI. ABHISHEK BOOB, RAJITH NAIR AND SRI. ADHIRA RAJESH MENON, FOR SRI. ABHINAY V., ADVOCATES) AND: 1. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)- 1.10, DGSTO-01, 5TH FLOOR, BMTC BUS STOP, TTMC COMPLEX, YASHWANTAPUR, BENGALURU – 560 022 2. THE COMMISSIONER O F COMMERCIAL TAXES OFFICE OF COMMERCIAL TAXES-1, 1ST FLOOR, GANDHINAGAR, BENGALURU – 560 009 3. THE STATE OF KARNATAKA REPRESENTED THROUGH ITS FINANCE SECRETARY, VIDHANA SOUDHA, BENGALURU – 560 001 Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:48818 WP No. 27385 of 2024 4. UNION OF INDIA, REPRESENTED THROUGH ITS SECRETARY (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI – 110 001 …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP FOR R1 TO R3; SRI. B.G. KUSHALAPPA, CGSC/ADVOCATE FOR R4) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER, DATED 22.07.2024, BEARING REFERENCE NO. ZD2907240709411, PASSED BY RESPONDENT NO.1 (ANNEXURE-A). THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:- “(1) Quash the Impugned Order, dated 22.07.2024, bearing Reference No.ZD2907240709411, passed by Respondent No.1 (Annexure-A); (2) Grant such other relief/s as this Hon’ble Court deems fit to pass in the facts and circumstances of this case, in the interest of justice and equity.”

2.

Heard the learned counsel for the petitioner and the learned HCGP for respondent Nos.1 to 3 and learned CGSC for respondent No.4 and perused the material on record. HC-KAR NC: 2025:KHC:48818

3.

A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods April, 2019 to March, 2020. The Respondent initiated proceedings u/s. 73 of the Act CGST/KGST Act, 2017 and issued intimation notice to the Petitioner to file reply. Subsequently, the 1st respondent issued show-cause notice dated 06.05.2024 in Form GST DRC-01A, calling for explanation with regard to excess claim of ITC, short declaration of output under 28% slab and misclassification of rate of tax. The Petitioner filed its replies dated 07.05.2024 and 05.06.2024 to the aforesaid show-cause notice. Pursuant to the same, the respondent without properly considering the replies filed by the Petitioner proceeded to pass the impugned order at Annexure-A dated 22.07.2024, which is assailed in the present petition.

4.

Learned counsel for the petitioner submits that the Petitioner had filed its reply to the show-cause notice dated 07.05.2024 and 05.06.2024 and the respondent without properly considering the said reply has passed the impugned order at Annexure-A dated 22.07.2024 and the impugned orders deserve to be quashed and the matter may be remitted back to the concerned HC-KAR NC: 2025:KHC:48818 respondent for reconsideration of the matter afresh, in accordance with law by directing the respondents to properly consider the replies filed by the petitioner and thereafter, proceed further to pass appropriate orders.

5.

Per contra, learned HCGP and learned CGSC for respective respondents would support the impugned order and submit that there is no merit in the petition and the same is liable to be dismissed.

6.

A perusal of the material on record including the impugned orders will indicate that it is an undisputed fact that the petitioner filed its replies to the show-cause notice and the impugned order have been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to properly consider the replies filed by the petitioner to the show-cause notice, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions. HC-KAR NC: 2025:KHC:48818

7.

In the result, I pass the following: ORDER i) The Writ Petition is allowed;

ii) The impugned order passed by the 1st respondent at Annexure-A dated 22.07.2024 is hereby set aside; iv) The 1st respondent is directed to consider the replies dated 07.05.2024 and 05.06.2024 filed by the petitioner and thereafter, proceed further in accordance with law. v) The petitioner is at liberty to submit additional reply/ documents and upon the petitioner submitting additional reply along with relevant documents the 1st respondent shall afford a reasonable opportunity of personal hearing to the petitioner and hear him and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 2 Sl No.: 92

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.