Bangalore Datacom Private Limited vs. The State Of Karnataka

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WP/10134/2022HC KarnatakaGSTCNR KAHC01021750202219 November 2025Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI. VIDYA SHANKAR.S, ADVOCATEFor Respondent: SMT. JYOTI.M.MARADI, HCGP

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:47967 WP No. 10134 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10134 OF 2022 (T-RES) BETWEEN: BANGALORE DATACOM PRIVATE LIMITED A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 NO.789, 4TH CROSS, 11TH BLOCK NAGARABHAVI 2ND STAGE BANGALORE -560 072. REP BY ITS DIRECTOR SRI R SUKUMARAN S/O E RAMANKUTTY AGED ABOUT 56 YEARS. …PETITIONER (BY SRI. VIDYA SHANKAR.S, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE VIDHANA SOUDHA BANGALORE -560 001 REP BY ITS SECRETARY. 2. THE COMMERCIAL TAX OFFICER- (ENF) 57 SOUTH ZONE VANIJYA TEREGE KARYALA-2 KORMANAGALA BANGALORE -560 047. …RESPONDENTS (BY SMT. JYOTI.M.MARADI, HCGP) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION BY DECLARING THAT THE ACTIONS OF THE 2ND RESPONDENT IN COLLECTING THE SAID IMPUGNED TAX AND PENALTY IS WITHOUT THE AUTHORITY OF LAW AND IN VIOLATION OF ARTICLE 265 OF THE CONSTITUTION OF INDIA. CONSEQUENTLY, THE SAID IMPUGNED PROCEEDINGS AGAINST THE PETITIONER U/S 129(1) IS NULL AND VOID. Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:47967 WP No. 10134 of 2022 THIS PETITION, COMING ON FOR ORDERS, 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:-

“ (a) Issue an appropriate Writ or direction, by declaring that the actions of the 2nd Respondent in collecting the said impugned tax and penalty is without the authority of law and in violation of Articles 265 of the Constitution of India. Consequently , the said impugned proceedings against the Petitioner U/s 129(1) is null and void, in the interest of justice and equity.

(b) Direct the 2nd Respondent to refund the sum of Rs.1,74,240/- to the Petitioner, extracted by him as an impugned tax under CGST and the SGST Acts, along with the O.D rate of interest at 8.5%P.A, incurred by the petitioner to its banker to pay the impugned tax, starting from 29/09/2021 till such date the 2nd Respondent refunds the petitioner the said sum, extracted as a tax, in the interest of justice and equity.

(c) Direct the 2nd Respondent to refund the sum of Rs.1,74,240/- to the petitioner, extracted by him as an impugned penalty under CGST and the SGST Acts, along with the O.D rate of interest at 8.5%P.A, incurred by the petitioner to its banker to pay the impugned penalty, starting from 29/09/2021 till such date the 2nd Respondent refunds HC-KAR NC: 2025:KHC:47967 the petitioner the said sum, extracted as a tax, in the interest of justice and equity.

(d) Pass such other order or orders as the Hon’ble Court may deem fit and proper in the circumstances of the case and in the interest of justice.”

2.

A perusal of the material on record will indicate that in pursuance of the subject vehicle belonging to the petitioner having been intercepted and seized by the respondents, the proceedings under Section 129 of the KGST Act was initiated by the respondents, who issued the show cause notice at Annexure-R1 dated 29.09.2021, to which the petitioner did not submit any reply/response, as a result of which, the respondents proceeded to pass the impugned order at Annexure-R2 dated 29.09.2021, which was issued to the driver of the petitioner, who did not file any reply resulting in an order dated 29.09.2021 passed by the respondents confirming the demand made in the impugned show cause notice. Under these circumstances, the petitioner is before this Court by way of the present petition.

3.

Heard learned counsel for the petitioner and learned HCGP for the respondents – revenue and perused the material on record. HC-KAR NC: 2025:KHC:47967

4.

A perusal of the impugned order at Annexure-R2 dated 29.09.2021 will indicate that the same is an ex-parte order and the petitioner has not submitted any reply to the said show cause notice as can be seen from paragraph-2 of the impugned order. Under these circumstances, the matter be remitted back to the concerned respondents for reconsideration afresh bearing in mind the Circular No.128/47/2019-GST dated 23.12.2019 and the judgment of this Court in the case of M/s.BVM Trans Solutions Private Limited vs. Commercial Tax Officer & others – W.P.No.5465/2025 dated 17.11.2025. 5. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The show cause notice at Annexure-R1 dated 29.09.2021 issued by the 2nd respondent is hereby quashed and the order at Annexure-R2 dated 29.09.2021 passed under Section 129(3) of the CGST/KGST Act by the 2nd respondent is hereby set aside. (iii) The matter is remitted back to the 2nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the show cause notice dated HC-KAR NC: 2025:KHC:47967

29.09.

2021 issued under Section 129(3) of the CGST/KGST Act, 2017 at Annexure – R1. (iv) The petitioner is directed to appear before the 2nd respondent on 15.12.2025 without awaiting further notice from the 2nd respondent.

(v) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 2nd respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (vi) Liberty is reserved in favour of the petitioner to urge all contentions before the 2nd respondent. (vii) In the event, the petitioner does not appear before the 2nd respondent on 15.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

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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.