M/S Vasavi Telecommunications vs. State Of Karnataka

Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.

The limited grievance of the petitioner in the present petition is that insofar as the tax period/assessment year 2019-20 is concerned, the respondent No.3 passed an order dated 23.08.2024 at Annexure-C despite which, the respondent No.2- Assistant Commissioner has proceeded to pass the impugned order at Annexure - E dated 28.08.2024 for the very same tax period/assessment year and as such, the said adjudication order at Annexures - E and F deserve to be quashed. HC-KAR NC: 2025:KHC:39808

Per contra, learned AGA for respondent submits that the impugned order at Annexure-E dated 28.08.2024 has been rectified by stating that the same is in consonance with the earlier order dated 23.08.2024 passed by the respondent No.

The said rectification of adjudication order dated 08.10.2025 produced by the learned AGA is as under: "GOVERNMENT OF KARNATAKA (DEPARTMENT OF COMMERCIAL TAXES) Office of the Assistant Commissioner of Commercial Taxes, LGSTO - 152. No.80/8, 2nd Floor Samaya Tower, Kogigehalli Main Road, Tata Nagar, Bangalore - 560092. Ph No.080-23470450 Email Id: ac152.bng@ctd.ka.gov.in No.: ACCT/LGSTO-152/Rectification Order/2025-26 Date 08-10-2025 1 Name & Address of the Taxpayer Chalamaiah Setty Avinash M/s. Vasavi Telecommunications 1148, 1st Floor, 16th B Cross Road, Yelahanka New Town, 560064. 2 GSTIN No./JDN & LGSTO 29ATSPA4757D1ZG, "STATE" Juri iction LGSTO-152, Bengaluru 3 Status of Taxpayer Proprietorship 4 Sector Electrical Machinery And Equipment And Parts 5 Nature of Business Retail Business 6 Period April 2019 to March-2020 7 Assignment No. and Date 1173/2024-25/Dated 08-05-2024

In response to DRC-01A issued on 09-05-2024, the Taxpayer has neither replied nor discharged the Liability.

Hence, As per the provisions of the Section 73(1) of the CGST Act, 2017/KGST Act, 2017 Show Cause Notice in form GST DRC-01, dated 20-05-2024 was issued and served to the Taxpayer through registered email-Id provided in the registration. In the said Show Cause Notice the taxable person was called upon to file objections if any to the proposals of levy of tax, interest and penalty within 30 days of service of notice.

In response to DRC-01, the Taxpayer has neither replied nor discharged the applicable liability.

The registered Taxable person was also intimated in Endorsement through register e-mail on dated: 17-07- 2024 and 24-07-2024 to file or to submit reply to this office. HC-KAR NC: 2025:KHC:39808

Accordingly, the Adjudication order was passed u/s 73 Dated: 28-08-2024 and the tax, interest and Penalty liability concluded in the order is as below: Particulars IGST CGST SGST TOTAL Short payment of Tax in GSTR9 506 381549 381549 763604 Interest Payable 481 362398 362398 725277 Penalty Payable 20000 38155 38155 96310 Total Payable (Tax + Interest + Penalty) 1585191

In response to DRC-07, the Taxpayer had not discharged the tax liability. Hence, Recovery action was initiated from this office, After initiation of the recovery action, the Taxpayer had filed writ petition vide No.: 20863/2025 Dated: 14.07.2025 stating that for the same issue two Orders has been Concluded by ACCT, LGSTO-152 and CTO, LGSTO-152. 11. On verifying the same it was Observed that ACCT, LGSTO-152 had concluded order for Short discharging of tax liability if GSTR9 compared with GSTR3B and CTO, LGSTO-152 had concluded the order for Short declaration of Tax liability in GSTR3B compared with the one declared in GSTR1. 12. Anyhow, the issue is found to be slightly different and hence, the liability. In GTR3B the Taxpayer had short declared the tax liability of which order was concluded by CTO, LGSTO-152. Whereas, as per the tax declared and taxes paid in GSTR9, the taxpayer had short declared the Tax liability of Rs.506/- under IGST, Rs.381549/- under SGST and Rs.381549/- under CGST.

In response to DRC-01 issued by the CTO, LGSTO- 152, the Taxpayer had discharged the Tax liability of Rs.505 under IGST through DRC-03 vide ARN: AD290724036168S dated: 30-07-2024. Considering the same, CTO, LGSTO-152 had concluded order only for interest and Penalty on 23-08-2024. 14. The short declared tax liability as per the Adjudication Orders concluded by ACCT, LGSTO-152 and CTO, LGSTO-152 is found to be of Same valued, Rectification of only the values pertaining to IGST is to HC-KAR NC: 2025:KHC:39808 be done by the Undersigned for the FY: 2019-20. The same was also intimated to the taxpayer through an endorsement Dated: 25-09-2025. 15. Accordingly, on the principles of Natural justice, the undersigned is hereby rectifying the Liabilities pertaining to IGST as the same has been covered by CTO, LGSTO-152. Hence, as a principles of natural Justice, the undersigned is hereby rectifying the said Order, dated: 28-08-2024. Based on these facts, rectified demands are as below table: Particulars IGST CGST SGST TOTAL Tax Liability after consideration of the Reply 0 381549 381549 763098 Interest Payable 0 362398 362398 724796 Penalty Payable 0 38155 3815 76310 Total Payable 0 782102 782102 1564204

In view of the aforesaid facts and circumstances and the rectification of adjudication order dated 08.10.2025, which was passed during the pendency of the present petition, the impugned HC-KAR NC: 2025:KHC:39808 order at Annexure - E and impugned demand at Annexure - F deserve to be quashed.

In the result, I pass the following: ORDER