M/S Vexcolt INDIA Private Limited vs. The Union Of INDIA - Karnataka High Court, 22 July 2026

Cause title — parties, addresses and appearances

- 1 - HC-KAR CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 20637 OF 2026 (T-RES) BETWEEN: M/S VEXCOLT INDIA PRIVATE LIMITED # 897, BTM IV STAGE II BLOCK, IIMB POST, BANNERAGATTA ROAD BENGALURU-560 076 (REPRESENTED BY ITS DIRECTOR, SMT. RASHMI JAIN, REGISTERED UNDER THE PROVISIONS OF THE GOODS AND SERVICE TAX ACT 2007) …PETITIONER (BY SRI. SURYA KANTH C.S., ADVOCATE) AND: 1. THE UNION OF INDIA THROUGH ITS SECRETARY, (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI 110 001 2. THE STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE GOVERNMENT OF KARNATAKA, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026 AMBEDKARVEEDHI, BENGALURU 560 001 3. THE COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), VTK-1, KALIDASA ROAD, GANDHINAGAR, BENGLURU-560 009. 4. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-025, 6TH FLOOR, TTMC BUILDING, 80 FEET ROAD KORAMANGALA, BENGLURU-560 095 …RESPONDENTS (BY SRI. NIRMAL MATHEW, CGSC FOR R1; SRI. K HEMA KUMAR, AGA) THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF DECLARATION OR ANY OTHER APPROPRIATE WRIT OR DIRECTION DECLARING THE PROVISIONS OF SECTION 16(2)(c) AND (d) OF CGST ACT/SGST ACT, 2017, AS BEING ILLEGAL, UNREASONABLE, ARBITRARY AND DISCRIMINATORY AND THEREFORE TO BE STRUCK DOWN AS VIOLATIVE OF ARTICLE 14, 19 AND 300A OF THE CONSTITUTIONAL OF INDIA IN SO FAR AS THE PETITIONER IS CONCERNED. B) ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT QUASHING THE IMPUGNED ORDER BEARING NO. CTO/(P)/LGSTO-25/DRC-07/2VS3B/2024-25 DATED 07/05/2024 ISSUED IN FORM DRC-07 FOR THE - 3 - HC-KAR CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026 PERIOD APRIL 2019 TO MARCH 2020 PASSED UNDER SECTION 73 OF KGST 2017 AND CGST ACT, 2017 ISSUED BY THE FOURTH RESPONDENT AT ANNEXURE- F (DOWNLOADED COPY) AS VIOLATIVE OF ARTICLES 14, 19 AND 300A BEING UNREASONABLE, ARBITRARY, OPPRESSIVE, EXCESSIVE AND PREMEDITATED. C) ISSUE WRIT OF MANDAMUS OR WRIT IN THE NATURE OF MANDAMUS, DIRECTING THE RESPONDENT NO.4 TO ALLOW THE ITC TO THE EXTENT CLAIMED BY THE PETITIONER IN GSTR 3B RETURNS. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER The petitioner's grievance is with the Adjudication Order under Section 73 of the Karnataka Goods and Services Tax Act/Central Goods and Services Tax Act, 2017 [for short, 'the Act']. The petitioner has not produced the reasoned order but has produced the Summary of the Order in Form GRT DRC-07 [Annexure-F]. The proceedings are HC-KAR

CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026

initiated on the grounds that there is mismatch between Form GSTR -2A and Form GSTR-3B and the proceedings are for the assessment year 2019-20. The petitioner asserts that it is not served with the Show Cause Notice and insofar as delay in filing this petition on the ground of lack of due opportunity, the petitioner has stated that only upon verification through the Auditor the petitioner could ascertain about the concluded proceedings. The petitioner has called in question the vires of Section 16(2)(c) and (d) of the Act, but Sri. C.S. Surya Kanth, the learned counsel for the petitioner, is categorical in stating that the petitioner does not propose to continue the grievance with the statutory provisions and he would only argue for remand with an opportunity to show cause with the fourth respondent that there is no mismatch between the details in the Form GSTR-2A and Form GSTR-3B and that what is pointed out as HC-KAR

CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026

missed out in Form GSTR-2A is actually part of such form. Sri K. Hema Kumar, the learned Additional Government Advocate for the second to fourth respondents, and Sri Nirmal Mathew, the learned Central Government Standing Counsel fort he first respondent, are heard in the light of these circumstances. Sri K Hema Kumar submits that this Court must consider that the petitioner has approached this Court after two years and without availing the appellate remedy and that if the petitioner has availed appellate remedy, it had to deposit 10% of the demand.

These submissions are examined to determine whether the petitioner must be extended with an opportunity. The petitioner's specific case is that it is not served with the Show Cause Notice or with the Adjudication Order and what is uploaded as verified HC-KAR

CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026

through the Auditor is only the Summary of the Order as per Annexure-F. Crucially, the petitioner asserts that there is no mismatch and the details in the Form GSTR-2A and the alleged mis-transaction is also reflected. In the light of these circumstances, the question is answered in favour of the petitioner and the following: ORDER The petition is allowed quashing the impugned Order dated 07.05.2024 [Annexure-F] subject to the following terms. [a] The proceedings are restored to the fourth respondent for due consideration subject to deposit of 10% of the demand by 12.10.2026 subject to the outcome in the restored proceedings. HC-KAR

CNR: KAHC010453792026 NC: 2026:KHC:37598 WP No. 20637 of 2026

[b] The petitioner is permitted to file, along with the certified copy of this order, copies of the documents to show the genuineness of the transactions

[c] The petitioner shall produce these documents by 12.10.2026 and the fourth respondent shall consider these documents and then conclude the proceedings by a reasoned order. (B M SHYAM PRASAD) JUDGE

SA Ct:sr