M/S. Chetan Infra Projects vs. The Joint Commissioner Of Commercial Taxes

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WP/16634/2026HC KarnatakaGSTCNR KAHC01036940202617 June 2026Bench: B M SHYAM PRASAD5 pages
For Petitioner: SRI. HALESHA R. GAVIMATH., ADVOCATEFor Respondent: SRI. K. HEMA KUMAR, AGA
AI SummaryAllowed

Facts

The petitioner failed to respond to a show cause notice, leading to an ex parte adjudication order. The petitioner claims bona fide reasons for non-participation and seeks an opportunity to file a reply and demonstrate reconciliation between GSTR-3B and GSTR-7 returns.

Held

The Court quashed the ex parte adjudication order and restored the proceedings. The petitioner was directed to appear before the adjudicating authority and file a reply with necessary documents.

Key Issues

Whether the petitioner should be granted an opportunity to file a reply to the show cause notice and present their case, despite an ex parte order being passed.

Sections Cited

Section 73

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2026:KHC:29825 WP No. 16634 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 16634 OF 2026 (T-RES) BETWEEN: M/S. CHETAN INFRA PROJECTS NEAR HOUSING BOARD, NO.139, SY NO.231/1, MUTHANALLUR CROSS, DOMMASANDRA, BANGALORE, BENGALURU URBAN, KARNATAKA - 562125. REPRESENTED BY ITS PROPRIETOR, B. SREENIVASULA REDDY S/O VENKATA REDDY., AGED ABOUT 42 YEARS. …PETITIONER (BY SRI. HALESHA R. GAVIMATH., ADVOCATE) AND: 1. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-4, NO. 640, 6TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU - 560 095. Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:29825 WP No. 16634 of 2026 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-4.1, DVO-4, 5TH FLOOR, BMTC BUILDING, KORAMANGALA, BANGALORE - 560 095. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASHING THE IMPUGNED ADJUDICATION

ORDER NO.ACCT(A)- 4.1/DGSTO-4/DRC-07/07/2025-26 AND REFERENCE NO. ZD290725023142K DATED 07.07.2025 ANNEXURE-B, PASSED BY THE RESPONDENT NO. 2; B) QUASHING THE IMPUGNED ORDER OF APPEAL NO.GST-AP.656/2025-26 REJECTED ORDER NO. ZD290126078163B DATED 06.01.2026-ANNEXURE-D, PASSED BY THE RESPONDENT NO. 1; C) IN THE ALTERNATIVE TO PRAYER (A), ISSUE A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION, DIRECTING THE RESPONDENT NO. 1 TO TAKE THE PETITIONERS APPEAL NO.GST- AP.656/2025-26 REJECTED ORDER NO. ZD290126078163B DATED 06.01.2026-ANNEXURE-D, ON RECORD AND ADJUDICATE THE SAME ON ITS MERITS IN ACCORDANCE WITH LAW, AFTER AFFORDING A HC-KAR NC: 2026:KHC:29825 REASONABLE OPPORTUNITY OF HEARING TO THE PETITIONER.

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 short question for consideration is: whether this Court must interfere with the adjudication order under Section 73 of the Karnataka Goods and Services Tax Act, 2017 [for short the 'KGST Act'] and the concurrent provisions of the Central Goods and Services Tax Act, 2017 [for short the 'CGST Act']. The adjudication order is dated 07.07.2025 [Annexure-B] and it is an ex parte order.

The adjudicating authority [the second respondent] is categorical in recording that the petitioner has not filed a response to the Show Cause Notice. Sri Halesha R.G., the learned counsel for the petitioner, while pleading bona fides for non-participation in the proceedings, asserts that the HC-KAR NC: 2026:KHC:29825 petitioner's grievance would be redressed if it is extended an opportunity to file reply because the petitioner can demonstrate that there would be no reason for the proceedings on the ground that there is a mismatch between the returns filed in GSTR-3B and GSTR-7. The learned counsel emphasizes that the petitioner can produce documents to demonstrate reconciliation between the two.

Sri K. Hema Kumar, the learned Additional Government Advocate, is heard. This Court in the circumstances is of the view that the petitioner, without being entitled to raise a ground on the consolidated Show Cause Notice issued for two tax periods, must file a reply with documents in the light of the submissions now being made. In the light of the afore, the following ORDER The petition is allowed quashing the adjudication order dated 07.07.2025 [Annexure-B] and restoring the proceedings to the second respondent. The petitioner shall, HC-KAR NC: 2026:KHC:29825 without further notice, appear before the second respondent on 13.07.2026 and file a reply with all necessary documents. (B M SHYAM PRASAD) JUDGE

NV List No.: 3 Sl No.: 22

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.