M/S. Vasundara Builders And Developers vs. The Assistant Commissioner Of Central Tax - Karnataka High Court, 20 January 2026

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2026:KHC:3114 WP No. 9470 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 9470 OF 2025 (T-RES) BETWEEN: M/S. VASUNDARA BUILDERS AND DEVELOPERS A PARTNERSHIP FIRM, (UNDER REGISTERED NDIAN PARTNERSHIP ACT 1932) NO. 4, 1ST FLOOR, GOPALAKRISHNA COMPLEX, VASANTHUPURA MAIN ROAD, SUBRANYAPURA, UTTARAHALLI HOBLI, BANGALORE, KARNATAKA - 560 061, (GSTIN NO. 29AALFV3786B1ZR) REPRESENTED BY ITS PARTNER MR. CHIKKAPUTTAIAH S/O LATE KEMPAIAH AGED ABOUT 53 YEARS. …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI., ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF CENTRAL TAX WEST DIVISION - 6, BANGALORE, TTMC COMPLEX, 1ST FLOOR, BMTC BUS STAND, BANASHANKARI, BANGALORE - 560 070. 2. THE DEPUTY COMMISSIONER OF CENTRAL TAX, WEST DIVISION - 6, BANGALORE, TTMC COMPLEX, 1ST FLOOR, BMTC BUS STAND, BANASHANKARI, BANGALORE 560 070. …RESPONDENTS (BY SRI. ARAVIND V CHAVAN., ADVOCATE) Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:3114 WP No. 9470 of 2025 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ORIGINAL U/S 74 R.W.S 74(1) AND 122(2)(B) OF THE CGST ACT, 2017 VIDE OIO NO.223/2024-25 DIN:2025015700000000A3EE ON 31/01/2025 PASSED BY THE R2 AUTHORITY I.E. THE DEPUTY COMMISSIONER OF CENTRAL TAX, WEST DIVISION- 6 BANGALORE (ANNX-C). THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

The petitioner has sought for issuance of writ of certiorari to set aside the Order-in-Original at Annexure-'C' dated 31.01.2025 passed under Section 74 read with Section 74(1) and 122(2)(B) of the CGST Act, 2017 passed by respondent No.

Further, the petitioner has also sought for setting aside of the show cause notice at Annexure-'B' dated 16.08.2022 for the tax periods 2017-2018, 2018-2019 and 2019-2020. 2. The petitioner submits that the Order-in-Original at Annexure-'C' dated 31.01.2025 is liable to be set aside, as the show cause notice itself issued for different tax period is one without juri iction. HC-KAR NC: 2026:KHC:3114

Reliance is placed on the order of this Court dated 17.12.2025 passed in W.P.No.22726/2025 in the case of M/s. Lakshmi Venkateshwara Traders MS Scrap v. The Deputy Commissioner of Central Tax and Another, wherein reference is made to the order of the Co-ordinate Bench dated 11.12.2025 passed in W.P.No.33081/2025 in the case of M/s. Pramur Homes and Shelters v. The Union of India and Others.

The observations made in W.P.No.22726/2025 read as follows:-

Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of this Court in the case of M/S Pramur Homes And Shelters Vs. The Union of India and Ors. in WP No.33081/2025 dated 11.12.2025. 3. In the said judgment, this Court formulated two points for consideration, which reads as under: (i)Whether clubbing/consolidation/bunching/ combining of multiple tax periods/ financial years in a Single/Composite Show cause notice issued under Section 73 / 74 of the CGST/ KGST Act , 2017 is permissible and valid in law? HC-KAR NC: 2026:KHC:3114 (ii) Whether the impugned Show cause notice dated 30.09.2025 issued by the 4th respondent to the petitioner for the tax periods/financial years from 2019-20 to 2023-24 under Section 74 of the CGST/ KGST Act, 2017 warrants interference by this Court in the present petition?

Issue No.1 was answered by this Court in favour of the petitioner by holding as under: Point No.(i) is accordingly answered in favour of the petitioner/tax payer/assessee by holding that clubbing/ consolidation/ bunching/ combining of multiple tax periods/financial years in a Solitary/Single/Composite Show cause notice issued under Section 73/74 of the CGST/KGST Act is illegal, invalid, impermissible and without juri iction or authority of law and contrary to the provisions of the CGST/KGST Act.

So also point No.2 was also answered by this Court in favour of the petitioner by quashing the impugned Show Cause Notice by holding as under: “Re: Point No.(ii);

While dealing with Point No. (i) supra, I have already come to the conclusion that clubbing / consolidation / bunching/ combining of multiple tax periods/financial years in a Solitary/Single/ Composite Show cause notice issued under Section 73 / 74 of the CGST / KGST Act is illegal, invalid, impermissible and without juri iction or authority of law and contrary to the provisions of the CGST / KGST Act. In the instant case, a perusal of the impugned Show cause notice dated 30.09.2025 will indicate that the same encompasses and pertains to multiple tax periods/financial years, viz., from 2019-20 to 2023-24, which is impermissible in law and consequently, the impugned Show cause notice HC-KAR NC: 2026:KHC:3114 and all further proceedings pursuant thereto are also vitiated and deserve to be quashed reserving liberty to the respondents to initiate any action/proceedings in accordance with law.

Point No.(ii) is also accordingly answered in favour of the petitioner/tax payer/assessee by holding that the impugned Show cause notice dated 30.09.2025 issued by the 4th respondent to the petitioner for the tax periods/financial years from 2019-20 to 2023-24 under Section 74 of the CGST/KGST Act is illegal, invalid, impermissible, arbitrary and without juri iction or authority of law and contrary to the provisions of the CGST/KGST Act and the impugned show cause notice and all further proceedings, orders, notices pursuant thereto deserve to be quashed by reserving liberty in favour of the respondents to initiate proceedings in accordance with law.

10.

In the result, I pass the following: ORDER

(i) Petition is hereby allowed.

(ii) The impugned show-cause notice at Annexure-A dated 30.09.2025 issued by respondent No.4 and all further proceedings, orders, notices etc., pursuant thereto initiated/to be initiated by the respondents are hereby quashed. (iii) The respondents are however reserved liberty to initiate appropriate proceedings in accordance with law and if such proceedings are initiated by the respondents, petitioner would be entitled to contest / defend the same in accordance with law.”

The issue in controversy involved in the present petition also relates to clubbing/consolidation/bunching/combining of multiple tax periods/financial years/block periods in a Single/Composite Show cause notice, which has HC-KAR NC: 2026:KHC:3114 already been held to be invalid and illegal by this Court in M/S Pramur Homes And Shelters’s case referred to Supra.

Under these circumstances, the impugned show cause notices both dated 31.03.2022 at Annexures- F and F1 passed by respondent No.1 deserve to be quashed.

In the result, I pass the following: ORDER

(i) Petition is hereby allowed and disposed of in terms of M/S Pramur India and Ors. in WP No.33081/2025 dated 11.12.2025. (ii) The impugned show cause notices both dated 31.03.2022 at Annexures- F and F1 passed by respondent No.1 and all further proceedings, orders, notices etc., pursuant thereto initiated/to be initiated by the respondents are hereby quashed.

(iii) The respondents are however reserved liberty to initiate appropriate proceedings in accordance with law and if such proceedings are initiated by the respondents, petitioner would be entitled to contest / defend the same in accordance with law."

In the present case, the show cause notice at Annexure-'B' dated 16.08.2022 issued under Section 74 of CGST Act, 2017 relates to different time periods as is evidenced from para-10. The tax period involved span HC-KAR NC: 2026:KHC:3114 from July 2017 till March 2020. The tax periods for which returns are to be filed are every year.

In light of the law laid down in M/s. Pramur Homes and Shelters extracted supra and the observation that there cannot be combining of multiple tax periods in a single show cause notice in the present case as well, the show cause notice at Annexure-'B' dated 16.08.2022 and the consequent order of adjudication, i.e. Order-in-Original at Annexure-'C' dated 31.01.2025 are set aside. The respondents are however reserved liberty to initiate appropriate proceedings in accordance with law as regards which show cause notice was issued. All contentions are kept open. (S SUNIL DUTT YADAV) JUDGE

VGR