Aim Trading Company vs. The Assistatn Commissioner Of Commercial Taxes

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WP/27099/2025HC KarnatakaGSTCNR KAHC01058939202518 September 2025Bench: M.NAGAPRASANNA5 pages
For Petitioner: SRI. E. I. SANMATHI, ADVOCATEFor Respondent: SRI. K. HEMAKUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:37477 WP No. 27099 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO.27099 OF 2025 (T-RES) BETWEEN: AIM TRADING COMPANY NO.236, 100 FEET OUTERRING ROAD, BENGALURU URBAN, BENGALURU – 560 078, (REPRESENTED BY ITS PROPRIETOR, SRI. SUNYATH KHAN) …PETITIONER (BY SRI. E. I. SANMATHI, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:37477 WP No. 27099 of 2025 LOCAL GOODS AND SERVICE TAX OFFICE - 121 JAYANAGAR 4TH BLOCK, BENGALURU – 560 011 2. COMMISSIONER OF COMMERCIAL TAXES COMMERCIAL TAX BUILDING, GANDHINAGAR, BANGALORE - 560 009 …RESPONDENTS (BY SRI. K. HEMAKUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH PROCEEDINGS UNDER RULE 86A OF THE KGST/CGST RULES, 2017 DATED 8/8/2025 BEARING REF NO.ACCT/LGSTO-121/ITC BLOCK /2025-26 ISSUED BY ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-121, BANGALORE IS PRODUCED AS ANNEXURE-A. THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:37477 WP No. 27099 of 2025 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER The petitioner is before this Court seeking the following prayer: “WHEREFORE, the Petitioners pray that this Hon’ble Court may be pleased to: quash

Proceedings under Rule 86A of the KGST/CGST Rules, 2017 dated 8/8/2025 bearing Ref.No.ACCT/LGSTO- 121/ITC Block/2025-26 issued by Assistant Commissioner of Commercial Taxes, LGSTO-121, Bangalore is produced as Annexure – A.”

2.

Heard Sri E.I.Sanmathi, learned counsel for petitioner and Sri K. Hemakumar, learned Additional Government Advocate for respondents.

3.

The petitioner is calling in question an order dated 08.08.2025, passed under Sections 86A of the KGST / CGST, Rules, 2017, blocking the credit ledger of the petitioner.

4.

Learned counsel for the petitioner projects one solitary circumstance for entertainment of the petition at this juncture, is that, the proceedings were ex-parte. HC-KAR NC: 2025:KHC:37477

5.

Learned Additional Government Advocate would submit that notices were issued to the petitioner but the petitioner refused to appear before the Authority. Since the notices are issued, the assessment order should not be quashed, but an opportunity may be granted to the petitioner.

6.

A perusal of the order impugned would also indicate that the proceedings are indeed ex-parte.

7.

In the light of the said submission, I deem it appropriate to sustain the impugned order in the peculiar facts of this case and remit the matter back to the hands of respondent No.2 to hear the petitioner and pass necessary orders in accordance with law.

8.

In the light of the said circumstance, I deem it appropriate to dispose the petition with a direction to respondent No.1 to hear the petitioner and pass necessary orders in accordance with law.

9.

For the aforesaid reasons, the following: ORDER a. The writ petition stands disposed. HC-KAR NC: 2025:KHC:37477 b. The impugned order dated 08.08.2025, passed by respondent No.1 stands sustained, however, subject to the result of what respondent No.1 would do after hearing the petitioner, as held hereinabove. c. The petitioner shall appear before respondent No.1 on 27.10.2025 at 02.30 p.m. and submit his reply to the show cause notice so issued, to respondent No.1, who shall consider the same and pass necessary orders, in accordance with law, within four weeks thereafter. d. The consequential actions pursuant to the impugned order would remain, subject to the result of the orders that would be passed by respondent No.

1.

Ordered accordingly. (M.NAGAPRASANNA) JUDGE

NVJ List No.: 1 Sl No.: 48

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.