M/S. Ado (INDIA) Private Limited vs. Assistant Commissioner Of Commercial Taxes
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The petitioner, engaged in manufacturing UPVC membranes, had shut down its Bengaluru premises during COVID-19 and affected inter-state supplies for which IGST was paid. The petitioner's grievance was that the adjudication orders for tax periods April 2019-March 2020 and April 2020-March 2021 were passed without a proper opportunity to present their case.
Held
The Court held that for a complete adjudication, the petitioner must have an opportunity to produce documents to justify its tax declarations. The impugned orders were quashed to allow for fresh consideration.
Key Issues
Whether the adjudication orders were passed without affording the petitioner a reasonable opportunity of hearing and to produce relevant documents. Whether the matter should be remanded for fresh consideration.
Sections Cited
Section 74, Section 73
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Cause title — parties, addresses and appearances
ORAL ORDER
The petitioner is engaged in the business of manufacturing and supplying UPVC membranes. The petitioner's case is that it shut down its premises in Bengaluru during the COVID-19 period and has also HC-KAR
CNR: KAHC010217262026 NC: 2026:KHC:36316 surrendered the premises to the landowner. The petitioner, during the financial year April 2019 to March 2020 and April 2020 to March 2021, has affected Inter-State supplies to its vendors based in different States such as Andhra Pradesh, Haryana, Uttar Pradesh, Odisha and Tamil Nadu and has also offered IGST with the correct declaration.
The petitioner's grievance with the Adjudication Orders for the afore tax periods is that for the first tax period the proceedings are under Section 74 of the Central Goods and Services Tax Act, 2017 and Karnataka Goods and Services Tax Act, 2017 [for short, the 'CGST/KGST Act] and the proceedings for the next tax period is under Section 73 of the CGST/KGST Act. These proceedings are concluded by the Adjudication Orders dated 28.02.2025 and 27.03.2026 respectively HC-KAR
CNR: KAHC010217262026 NC: 2026:KHC:36316 observing that the petitioner has been served with notices and has been extended with opportunities of personal hearing but has not filed any reply.
Sri. Gurudath V R, the learned counsel for the petitioner, submits that the petitioner has indeed not filed any reply to the Show Cause Notices, but has later filed a response on 21.02.2026 stating that the email id of one of its employees, Sri Amit Arora is furnished, that this employee is no longer in employment, and that as such the petitioner has not received intimation/notice. The learned counsel also submits that the petitioner has filed a compilation showing the location of the different vendors referring to the work order, the value, and the IGST standards.
Sri K. Hema Kumar, the learned Additional Government Advocate, who accepts notice for the respondents, is heard on: HC-KAR
CNR: KAHC010217262026 NC: 2026:KHC:36316 whether there must be interference with the impugned orders restoring the proceedings with opportunity to the petitioner to file response to the Show Cause Notice dated 29.11.2024 for the tax period - April 2020 to March 2021 and Show Cause Notice dated 16.09.2025 for the tax period - April 2019 to March 2020. This Court must opine that for a complete adjudication, the petitioner must have an opportunity to produce documents to justify the details which would indicate that the petitioner is not liable to pay CGST/KGST and that it has rightfully discharged the IGST. Hence, the following ORDER
The petition is allowed and the Adjudication Orders dated 28.02.2025 and 27.03.2026 [Annexures- A and B] are quashed subject to the following terms. HC-KAR
CNR: KAHC010217262026 NC: 2026:KHC:36316 [A] The proceedings are restored to the first respondent for due consideration subject to the petitioner depositing 10% of the tax amount in demand by 05.10.2026 subject to the outcome in the restored proceedings.
[B] The petitioner is permitted to file response to the Show Cause Notices dated 29.11.2024 for the tax period - April 2020 to March 2021 and the Show Cause Notice dated 16.09.2025 for the tax period - April 2019 to March 2020. along with the certified copy of this Order and the copies of the documents to justify the details which would indicate that the HC-KAR
CNR: KAHC010217262026 NC: 2026:KHC:36316 petitioner is not liable to pay CGST/KGST and that it has rightfully discharged the IGST.
[C] The petitioner shall produce these documents by 05.10.2026 and the first respondent shall consider these documents and then conclude the proceedings by a reasoned order. (B M SHYAM PRASAD) JUDGE
NV
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.