M/S Sine Powertek Systems vs. The State Of Karnataka
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Cause title — parties, addresses and appearances
ORDER OR DIRECTION, QUASHING THE IMPUGNED FORM GST DRC-13 DATED 02.01.2026 ISSUED BY RESPONDENT NO.2 UNDER SECTION 79(1)(C) OF THE CGST/KGST ACT, 2017 AND ADDRESSED TO RESPONDENT NO.3, WHEREBY RECOVERY OF A SUM OF 265,382/-IS SOUGHT TO BE EFFECTED FROM THE PETITIONER-S BANK ACCOUNT, PRODUCED HEREWITH AND MARKED AS ANNEXURE-A; CONSEQUENTLY, ISSUE A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION DIRECTING RESPONDENT NOS. 1 AND 2 TO WITHDRAW AND/OR KEEP IN ABEYANCE ALL CONSEQUENTIAL RECOVERY PROCEEDINGS HC-KAR
CNR: KAHC010632772026 NC: 2026:KHC:50720 INITIATED PURSUANT TO THE IMPUGNED FORM GST DRC-13 DATED 02.01.2026, ANNEXURE-A, UNTIL THE PETITIONER-S LIABILITY IS DETERMINED IN ACCORDANCE WITH THE LAW APPLICABLE TO THE RELEVANT PERIOD; ISSUE A WRIT OF MANDAMUS DIRECTING RESPONDENT NO.2 TO CONSIDER AND GIVE EFFECT TO THE RETROSPECTIVE INSERTION OF SECTION 16(5) OF THE CGST ACT, 2017, INSOFAR AS THE SAME APPLIES TO THE PETITIONER-S INPUT TAX CREDIT PERTAINING TO FINANCIAL YEAR 2018-19, AFTER TAKING INTO CONSIDERATION THE RELEVANT GSTR-3B RETURNS FILED BY THE PETITIONER ON 04.09.2020, PRODUCED AS ANNEXURE-C, AND THE COMPLETE PROCEEDINGS AND DOCUMENTS INCLUDING THE PETITIONER-S RESPONSE IN ANNEXURE-Q.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD HC-KAR
CNR: KAHC010632772026 NC: 2026:KHC:50720 ORAL ORDER
The petitioner's grievance is with the Adjudication Order dated 31.01.2024 and the Summary thereof which is even dated and in the prescribed form. The petitioner has also called in question the Garnishee Notice in Form GST DRC-13 dated 02.01.2026. Mr. M. S. Shyam Sundar, the Senior counsel for the petitioner, inviting this Court's attention to the terms of the Show Cause Notice dated 23.05.2023 [Annexure – D] and the impugned Adjudication Order, submits that the adjudication is bereft of any reason.
In elaboration, Mr. M. S. Shyam Sundar submits that the Show Cause Notice is issued in the premise that the petitioner has filed returns in GSTR-3B for the months between September 2018 and March 2019 on 04.09.2020 but the petitioner would be entitled to the benefit of introduction of HC-KAR
CNR: KAHC010632772026 NC: 2026:KHC:50720 Section 65 the Central Goods and Services Tax Act, 2017/the Karnataka Goods and Services Tax Act, 2017 [for short, ‘the CGST/KGST Act’] with effect from 01.07.2017, which protects ITC claimed in any belated Return filed by 30.11.2021 so long as it pertains to the four financial years 2017-18, 2018- 19, 2019-20 and 2020-21. 3. Ms. Jyoti M. Maradi, a learned High Court Government Pleader who is called upon to accept notice for the first and second respondents, is heard for the disposal of the petition. The learned High Court Government Pleader points out that the petitioner, who only requested time to file reply when served with a Show Cause Notice, has filed the present petition only because of the Garnishee Notice relying upon the amendment which was not in the statute book as of the date of the Show Cause Notice or the impugned Adjudication Order. HC-KAR
CNR: KAHC010632772026 NC: 2026:KHC:50720
The circumstances are considered. This Court is of the view that the petition must be disposed of interfering with the Adjudication Order dated 31.01.2024 by the second respondent in the light of the insertion of Section 65 of the CGST/KGST Act and the admitted position that the returns for the relevant months have been filed on 04.09.2020, much before 30.11.2021, as envisaged. The proceedings must be restored for re-examination to be considered in the inserted provision dissolving the impugned Garnishee Notice. Hence, the following. ORDER [A] The petition is allowed-in-part. [B] The impugned Adjudication Order dated 31.01.2024 [Annexure – J] and the Garnishee Notice in GST DRC-13 dated 02.01.2026 [Annexure – A] are quashed restoring the proceedings to the stage of HC-KAR
CNR: KAHC010632772026 NC: 2026:KHC:50720 response to the Show Cause Notice dated 23.05.2023 [Annexure – D]. [C] The petitioner will be at liberty to file a certified copy of this order and its response without further notice by 16.10.2026. (B M SHYAM PRASAD) JUDGE
RB List No.: 2 Sl No.: 7
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.