M/S N.S.NADAGOUDA CONTRACTOR vs THE COMMERCIAL TAX OFFICER
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC-D:17878
WP No. 103194 of 2026
CNR: KAHC020056022026
IN THE HIGH COURT OF KARNATAKA AT DHARWAD
TH
DATED THIS THE 30 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE T.M.NADAF
WRIT PETITION NO.103194 OF 2026 (T-RES)
BETWEEN:
M/S. N.S. NADAGOUDA CONTRACTOR
GSTIN: 29AGLPN2136M1ZX
R/BY ITS PROPRIETOR,
SRI. NINGANAGOUD S NADGOUD
S/O. SHANKARAGOUDA,
AGED ABOUT 58 YEARS,
RESIDING AT ADDRESS: WARD NO.5,
AISHWARYA COLONY MAIN ROAD,
BEHIND SAI TEMPLE, MUDHOL, BAGALKOT-587313,
EMAIL: [email protected],
MOBILE: +91 9902848741.
…PETITIONER
(BY SMT. UMERA, ADVOCATE FOR
SRI. AJAYKUMAR N., ADVOCATE)
AND:
1. THE COMMERCIAL TAX OFFICER
(AUDIT)-2 BAGALKOT,
DGSTO-BELAGAVI, NO.7, VANIJYA THERIGE BHAVANA,
NAVANAGARA, BAGALKOTE-587101.
EMAIL: [email protected]
TELEPHONE: 08354-235790.
2. THE JOINT COMMISSIONER OF
COMMERCIAL TAXES (APPEALS)-BELAGAVI,
DGSTO BELAGAVI, SUMOULYA SOUDHA,
CLUB ROAD, BELAGAVI-590001.
EMAIL: [email protected]
TELEPHONE: 0831-2407367.
3. THE JOINT COMMISSIONER OF
COMMERCIAL TAXES (ADMN)-BELAGAVI,
SUMOULYA SOUDHA, CLUB ROAD, BELAGAVI-590001.
Digitally signed by
THEJAS KUMAR N
Location: High
Court of
Karnataka,
Dharwad Bench
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EMAIL: [email protected],
TELEPHONE NO: 0831-2407363.
4. THE COMMISSIONER OF COMMERCIAL TAXES,
VINIJYA THERIGE KARYALAYA-1,
ST
1 FLOOR GANDHINAGAR BENGALURU-560009,
EMAIL: [email protected]
TELEPHONE: 080-22264495.
…RESPONDENTS
(BY SMT. KIRTILATA R.PATIL, HCGP)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO (A) ISSUE WRIT OF
CERTIORARI THEREBY QUASHING AND SETTING ASIDE THE ORDER-
IN-ORIGINAL PASSED UNDER SECTION 73(9) OF THE CGST/KGST
ACTS BEARING REF NO: CTO/(AUDIT)-2/BGK/2024-25/B AND
CONSEQUENTIAL DEMAND SUMMARY IN FORM GST DRC-07
BEARING REF NO: ZD2911240908634 DATED 20.11.2024, WHICH IS
AT ANNEXURE-D; PASSED BY RESPONDENT NO-1 (B) ISSUE WRIT
OF CERTIORARI THEREBY QUASHING AND SETTING ASIDE THE
ORDER-IN-APPEAL PASSED UNDER SECTION 107 OF THE
CGST/KGST ACTS BEARING REF NO: APPEAL NO. GST-405/2025-26
DATED 07.11.2025 ALONG WITH FORM GST APL-02 BEARING REF
NO: ZD291125179595V DATED 21.11.2025, WHICH IS AT
ANNEXURE-H; PASSED BY RESPONDENT NO-2 (C) IN THE
ALTERNATIVE, REMAND THE MATTER TO RESPONDENT NO.1 FOR
FRESH ADJUDICATION FROM THE STAGE OF SHOW CAUSE NOTICE
BEARING REF NO. CTO/AUDIT- 2/BGK/DRC01/2024-25/B ALONG
WITH SUMMARY IN FORM GST DRC-01 BEARING REF NO:
ZD291024027350U DATED 14.10.2024, PRODUCED AT ANNEXURE-C,
PASSED BY RES-1 WITH A DIRECTION TO AFFORD THE PETITIONER
A REASONABLE OPPORTUNITY OF PERSONAL HEARING, TO PERMIT
THE PETITIONER TO PLACE ADDITIONAL SUBMISSIONS AND
DOCUMENTS ON RECORD, AND THEREAFTER PASS A REASONED
ORDER IN ACCORDANCE WITH LAW; D) TO GRANT SUCH OTHER
RELIEF AS THE HON’BLE, COURT MAY DEEM FIT IN THE INTEREST OF
JUSTICE AND EQUITY.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER
WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE T.M.NADAF
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ORAL ORDER
This Writ Petition is filed seeking the following reliefs:
“(a) Issue Writ of Certiorari thereby quashing
and setting aside the Order-in-Original
passed under Section 73(9) of the
CGST/KGST Acts bearing Ref No:
CTO/(AUDIT)-2/BGK/2024-25/B And
consequential Demand Summary in Form
GST DRC-07 bearing Ref No:
ZD2911240908634 dated 20.11.2024,
which is at Annexure-D ; passed by
Respondent no-1
(b) Issue Writ of Certiorari thereby quashing
and setting aside the Order-in-Appeal
passed under Section 107 of the
CGST/KGST Acts bearing Ref No: Appeal
No. GST-405/2025-26 dated 07.11.2025
along with Form GST APL-02 bearing Ref
No: ZD291125179595V dated 21.11.2025,
which is at ANNEXURE-H ; passed by
Respondent no-2
(c) In the alternative, remand the matter to
Respondent No.1 for fresh adjudication from
the stage of Show Cause Notice bearing Ref
No. CTO/AUDIT- 2/BGK/DRC01/2024-25/B
along with summary in Form GST DRC-01
bearing Ref No: ZD291024027350U dated
14.10.2024, produced at ANNEXURE-C ,
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passed by Res-1 with a direction to afford
the Petitioner a reasonable opportunity of
personal hearing, to permit the Petitioner to
place additional submissions and documents
on record, and thereafter pass a reasoned
order in accordance with law;
d) To grant such other relief as the Hon’ble,
court may deem fit in the interest of justice
and equity.”
2. Facts germane to file the present petition are as
under:
2.1 The petitioner was registered under the GST Act with
registration No.GSTIN:29AGLPN2136M1ZX, CTO
(Enforcement)-2 Jamakhandi. An inspection was
conducted on 17.10.2022, in the premises in respect
of petitioner's GST affairs with reference to tax
period 2021-22 and found that some tax has been
escaped and filed a report to that effect proposing
tax and penalty liability in Form GST DRC-01A.
2.2 Thereafter, on 10.04.2024, respondent No.1 issued a
pre-intimation notice to the petitioner on the basis of
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the inspection report alleging discrepancy between
the ITC claim in GSTR-3B and that reflected in GSTR-
2A and quantified the proposed tax and interest
liability on the basis of such alleged mismatch.
2.3 Thereafter, on 14.10.2024, a show cause notice was
issued to the petitioner on the allegations stated
supra, to show cause by means of reply in Form
No.GST DRC-06.
2.4 Thereafter, a demand notice was issued on
20.11.2024, demanding tax liability. The petitioner
has neither appeared nor filed reply to the show
cause notice. In that view of the matter, respondent
No.1 passed an order in Original confirming the
demand made on 20.11.2024 vide Annexure-D
exercising power under Section 73(9) read with
142(5) of the KGST/CGST Act, 2017, demanding a
sum of Rs.42,15,944/- and directed to issue form
GST DRC-07 accordingly.
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2.5 This was the subject matter before respondent No.2
in GST Appeal No.405/2025-26 under Section 107 of
the Karnataka Goods and Services Tact Act,
2017/Central Goods and Services Act, 2017.
2.6 The Appellate Authority dismissed the appeal on the
ground of delay stating that the delay in filing the
appeal exceeds permissible condonation period of
one month beyond the statutory timeline. In that
circumstance, the Authority lacks jurisdiction to
condone the delay.
3. Heard, Ms.Umera, learned counsel appearing on
behalf of Sri.Ajay Kumar N., learned counsel for the
petitioner and Smt.Keerthilatha Patil, learned HCGP for the
Revenue.
4. Ms.Umera submits that the delay in filing the
appeal is for the reason that the petitioner was not notified
of the order and the order came to be passed keeping the
petitioner ex-parte. Learned counsel submits that since the
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matter pertains to Tax, the substantial right of the
petitioner would be lost if the petitioner is not given proper
opportunity to put forth and represent its case as the
appeal dismissed only on hyper technicality of delay.
5. In order to support his case, learned counsel
has relied on the judgment of the Co-ordinate Bench of
this Court in W.P.No.102532/2026, disposed on
19.06.2026 to contend that the Co-ordinate Bench, in an
identical matter, where there is a delay of 181 days,
relying on the judgment of the Division Bench of this Court
in W.A.No.100608/2025, disposed on 25.09.2025 and
other two Writ Petitions by the Co-ordinate Bench, allowed
the Writ Petition in part, set aside the order passed by the
Appellate Authority, remanded the matter to the Appellate
Authority while condoning the delay and directed the
respondent No.2 to adjudicate the appeal on merits in
accordance with Section 107 of GST Act, 2017, since the
matter therein was also identical and sought to dispose
the present petition.
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6. Learned HCGP argued in support of the order
passed by the Authority and sought to dismiss the
petition.
7. Having considered the rival submissions, this
Court has perused the entire Writ Petition papers and the
judgment relied on by the petitioner in the aforesaid Writ
Petition.
8. The judgment of the Coordinate Bench in the
aforesaid Writ Petition in W.P.No.102532/2022 reads as
under:
2. The facts, in a nutshell, are that the
petitioner, a partnership firm, registered under the
1
provisions of the Goods and Services Tax Act, 2017 , was
issued a show-cause under Section 73(1) of the Act.
Consequent thereto, an adjudication order dated
26.07.2024 (Annexure-A to the writ petition) was passed
by respondent No.1 – Assistant Commissioner. The said
order was assailed by the petitioner in an appeal filed
under Section 107(1) of the Act before respondent No.2 –
Joint Commissioner. Respondent No.2, by the impugned
order dated 21.07.2025 (Annexure-B to the writ petition),
dismissed the appeal on the ground that there was a
delay of 181 days after the condonable period of 30 days
in filing the said appeal.
3. Being aggrieved, the present petition is filed.
1
Hereinafter referred to as the ‘Act’
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4. Learned counsel for the petitioner submits
that, in similar facts and circumstances, a Division Bench
of this Court in the case of Yallappa Patil vs. Assistant
2
Commissioner and Others , permitted an appeal to be
filed within four weeks and ordered that the same shall be
adjudicated without raising any objection on limitation. A
Co-ordinate Bench of this Court, in various cases, i.e., in
the case of Jai Hind Enterprises vs. Assistant
3
Commissioner of Commercial Taxes and Others as
well as in the case of Bandigisab Maheboobsab
4
Bijapur vs. Assistant Commissioner and Others , in a
similar factual matrix, granted relief and ordered as
under:
“ORDER
a. The petition is allowed in-part.
b. The petitioner is permitted to file an appeal
against the cancellation of registration before
the Appellate Authority within four weeks from
the date of the receipt of a copy of this order.
c. In the event, the appeal is preferred within four
weeks as aforesaid, it shall be considered on its
merit and not reject the appeal on the ground of
limitation.
d. In the event, the petitioner would not prefer an
appeal within four weeks as permitted above,
the benefit of the order rendered in the subject
petition would not be available to the
petitioner.”
5. Although the learned AGA vehemently
contends that there is no provision to condone the delay,
having regard to the judgments of the Division Bench and
the Co-ordinate Benches, as noticed above, the writ
petition merits consideration.
6. Hence, the following:
2
W.A.No.100608/2025 order dated 25.09.2025, NC:2025:KHC-D:13250-DB
3
W.P.No.107549/2024 decided on 21.01.2025, NC:2025:KHC-D:1034
4
W.P.No.108239/2025 decided on 05.11.2025, NC:2025:KHC-D:15104
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ORDER
a) The writ petition is allowed in part ;
b) The order dated 21.07.2025 passed in Appeal
No.GST-227/2025-26 passed by respondent No.2 –
Joint Commissioner is set aside;
c) The Appeal No.GST-227/2025-26 passed by
respondent No.2 – Joint Commissioner is restored to
file. The delay in filing the said appeal is condoned;
d) The respondent No.2 shall adjudicate the said
appeal on merits in accordance with law;
e) All contentions of the parties, on merits of the
matter, are kept open.”
9. Since the appeal was dismissed only on the
ground of delay, the relief granted in identical matter i.e.,
Writ Petition supra is extended to the petitioner in this
petition also.
10. For the foregoing reasons, this Court proceeds
to pass the following:
ORDER
i. The Writ Petition is allowed in part.
ii. The order dated 20.11.2024, 07.11.2025
and 14.10.2024 passed by respondent
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Nos.1 and 2 vide Annexures-D, H and C ,
respectively are hereby set aside.
iii. The delay in filing the appeal is condoned.
iv. The Appeal No.GST-405/2025-26 is
restored on the file of respondent No.2
subject to payment of another 10% before
the concerned authority within two weeks
from today.
v. The petitioner shall appear before the
respondent No.2 on 13.11.2026.
vi. The concerned Appellate Authority is
directed to dispose of the appeal as
expeditiously as possible considering the
tax period within an outer limit of four
weeks from the first appearance.
vii. The deposit of additional 10% is condition
precedent to provide an opportunity to the
respondent to put forth his case on merits
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and for the respondent No.2 to consider
the matter on merits.
viii. All the contentions of the parties are left
open.
Sd/-
(T.M.NADAF)
JUDGE
SRA
CT: UMD
List No.: 1 Sl No.: 32