Full Judgment Text
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NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 27 DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 8247 OF 2026 (T-RES)
BETWEEN:
MICRO TECH CNC,
A PARTNERSHIP FIRM REPRESENTED BY ITS
PARTNER,
SHRI YOGESHWARA
SON OF SHRI SUBRAYA HEBBAR,
AGED 46 YEARS,
HAVING OFFICE AT A-43/C,
ND
KSSIDC 2 CROSS,
ND
2 MAIN, PEENYA,
BENGALURU-560058.
…PETITIONER
(BY SRI. PRADYUMNA HEJIB, ADVOCATE)
Digitally
signed by
VIJAYA P
Location:
HIGH COURT
OF
KARNATAKA
AND:
THE ASSISTANT COMMISSIONER OF COMMERCIAL
TAXES (AUDIT) - 6.7,
DGSTO-6, KIADB BUILDING,
RD TH TH
3 FLOOR, 14 CROSS, 4 PHASE,
ND
PEENYA 2 STAGE,
BENGALURU - 560 058.
…RESPONDENT
(BY SRI. K. HEMAKUMAR, AGA)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH
ADJUDICATION ORDER BEARING NO.ACCT (AUDIT)-
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NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
6.7/S74/AO-04/2024-25 DATED 31.12.2024 PASSED BY THE
RESPONDENT ANNEXURE-A AND ETC.,
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 setting aside of the
order of adjudication at Annexure-A as well as the
recovery proceedings instituted pursuant to such order.
2. It is the case of the petitioner that the order
passed under Section 74 of the Central Goods and
Services Tax Act, 2017 (for short 'the Act') is without
affording full opportunity to the petitioner as the petitioner
was given only one opportunity during personal hearing. It
is further submitted that if the petitioner is given sufficient
opportunity, he would make out his stand insofar as the
show-cause notice on merits.
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3. Learned counsel for the petitioner submits that
Section 74 of the Act could not have been invoked and the
petitioner would demonstrate the same.
4. Perused the order at Annexure-A which is the
order of adjudication. As pointed out by the learned
Additional Government Advocate, in-fact the petitioner
was granted one opportunity of personal hearing.
However, it is noticed that there has been no reply of the
petitioner to the show-cause notice.
5. In light of the contention raised including
regarding applicability of Section 74 to the present case, it
would be appropriate to set aside the order at Annexure-A
and remit the matter to the stage of reply to show-cause
notice. Consequent to setting aside of the order at
Annexure-A, recovery proceedings at Annexure-B is also
set aside.
6. In light of the contention advanced, the
respondent authorities are at liberty, if circumstances are
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NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
so made out, upon hearing and perusing the reply to
convert the proceedings to one under Section 73 as well.
All contentions on merits are kept open.
7. Petitioner to appear before the respondent
without further notice on 27.04.2026.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 27 DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 8247 OF 2026 (T-RES)
BETWEEN:
MICRO TECH CNC,
A PARTNERSHIP FIRM REPRESENTED BY ITS
PARTNER,
SHRI YOGESHWARA
SON OF SHRI SUBRAYA HEBBAR,
AGED 46 YEARS,
HAVING OFFICE AT A-43/C,
ND
KSSIDC 2 CROSS,
ND
2 MAIN, PEENYA,
BENGALURU-560058.
…PETITIONER
(BY SRI. PRADYUMNA HEJIB, ADVOCATE)
Digitally
signed by
VIJAYA P
Location:
HIGH COURT
OF
KARNATAKA
AND:
THE ASSISTANT COMMISSIONER OF COMMERCIAL
TAXES (AUDIT) - 6.7,
DGSTO-6, KIADB BUILDING,
RD TH TH
3 FLOOR, 14 CROSS, 4 PHASE,
ND
PEENYA 2 STAGE,
BENGALURU - 560 058.
…RESPONDENT
(BY SRI. K. HEMAKUMAR, AGA)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH
ADJUDICATION ORDER BEARING NO.ACCT (AUDIT)-
- 2 -
NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
6.7/S74/AO-04/2024-25 DATED 31.12.2024 PASSED BY THE
RESPONDENT ANNEXURE-A AND ETC.,
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 setting aside of the
order of adjudication at Annexure-A as well as the
recovery proceedings instituted pursuant to such order.
2. It is the case of the petitioner that the order
passed under Section 74 of the Central Goods and
Services Tax Act, 2017 (for short 'the Act') is without
affording full opportunity to the petitioner as the petitioner
was given only one opportunity during personal hearing. It
is further submitted that if the petitioner is given sufficient
opportunity, he would make out his stand insofar as the
show-cause notice on merits.
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NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
3. Learned counsel for the petitioner submits that
Section 74 of the Act could not have been invoked and the
petitioner would demonstrate the same.
4. Perused the order at Annexure-A which is the
order of adjudication. As pointed out by the learned
Additional Government Advocate, in-fact the petitioner
was granted one opportunity of personal hearing.
However, it is noticed that there has been no reply of the
petitioner to the show-cause notice.
5. In light of the contention raised including
regarding applicability of Section 74 to the present case, it
would be appropriate to set aside the order at Annexure-A
and remit the matter to the stage of reply to show-cause
notice. Consequent to setting aside of the order at
Annexure-A, recovery proceedings at Annexure-B is also
set aside.
6. In light of the contention advanced, the
respondent authorities are at liberty, if circumstances are
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NC: 2026:KHC:17445
WP No. 8247 of 2026
HC-KAR
so made out, upon hearing and perusing the reply to
convert the proceedings to one under Section 73 as well.
All contentions on merits are kept open.
7. Petitioner to appear before the respondent
without further notice on 27.04.2026.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR