SREE SHIRDI SAI AGGREGATES vs THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 29 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD
WRIT PETITION NO. 27328 OF 2026 (T-RES)
BETWEEN:
SREE SHIRDI SAI AGGREGATES
A PARTNERSHIP FIRM
HAVING ITS REGISTERED OFFICE AT
ST
NO. 447/90, 1 FLOOR
PERESANDRA VILLAGE,
MANDIKALLU HOBLI
CHIKBALLAPURA - 562 104
REPRESENTED BY ITS PARTNER
SHRI P. RAGHAVENDRA REDDY
…PETITIONER
(BY SRI. PRADYUMNA HEJIB., ADVOCATE)
AND:
1. THE DEPUTY COMMISSIONER
OF COMMERCIAL TAXES
(AUDIT)-5.5 DGSTO-5
TH
ROOM NO. 514, 5 FLOOR
VTK-2 BUILDING
RAJENDRANAGARA,
KORAMANGALA
BENGALURU - 560 047
2. THE ASSISTANT COMMISSIONER
OF COMMERCIAL TAXES,
VIGILANCE-02
TH
5 FLOOR, B BLOCK
ROOM NO. 508, VTK-2 BUILDING
RAJENDRANAGARA,
Digitally
signed by
VANAMALA
N
Location:
HIGH
COURT OF
KARNATAKA
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
KORAMANGALA
BENGALURU - 560 047
…RESPONDENTS
(BY SMT. JYOTI M. MARADI, HCGP)
THIS WP IS FILED UNDER ARTICLE 226 & 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH
ADJUDICATION ORDER BEARING FILE NO. DCCT (A)-
5.5 SREE SHIRDI SAI AGGREGATES/ADJN US 74
AUDIT/NO/2026-27 AND DATED 31.07.2026 PASSED
BY THE FIRST RESPONDENT FOR THE ASSESSMENT
YEAR 2020-21 (ANNEXURE -A); B) QUASH
ADJUDICATION ORDER BEARING FILE NO. DCCT (A)-
5.5 SREE SHIRDI SAI AGGREGATES/ADJN US 74
AUDIT/NO/2026-27 AND DATED 31.07.2026 PASSED
BY THE FIRST RESPONDENT FOR THE ASSESSMENT
YEAR 2021-22 (ANNEXURE-A1); C) QUASH
ADJUDICATION ORDER BEARING FILE NO. DCCT (A)-
5.5 SREE SHIRDI SAI AGGREGATES/ADJN US 74
AUDIT/NO /2026-27 AND DATED 31.07.2026 PASSED
BY THE FIRST RESPONDENT FOR THE ASSESSMENT
YEAR 2022-23 (ANNEXURE - A2); D) QUASH
ADJUDICATION ORDER BEARING FILE NO. DCCT (A)-
5.5 SREE SHIRDI SAI AGGREGATES/ADJN US 74
AUDIT/NO /2026-27 AND DATED 31.07.2026 PASSED
BY THE FIRST RESPONDENT FOR THE ASSESSMENT
YEAR 2023-24 (ANNEXURE-A3).
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The petitioner has called in question the
following:
Sl.
No.
Tax Period Adjudication
Annexures
Order
1 2020-21 31.07.2026 A
2 2021-22 31.07.2026 A1
3 2022-23 31.07.2026 A2
4 2023-24 31.07.2026 A3
It is not in dispute that the adjudication is for tax
related to Entries 49 and 50 of List II of the Seventh
Schedule and that the sustainability of the demand is
settled by a decision of the Apex Court dated
14.08.2024 in ‘ Mineral Area Development Authority v.
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
1
Steel Authority of India’ in Civil Appeal Nos.4056-
4064/1999 dated 14.08.2024.
Mr. Pradyumna Hejib, the learned counsel for
the petitioner, submits that the impugned
Adjudication Orders relate to the tax period 2020-21
to 2023-24 and the petitioner's grievance with the
impugned Adjudication Orders would be redressed if
the proceedings are restored limited to examining
whether the petitioner must be admitted to
installments to discharge the demand of tax and with
waiver of interest and penalty. In this regard, the
learned counsel relies upon the Apex Court's decision
in Mineral Area Development Authority [supra].
The operative portion of this Judgment reads as
under.
“Bearing in mind the consequences that would
emanate from the past period, the following
conditionalities are directed to prevail:
1
[2024] 21 Centax 313 [SC]
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
a. While the States may levy or renew
demands of tax, if any, pertaining to
Entries 49 and 50 of List II of the Seventh
Schedule in terms of the law laid down in
the decision in MADA [supra] the demand
of tax shall not operate on transactions
made prior to 1 April 2005;
b. The time for payment of the demand of
tax shall be staggered in instalments
over a period of twelve years
commencing from 1 April 2026; and
c. The levy of interest and penalty on
demands made for the period before 25
July 2024 shall stand waived for all the
assessees.”
Ms. Jyoti M. Maradi, a learned High Court
Government Pleader, is called upon to accept notice
for the respondents. The petitioner will not be able to
deny the demand, and the only question is whether
the petitioner must be admitted to instalment to pay
this Demand in terms of the afore direction with
waiver of interest and penalty. This Court is of the
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NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
view that these aspects can be re-examined in the
light of the Supreme Court's decision as aforesaid on
the factual matrix before the Adjudication Orders are
enforced. Hence, the limited interference is by the
following.
ORDER
[A] The petition stands disposed of
reserving liberty to the petitioner to file
a request with the first respondent for
consideration of discharge of the
liability in terms of the directions of the
Apex Court in the case of Mineral Area
Development Authority [supra].
[B] The petitioner shall file its
representation in terms of the liberty by
06.11.2026 , and the first respondent,
after extending an opportunity of
personal hearing to the petitioner, shall
decide on whether the enforcement
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HC-KAR
NC: 2026:KHC:53853
WP No. 27328 of 2026
CNR: KAHC010593432026
under the impugned Adjudication
Orders can be modulated in terms of
the directions of the Apex Court.
Sd/-
(B M SHYAM PRASAD)
JUDGE
AN/-
List No.: 2 Sl No.: 7