RIGHTBRAIN TECHNOLOGIES PRIVATE LIMITED vs STATE OF KARNATAKA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 30 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD
WRIT PETITION NO. 22830 OF 2026 (T-RES)
BETWEEN:
RIGHTBRAIN TECHNOLOGIES
PRIVATE LIMITED
A COMPANY INCORPORATED UNDER
THE PROVISIONS OF THE COMPANIES ACT, 2013,
HAVING ITS REGISTERED
ND
OFFICE AT NO. 356, 2 FLOOR,
14TH MAIN, 6TH CROSS, 6TH SECTOR, HSR
LAYOUT, BENGALURU 560102,
(REPRESENTED BY ITS
AUTHORIZED SIGNATORY)
…PETITIONER
(BY SRI. CHAKKI SIDDAVEER., ADVOCATE)
AND:
1.
STATE OF KARNATAKA
DEPARTMENT OF FINANCE
(COMMERCIAL TAXES),
M.S. BUILDING,
DR. AMBEDKAR VEEDHI,
BENGALURU 560001,
REPRESENTED BY ITS
PRINCIPAL SECRETARY.
2. THE ASSISTANT COMMISSIONER
OF COMMERCIAL TAXES
LGSTO-017, DGSTO-04,
TH
6 FLOOR, TTMC BUILDING
Digitally
signed by
VANAMALA
N
Location:
HIGH
COURT OF
KARNATAKA
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
(BMTC DEPOT), 80 FEET ROAD,
TH
6 BLOCK, KORAMANGALA,
BENGALURU 560095.
3.
THE DEPUTY COMMISSIONER
OF COMMERCIAL TAXES
(AUDIT)-4.1, DGSTO-04,
TH
NO. 601, 6 FLOOR,
TTMC BUILDING,
NEAR SONY SIGNAL,
KORAMANGALA,
BENGALURU 560095.
4. THE COMMISSIONER OF
COMMERCIAL TAXES,
KARNATAKA
VANIJYA THERIGE KARYALAYA, NO. 1
NRUPATHUNGA ROAD,
BENGALURU 560001.
…RESPONDENTS
(BY SMT. JYOTI M. MARADI, HCGP)
THIS WP IS FILED UNDER ARTICLE 226 & 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
ORDER-IN-ORIGINAL / FORM GST DRC-07 DATED
23.08.2024 BEARING REFERENCE NO. ACCT/LGSTO-
17/2A/DRC-07/2024-25, PASSED BY RESPONDENT NO.
2, PRODUCED AS ANNEXURE-A; B)QUASH THE
CONSEQUENTIAL DEMAND / RECOVERY REFERENCE
NO. ZD290824085523Y FOR THE TAX PERIOD APRIL
2019 TO MARCH 2020, PASSED BY RESPONDENT NO. 2,
PRODUCED AS ANNEXURE-B DATED ON 23.08.2024;
D) QUASH THE ORDER OF ADJUDICATION / FORM
GST DRC-07 DATED 09.12.2025 BEARING NO.
DCCT(AUDIT)4.1/GST-ADJ/2025-26 FOR THE TAX
PERIOD APRIL 2022 TO MARCH 2023, PASSED BY
RESPONDENT NO. 3, PRODUCED AS ANNEXURE- C;
E) DIRECTION TO CONSIDER THE REPRESENTATION
DATED 16.07.2026, SUBMITTED BY THE PETITIONER,
PRODUCED AT ANNEXURE-D.
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
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 is a company incorporated under
the Companies Act, 2013, and there is a change in its
Board. Its full-time director, Sri Satyanarayana
Murthy Yenamandra has transferred all his shares to
a third party and there is cessation of this association
with effect from 24.05.2023. The petitioner is served
with the Adjudication Orders dated 23.08.2024 for
the tax period April 2019 to March 2020 and April
2022 to March 2023. The details of the impugned
adjudication orders are as follows:
Notices/
Date Provision
Period Annexures
Orders
of the
CGST/KGS
T Act
Order-in-
Original/
Form GST
23.08.2024 73[9] April-2019
A
to March-
2020
DRC-07
Order of 23.08.2024 73 April-2019 B
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
Demand to March-
2020
Order of
Adjudication
09.12.2025 April-2022
C
– March-
2023
2. Sri Chakki Siddaveer, the learned counsel
for the petitioner, submits that this Court may
consider restoring the proceedings with opportunity
to the petitioner to file response to the Show Cause
Notice dated 27.03.2024 which corresponds to the
Adjudication Order dated 23.08.2024 for the tax
period April 2019 to March 2020 [ Annexure – A ] and
the Show Cause Notice dated 28.07.2025 which
corresponds to the Adjudication Order dated
09.12.2025 for the tax period April 2022 to March
2023 [ Annexure – B ] considering the petitioner’s bona
fide assertion that until 24.05.2023, tax compliances
were being looked into by Sri. Satyanarayana Murthy
Yenamandra who has retired and as of the date of the
corresponding notices, the petitioner had not made
any alternative arrangements.
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
3. Sri Chakki Siddaveer also submits that
the proceedings have been initiated because of a
mismatch between the Input Tax Credit availed in
Form GSTR -3B and the Input Tax Credit reflected in
Form GSTR-2A and that the petitioner, if extended
with an opportunity, can furnish documents to show
the reconciliation establishing the genuineness of the
transactions based on which the returns have been
filed in Form GSTR-3B. Ms. Jyothi M. Maradi, a
learned Standing Counsel for the respondents, is
heard in the light of the same to decide on whether
the petitioner must be extended an opportunity.
4. The petitioner's case insofar as sufficient
cause for non-participation in the proceedings hinges
on the assertion that between 24.05.2023 and the
issuance of the Intimation and show cause notice for
the corresponding years, the petitioner had not made
alternative arrangements to look after the tax affairs.
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
There could be some debate on whether the petitioner
could have waited for over 20 months to make the
alternative arrangements but bona fides are pleaded,
and the petitioner asserts that it can produce
reconciliation and documents to show the
genuineness of the transactions based on which the
returns are filed in Form GSTR- 3B. As such, this
Court is of the opinion that the petitioner must have
an opportunity so that there is adjudication without
protraction of proceedings. Hence, the following
ORDER
The petition is allowed in-part. The
Adjudication Orders and the Demand Order
as per Annexures A, B and C are quashed with
opportunity to the petitioner to respond to the
Show Cause Notice dated 27.03.2024 and
28.07.2025 subject to the following
conditions.
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HC-KAR
NC: 2026:KHC:54436
WP No. 22830 of 2026
CNR: KAHC010500052026
[A] The petitioner shall, without further
notice, file responses to the aforesaid
Show Cause Notices with the
reconciliation and the documents to
support the genuineness of the
transactions.
[B] The petitioner shall file the response
and the documents without further
notice by 30.10.2026 .
[C] The petitioner shall also by this date
deposit 10% of the tax covered under
the impugned Adjudication Orders
subject to the outcome in the afore
proceedings.
Sd/-
(B M SHYAM PRASAD)
JUDGE
NV
List No.: 1 Sl No.: 53