SRI KALLANAYAKANAHALLI NANJUNDAPPA MANJUNATH vs STATE OF KARNATAKA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:54298
WP No. 28551 of 2026
CNR: KAHC010622742026
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. 28551 OF 2026 (T-RES)
BETWEEN:
SRI KALLANAYAKANAHALLI
NANJUNDAPPA MANJUNATH
AGED ABOUT 48 YEARS,
PROP. M/S. MARUTHI ENTERPRISES,
NANJEGOWDA COMPLEX,
NO. 32, GROUND FLOOR,
B M ROAD, KUNIGAL 572 130.
…PETITIONER
Digitally
signed by
VANAMALA
N
Location:
HIGH
COURT OF
KARNATAKA
(BY SMT. SHYAMALA V DEVAGIRI., ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF FINANCE,
GOVERNMENT OF KARNATAKA,
AMBEDKAR VEEDHI,
BENGALURU - 560 001.
2. THE ASSISTANT COMMISSIONER
OF COMMERCIAL TAXES (AUDIT) - 2, II FLOOR,
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NC: 2026:KHC:54298
WP No. 28551 of 2026
CNR: KAHC010622742026
VANIJYA TERIGE SANKEERNA,
SIDDARAMESHWARA EXTENSION,
TUMAKURU-572 103.
…RESPONDENTS
(BY SRI.K. HEMA KUMAR., AGA A/W
SMT. MALAVIKA PRASAD., HCGP)
THIS WP IS FILED UNDER ARTICLES 226 OF THE
CONSTITUTION OF INDIA PRAYING TO (A) QUASH THE
ADJUDICATION ORDER BEARING NO. ACCT/(A)-
2/TMK/ADJ/T.NO. /2024-25 AND DATED 31/01/2025
DRC 07 BEARING REFERENCE NO. ZD290125127306J
DATED 31/01/2025 ISSUED BY THE RESPONDENT AT
ANNEXURE-B AS VIOLATIVE OF ARTICLES 14, 19 AND
300A BEING UNREASONABLE, ARBITRARY,
OPPRESSIVE, EXCESSIVE AND PREMEDITATED;
(B) QUASH THE DEMAND BEARING REFERENCE NO.
ZD290125127306J DATED 31/01/2025 ISSUED BY THE
RESPONDENT AT ANNEXURE-B, AS VIOLATIVE OF
ARTICLES 14, 19 AND 300A BEING UNREASONABLE,
ARBITRARY, OPPRESSIVE, EXCESSIVE AND
PREMEDITATED; (C) DECLARATION DECLARING THAT,
THE PETITIONER IS NOT LIABLE TO PAY THE INTEREST
U/S 50 OF THE CGST ACT, FOR THE PERIOD 2020-21
IN SO FOR AS THE PETITIONER HIS CONCERNED;(D)
ISSUE A WRIT OF DECLARATION DECLARING THAT,
THE PETITIONER IS NOT LIABLE TO PAY THE PENALTY
U/S 122 (2) (A) OF THE CGST AND SGST ACTS.
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HC-KAR
NC: 2026:KHC:54298
WP No. 28551 of 2026
CNR: KAHC010622742026
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 asserts that it offers supply of
manpower to the educational institutions and that
supply is exempt from GST under the Notification
dated 28.06.2017 in No.12/2017. The petitioner has
called in question the Adjudication Order dated
31.01.2025 [ Annexure-B ] under Section 73(9) of the
Karnataka Goods and Services Tax Act, 2017/the
Central Goods and Services Tax Act, 2017 [for short,
‘ the KGST/CGST Act’ ] and for declaration that the
petitioner is not liable to pay either the penalty or
interest. The adjudication is completed with the
Adjudicating Officer observing that the petitioner has
not filed any response despite communication of the
Audit Note, the Endorsement about failure to file
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HC-KAR
NC: 2026:KHC:54298
WP No. 28551 of 2026
CNR: KAHC010622742026
response, the service of Intimation and show cause
notices.
2. Mrs. Shyamala V. Devagiri, the learned
counsel for the petitioner, and Mr. Hema Kumar, a
learned Additional Government Advocate who accepts
notice for the respondents along with Ms. Malavika
Prasad [ a learned High Court Government Pleader ],
are heard on whether this Court must intervene with
the Adjudication Order and restore the proceedings
for reconsideration with another opportunity to the
petitioner to file response to the Show Cause Notice
dated 28.11.2024.
3. The petitioner's specific case is that it has
supplied manpower viz. , has offered the services of
First Division Assistants, Teachers, Security Guards,
Attendants, Cooks, Assistants, and Cleaners to M/s.
Morarji Desai Residential School, Ramanagar under
different Work Orders issued by the Department of
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Backward Classes Welfare Department, Zilla
Panchayath, Ramanagar and that these supplies are
exempted under the Notification dated 28.06.2017.
Mrs. Shyamala V. Devagiri, relying upon these
circumstances, submits that the petitioner could not
produce invoices to substantiate the petitioner's
cause because the petitioner, being dependent on a
Chartered Accountant, was not aware of the
proceedings initiated as the Accountant did not
inform the petitioner about the proceedings.
4. This assertion is considered to answer the
question as afore in the light of the petitioner's
specific case that the supplies are exempted. If indeed
the petitioner could demonstrate, producing
documents, to show that its supplies are exempted,
there would be no occasion for confirmation,
preventing protracted litigation. This Court,
answering the question as afore, opines that the
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petitioner must have another opportunity to respond
to the Show Cause Notice dated 28.11.2024 but on
terms. Hence, the following:
ORDER
A. The petition is allowed-in-part and the
Adjudication Order dated 31.01.2025
[ Annexure-B ] is quashed restoring the
proceedings to the stage of reply by the
petitioner to the Show Cause Notice dated
28.11.2024.
B. The petitioner shall, without further notice, file
reply and the supporting documents on
06.11.2026 and by that day shall also ensure
10% of the tax covered under the Adjudication
Order is deposited subject to the outcome in
the restored proceedings.
C. The second respondent, if the petitioner avails
these opportunities and produces documents,
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shall consider the same and by cogent reasons
decide on whether there must be an
affirmation of the proposition in the Show
Cause Notice.
Sd/-
(B M SHYAM PRASAD)
JUDGE
SA
Ct:sr