SHRI.B.T.SIDDAPPA (SHRI.BUDANOOR THAMMAIAH SIDDAPPA) vs THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:51355
WP No. 28817 of 2026
C/W WP No. 29033 of 2024
CNR: KAHC010619282026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 19 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD
WRIT PETITION NO. 28817 OF 2026 (T-RES)
C/W
WRIT PETITION NO. 29033 OF 2024 (T-RES)
IN WP No. 28817/2026
BETWEEN:
SHRI.B.T.SIDDAPPA
(SHRI.BUDANOOR THAMMAIAH
SIDDAPPA)
AGED ABOUT 68 YEARS,
S/O THAMMAIAH,
PROPRIETOR, M/S B T SIDDAPPA,
PWD CONTRACTOR, RESIDING
AT NO. 1296, 2ND CROSS, NETHRUNAGAR
MANDYA DISTRICT - 571 401.
…PETITIONER
Digitally
signed by
VANAMALA
N
Location:
HIGH
COURT OF
KARNATAKA
(BY SRI.JOSEPH VARGHESE., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF
COMMERCIAL TAXES
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WP No. 28817 of 2026
C/W WP No. 29033 of 2024
CNR: KAHC010619282026
LGSTO 210, CHIKKAMANDYAKERE,
COMMERCIAL TAX OFFICES,
VIVEKANANDA NAGARA,
NAGAMANGALA ROAD, MANDYA-571 402.
2. THE EXECUTIVE ENGINEER
PUBLIC WORKS, PORTS AND
INLAND TRANSPORT DEPARTMENT DIVISION,
MYSURU-570 010.
…RESPONDENTS
(BY SMT.MALVIKA PRASAD., HCGP)
THIS WP IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE
ORDER(S), DIRECTION(S), WRIT(S) IN THE NATURE OF
CERTIORARI TO SET ASIDE THE INTIMATION IN FORM
GST DRC-01A DATED 11.06.2025 (RFN
MA290625052658D) AND THE SUMMARY THEREOF
DATED 12.06.2025 BEARING REFERENCE NO.
ZD290625037244A, ISSUED BY RESPONDENT NO. 1
UNDER SECTION 74(5) OF THE ACT FOR F.Y. 2018-19
(ANNEXURE-F AND ANNEXURE-F1); B) SET ASIDE THE
SHOW CAUSE NOTICE DATED 25.06.2025 (RFN
MA2906252430116) AND THE SUMMARY OF THE SHOW
CAUSE NOTICE IN FORM GST DRC-01 DATED
25.06.2025 BEARING REFERENCE NO.
ZD290625091527U, ISSUED BY RESPONDENT NO. 1
UNDER SECTION 74 OF THE ACT FOR F.Y. 2018-19
(ANNEXURE - G AND ANNEXURE - G1); C) SET ASIDE
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WP No. 28817 of 2026
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THE IMPUGNED ORDER DATED 30.12.2025 BEARING
REFERENCE NO. MA291225271382U PASSED BY
RESPONDENT NO. 1 UNDER SECTION 74 OF THE
CGST/SGST ACT, 2017 FOR F.Y. 2018-19 (ANNEXURE-
H), AND THE SUMMARY OF THE ORDER IN FORM
GSTDRC-07 DATED 30.12.2025 BEARING THE
REFERENCE NO. ZD291225230654D (ANNEXURE-H1);
D) DECLARE THAT THE INITIATION AND CONTINUATION
OF PROCEEDINGS UNDER SECTION 74 OF THE ACT,
FOR THE SAME TAX PERIOD (F.Y. 2018-19) AND THE
SAME SUBJECT MATTER ALREADY ADJUDICATED
UNDER SECTION 73 OF THE ACT BY THE SAME
OFFICER, IS WITHOUT JURISDICTION, ILLEGAL AND
VOID; E) DIRECTING RESPONDENT NO. 2 TO
FORTHWITH CONSIDER AND DISPOSE OF THE
PETITIONER'S REPRESENTATION(S) AND TO ENTER
INTO A SUPPLEMENTARY AGREEMENT WITH THE
PETITIONER, AND TO PAY / REIMBURSE TO THE
PETITIONER THE DIFFERENTIAL GST AMOUNT
PAYABLE ON THE WORKS CONTRACTS EXECUTED BY
THE PETITIONER FOR F.Y. 2018-19, IN TERMS OF THE
DIRECTIONS OF THIS COURT IN W.P. NO. 9721/2019
(CHANDRASHEKARAIAH), ANNEXURE-B. AS AFFIRMED
AGAINST THE AWARDING DEPARTMENTS/EMPLOYERS
BY THE HON BLE DIVISION BENCH IN ITS JUDGMENT
DATED 10.06.2026, TOGETHER WITH ANY
CONSEQUENTIAL RELIEF FLOWING THEREFROM.
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WP No. 28817 of 2026
C/W WP No. 29033 of 2024
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IN WP NO. 29033/2024
BETWEEN:
SHRI B T SIDDAPPA
AGED ABOUT 66 YEARS
S/O THAMMAIAH
RESIDING AT
1296, 2 CROSS,
NEHRUNAGAR,
MANDYA DISTRICT-571 401.
...PETITIONER
(BY SRI. JOSEPH VARGHESE., ADVOCATE)
AND:
1. THE ASSISTANT COMMISSIONER OF
LOCAL GOODS AND SERVICES TAX,
LGSTO-210, CHIKKAMANDYAKERE
COMMERCIAL TAX OFFICES.
VIVEKANANDA NAGAR,
NAGAMANGALA ROAD
MANDYA - 571 402.
2. OFFICE OF THE EXECUTIVE ENGINEER
PUBLIC WORKS,
PORTS AND INLAND
TRANSPORT DEPARTMENT
DIVISION MYSURU-570010.
3. THE JOINT COMMISSIONER
OF CENTRAL TAX,
GST COMMISSIONERATE
MYSORE 570 011.
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4. STATE BANK OF INDIA
V.V. ROAD, MANDYA.
KARNATAKA-571 401
REPRESENTED BY ITS MANAGER.
...RESPONDENTS
(BY SMT.MALAVIKA PRASAD., HCGP FOR R1 & R2;
SRI. ARAVIND V CHAVAN., ADVOCATE FOR R3;
R4 IS SERVED)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO SET
ASIDE THE SHOW CAUSE NOTICE BEARING NO. ACCT-
LGSTO-210/MDY/T.NO.NIL/2023-24 ISSUED BY THE R-
1 DTD. 18.11.2023 FOR FY 2018-19 (ANNX-A); SET
ASIDE THE SUMMARY SHOW CAUSE NOTICE BEARING
REFERENCE NUMBER ZD291123033510W ISSUED BY
THE R-1 DTD. 22.11.2023 IN FORM GST DRC-01 FOR FY
2018-19(ANNX-A1); SET ASIDE AND QUASH THE
IMPUGNED ORDER BEARING NO. ACCT/LGSTO-
210/MDY/T.NO.NIL/2024-25 DATED 29.04.2024
PASSED BY R-1 UNDER SECTION 73 OF THE KGST AND
CGST ACT, 2017, FOR FY 2018-19 (ANNX-B); SET ASIDE
AND QUASH THE SUMMARY IMPUGNED ORDER
BEARING REFERENCE NO. ZD290424075171F ORDER
DATED 29.04.2024 ISSUED BY R-1 UNDER SECTION 73
OF THE KGST AND CGST ACT, 2017 FOR FY 2018-19
(ANNX-B1); ALTERNATIVELY IN THE EVENT THE
DEMAND UNDER SECTION 73 OF THE GST ACT, 2017
ORDER BEARING NO. ACCT/LGSTO-
210/MDY/T.NO.NIL/2024-25 DATED 29.04.2024 FOR FY
2018-19 (ANNX-B) IS NOT SET ASIDE IN TOTO / OR
REVIVES DUE TO OPERATION OF LAW, THEN ISSUE A
WRIT OF MANDAMUS ORDER OR DIRECTION IN THE
NATURE OF MANDAMUS DIRECTING THE R-2 TO
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ENTER INTO A SUPPLEMENTARY TENDER
AGREEMENT, OR ANY OTHER PERMISSIBLE
ARRANGEMENT REVISE THE RATE OF APPLICABLE
TAXES AND PAY THE DIFFERENTIAL GST LIABILITY
IMOSED ON THE PETITIONER, TO THE TUNE OF RS.
22,40,000/- (CGST AND KVAT COMPONENT) AND ALSO
PAY THE PETITIONER INTEREST AT THE APPLICABLE
RATES AND PENALTY TO THE TUNE OF RS.20,55,200/-
AND RS. 2,24,000/- RESPECTIVELY; SET ASIDE AND
QUASH THE FORM GST DRC-13 BEARING NO.
ACCT/LGSTO-210/MDY/T.NO.710/2024-25 ISSUED ON
05.10.2024 AND RECEIVED ON 16.10.2024 ISSUED BY
R-1 FOR THE FOR THE FINANCIAL YEAR 2018-19
(ANNX-C).GRANT AN INTERIM ORDER TO STAY THE
OPERATION OF THE IMPUGNED ORDER BEARING NO.
ACCT/LGSTO-210/MDY/T.NO.NIL/2024-25 DTD.
29.04.2024 PASSED BY R-1 UNDER SECTION 73 OF
THE KGST AND CGST ACT, 2017, FOR FY 2018-19
(ANNX-B) AND ALL CONSEQUENTIAL ACTION INITIATED
THEREUNDER, INCLUDING BUT NOT LIMITED TO
OPERATION OF FORM GST DRC-13 BEARING NO.
ACCT/LGSTO-210/MDY/T.NO.710/2024-25 ISSUED ON
05.10.2024 AND RECEIVED ON 16.10.2024 ISSUED BY
R-1 FOR THE FOR THE FINANCIAL YEAR 2018-19
(ANNX-C).
THESE PETITIONS, COMING ON FOR ORDERS,
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
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NC: 2026:KHC:51355
WP No. 28817 of 2026
C/W WP No. 29033 of 2024
CNR: KAHC010619282026
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The petitioner is confronted with two
proceedings under Section 73 of the Central Goods
and Services Tax Act, 2017 and the Karnataka Goods
and Services Tax Act, 2017 [for short, ‘ the
CGST/KGST Act ’] for the same financial year [2018-
2019] and on the same propositions. Therefore, these
writ petitions have been preferred. The following
which are under Section 73 of the CGST/KGST Act
are impugned in W.P. No. 29033/2024:
Description Date Annexure
Show Cause Notice 18.11.2023 Annexure-A
Summary of Show 22.11.2023 Annexure – A1
Cause Notice
Adjudication Order 29.04.2024 Annexure-B
Summary of the
Adjudication Order
29.04.2024 Annexure –B1
Garnishee/
Recovery Notice
16.10.2024 Annexure-C
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2. The petitioner has also sought for
alternative prayer in seeking directions to the
Executive Engineer, Public Works, Ports and Inland
Transport Department Division, Mysuru [ the second
respondent in this petition ] to enter into a
Supplementary Tender Agreement or otherwise
permissible arrangement to revise the rate of
applicable taxes and pay the Differential GST
Liability. The petitioner in seeking these reliefs has
inter alia relied upon the decision of this Court in
W.P. No. 9721/2019 and connected matters [ Sri
Chandrashekharaiah and others v. State of
Karnataka and others , which is decided on
11.04.2023].
3. This Court has granted an interim order
on 05.11.2024, and during the currency of this
interim order, the proceedings are initiated under
Section 74 of the CGST/KGST Act. As such, the
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petitioner has preferred the next writ petition in WP
No. 28817/2026, and the details of these impugned
proceedings are as follows:
Description Date Annexure
The Intimation Form
GST DRC-01A and
the Summary thereof
Annexure-F & F1
11.06.2025
and
12.06.2025
The Show Cause
Notice and the
Summary thereof in
Form GST DRC-01
25.06.2025 Annexure – G & G1
30.12.2025 Annexure-H & H1
Adjudication Order
and the Summary of
the Adjudication
Order in Form GST
DRC-07
The petitioner, even in this petition, has sought for
directions to the Executive Engineer, Public Works,
Ports and Inland Transport Department Division,
Mysore [ the second respondent even in this petition ] to
enter into an agreement and pay/reimburse
differential GST amount in terms of the directions of
this Court in Chandrashekharaiah’s case [supra] .
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4. The principal contention is that there
cannot be two different proceedings for the same
financial period and on the same propositions. As
regards the proceedings impugned in W.P.
No.29033/2024, the petitioner relies upon the
decision of this Court in Chandrashekharaiah’s
case [supra] . Sri Joseph Varghese, the learned
counsel for the petitioner and Sri K. Hema Kumar, a
learned Additional Government Advocate, are heard
for the disposal of these petitions in the light of the
decision of a Division Bench of this Court in Writ
Appeal No.652/2026.
5. The writ appeal in W.A. No.652/2026 is
filed as against this Court’s order dated 20.03.2025
in W.P. No.29110/2024, and this order dated
20.03.2025 is in the light of the decision in Sri.
Chandrashekharaiah’s case [supra] . The Division
Bench in W.A. No.652/2026 has observed thus
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opining that no directions can be issued to the tax
authorities to act contrary to the statutory terms.
8. In Chandrashekharaiah case (supra), the
learned Single Judge passed blanket orders,
inter alia, directing that the differential of the
tax liability on account of the change from the
KVAT regime to the GST regime be reimbursed
to the concerned petitioners in those petitions.
The learned Single Judge directed the
concerned respondents, including the
employers, who had awarded the works
contracts to the writ petitioners, to bear the
differential tax burden on account of the
change from the KVAT regime to the GST
regime in the manner directed therein.
Directions were also issued to the GST
authorities not to take any precipitate steps, to
reimburse the GST, and to permit filing of
revised returns
9. We are unable to accept that such blanket
directions can be issued, particularly in the
aforesaid manner, without reference to the
specific terms and conditions of the contracts.
In any event, no directions can be issued to the
tax authorities to act contrary to the terms of
the relevant statutes. In the present case, the
learned single judge has mainly followed the
operative directions of the decision of the case
of Chandrashekharaiah (supra) and has
passed orders and directions in similar terms.
It is ex-facie clear that the directions as
regards the facts of the present case.
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10. This Court, in view of this decision by the
Division Bench, is of the opinion that the petitioner
cannot succeed in the writ petition in W.P. No.
29033/2024 relying upon this Court’s decision in Sri
Chandrashekharaiah’s case [supra] . Therefore,
there cannot be any interference with the
adjudication order dated 29.04.2024 [ Annexure-B ]
and the Summary thereof [ Annexure-B1 ] or direction
to the common first respondent to defer recovery
under these orders, and if the petitioner can pursue
his remedy against the common second respondent,
he must initiate appropriate proceedings where the
agreed terms can be examined with due opportunity.
At this stage, Sri Joseph Varghese makes a request
for reserving liberty to the petitioner to institute a
civil suit against the common second respondent,
and this Court can only observe that any liberty in
this regard will be subject to all just exceptions.
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11. However, the petitioner must succeed in
the writ petition in W.P. No. 28817/2026. The
proceedings impugned in this writ petition are under
Section 74 of the CGST/KGST Act after the
Adjudication Order dated 29.04.2024 for the same
financial year under Section 73 of the CGST/KGST
Act and when this Court is seized of the petitioner’s
grievance with this order. Further, the recovery of the
GST for this financial year [2018-19], if due, will be
under the Adjudication Order dated 29.04.2024, and
because there cannot be two parallel proceedings
especially with the later proceedings being initiated
under Section 74 of the CGST/KGST Act, the
following.
ORDER
[A] The petition in W.P.No.28817/2026 is
allowed quashing the following.
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Description Date Annexure
The Intimation
Form GST DRC-
01A and the
Summary thereof
11.06.2025
and
12.06.2025
Annexure-F
& F1
The Show Cause
Notice and the
Summary thereof in
Form GST DRC-01
Annexure –
G & G1
Adjudication Order
and the Summary
of the Adjudication
Order in Form GST
DRC-07
25.06.2025
30.12.2025
Annexure-H
& H1
[B] The writ petition in W.P. No.
29033/2024 stands disposed of in the
light of the Division Bench’s order
dated 08.09.2026 in Writ Appeal
No.652/2026.
[C] The petitioner will be at liberty to
work out its remedy against the
second respondent, but this liberty
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will be subject to all just exceptions in
law.
Sd/-
(B M SHYAM PRASAD)
JUDGE
NV *