Full Judgment Text
- 1 -
NC: 2026:KHC:2845-DB
WA No. 141 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 20 DAY OF JANUARY, 2026
PRESENT
THE HON'BLE MR. JUSTICE S.G.PANDIT
AND
THE HON'BLE MR. JUSTICE K. V. ARAVIND
WRIT APPEAL No. 141 OF 2025 (T-RES)
BETWEEN:
1. THE ADDITIONAL COMMISSIONER OF
CENTRAL TAX,
BENGALURU NORTH WEST DIVISION,
ND
2 FLOOR, SHIVAJINAGAR,
BMTC BUS STAND,
BENGALURU-560051.
2. THE JOINT COMMISSIONER (AUDIT II),
OFFICE OF THE COMMISSIONER OF
CENTRAL TAX (AUDIT),
BENGALURU AUDIT-II,
JSS TOWERS, 100 FEET RING ROAD,
BANASHANKARI III STAGE,
BANGALURU-560085.
3. THE ASSISTANT COMMISSIONER,
CIRCLE V, AUDIT II COMMISSIONERATE
OFFICE OF THE COMMISSIONER OF
CENTRAL TAX (AUDIT),
BENGALURU AUDIT-II,
JSS TOWERS, 100 FEET RING ROAD,
BANASHANKARI III STAGE,
BENGALURU-560 085.
…APPELLANTS
Digitally signed
by VALLI
MARIMUTHU
Location: HIGH
COURT OF
KARNATAKA
(BY SRI ARAVIND V. CHAVAN, SENIOR STANDING COUNSEL)
- 2 -
NC: 2026:KHC:2845-DB
WA No. 141 of 2025
HC-KAR
AND:
1. M/S APKON VENTURES PVT. LTD.,
GARDEN HOUSE, GARDEN ROAD,
TUMKURU 572101,
REP. BY ITS DIRECTOR,
SMT. ASHA PRASANNA KUMAR.
2. THE ASSISTANT COMMISSIONER,
COMMERCIAL TAXES, (AUDIT) 6.3,
DGSTO, III FLOOR,
TH
KIADB BUILDING, 14 CROSS,
II STAGE, PEENYA INDUSTRIAL AREA,
BENGALURU-560058.
…RESPONDENTS
(BY SRI B. N. MAHESH CHANDRA, ADVOCATE FOR R1;
SRI ADITYA VIKRAM BHAT, AGA FOR R2)
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE,
REMOVE OR EXPUNGE THE IMPUGNED PORTION, THE LAST
THREE LINES OF PARA 1 THAT IS "HOWEVER, IT IS SEEN THAT
SINGLE NOTICE HAS BEEN ISSUED TO THE PETITIONER IN
RESPECT OF SHORT PAYMENT OF GST IN RESPECT OF THREE
FINANCIAL YEARS WHICH IS ERRONEOUS" OF THE
JUDGEMENT DATED 10/12/2024 PASSED BY THE LEARNED
SINGLE JUDGE IN WP No.32460/2024.
THIS APPEAL, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.G.PANDIT
and
HON'BLE MR. JUSTICE K. V. ARAVIND
- 3 -
NC: 2026:KHC:2845-DB
WA No. 141 of 2025
HC-KAR
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE K. V. ARAVIND)
Heard Sri. Aravind V Chavan, learned senior standing
counsel for the appellant-Revenue and Sri. B N Mahesh
Chandra, learned counsel for respondent No.1 and Sri. Aditya
Vikram Bhat, learned Additional Government Advocate for
respondent No.2.
2. This appeal is filed by the Revenue challenging the
order passed in Writ Petition No.32460/2024 dated 10.12.2024.
Respondent No.1 had preferred the writ petition questioning
the show-cause notice dated 20.12.2022 issued by the second
appellant. Pursuant to the said show-cause notice, an order
came to be passed under Section 74(9) of the Central Goods
and Services Tax Act, 2017 (for short, “CGST Act”) and Section
73(9) of the Karnataka Goods and Services Tax Act, 2017 (for
short, “KGST Act”). The writ petition was not entertained on the
ground that an alternative and efficacious remedy was available
under Section 107 of the CGST Act.
3. Sri Aravind V. Chavan, learned Senior Standing
Counsel appearing for the appellants, submits that the learned
- 4 -
NC: 2026:KHC:2845-DB
WA No. 141 of 2025
HC-KAR
Single Judge, while relegating the respondent to the appellate
remedy, made observations on the validity of the show-cause
notice. According to the learned Senior Standing Counsel, such
observations touch upon the jurisdiction and correctness of the
show-cause notice.
4. Sri B.N. Mahesh Chandra, learned counsel
appearing for respondent No.1, submits that the order passed
in appeal was the subject matter of Writ Petition
No.35830/2025, wherein this Court, by judgment dated
17.12.2025, has set aside the show-cause notice and the
consequential order. Hence, it is submitted that the present
petition does not survive for further consideration.
5. Having considered the submissions of learned
counsel for the parties, we notice that, under the impugned
order, the respondent-assessee was relegated to the statutory
remedy under Section 107 of the CGST Act. While doing so, the
learned Single Judge made an observation to the effect that
issuance of a single show-cause notice in respect of three
financial years is erroneous. Such an observation touches upon
the correctness and jurisdiction relating to the issuance of the
- 5 -
NC: 2026:KHC:2845-DB
WA No. 141 of 2025
HC-KAR
show-cause notice. In view of the respondent being relegated
to the appellate remedy, the observation made by the learned
Single Judge on the correctness of the common notice was
unnecessary.
6. In that view of the matter, we are inclined to
interfere with the impugned order only to a limited extent by
deleting the observation recorded therein, which reads as
under:
" ... However, it is seen that single notice has
been issued to the petitioner in respect of short
payment of GST in respect of three financial years,
which is erroneous."
7. The aforesaid observation is hereby set aside.
Except to the above extent, the writ appeal is not entertained.
Accordingly, dismissed .
Sd/-
(S.G.PANDIT)
JUDGE
Sd/-
(K. V. ARAVIND)
JUDGE
DDU/List No.: 2 Sl No.: 16