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Karnataka High Court

M/S. Maruthi Departmental Stores vs The Assistant Commissioner Of ... on 13 March, 2026

Author: S Sunil Dutt Yadav

Bench: S Sunil Dutt Yadav

                                       -1-
                                                    NC: 2026:KHC:15445
                                                   WP No. 8554 of 2026


             HC-KAR




             IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                    DATED THIS THE 13TH DAY OF MARCH, 2026

                                     BEFORE
                  THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
                    WRIT PETITION NO. 8554 OF 2026 (T-RES)
             BETWEEN:

             1.    M/S. MARUTHI DEPARTMENTAL STORES
                   REPRESENTED BY ITS PROPRIETRIX
                   SMT. GAWARI DEVI
                   NO.227, AMS LAYOUT
                   LATTICE NETWORK ROAD
                   VIDHYARANYAPURA
                   BENGALURU - 560 097
                   AGED ABOUT 49 YEARS
                   GSTIN: 29AFVPD8397P1Z2
                                                        ... PETITIONER
             (BY SRI. PRANAY SHARMA Y, ADVOCATE)
Digitally
signed by    AND:
VIJAYA P
Location:
HIGH COURT   1.    THE ASSISTANT COMMISSIONER OF
OF
KARNATAKA          COMMERCIAL TAXES
                   (AUDIT-6.1), DGSTO-6
                   3RD FLOOR, KIADB BUILDING,
                   14TH CROSS, 2ND STAGE
                   PEENYA INDUSTRIAL AREA,
                   BENGALURU - 560 058

             2.    THE ASSISTANT COMMISSIONER OF
                   COMMERCIAL TAXES
                   (AUDIT-6.1), DGSTO-6,
                           -2-
                                       NC: 2026:KHC:15445
                                    WP No. 8554 of 2026


HC-KAR




     3ND FLOOR,
     KIADB BUILDING, 14TH CROSS,
     2ND STAGE, PEENYA INDUSTRIAL AREA
     BENGALURU - 560 058

3.   THE JOINT COMMISSIONER OF
     COMMERCIAL TAXES DGSTO-6
     3RD FLOOR, KIADB BUILDING, 14TH CROSS,
     2ND STAGE, PEENYA INDUSTRIAL AREA,
     BENGALURU - 560 058

4.   THE COMMISSIONER OF COMMERCIAL TAXES,
     KARNATAKA, VANIJYA THERIGE KARYALAYA,
     GANDHI NAGAR, KALIDASA ROAD,
     BENGALURU-560 009.

5.   CENTRAL BOARD OF INDIRECT TAXES
     AND CUSTOMS,
     REPRESENTED BY ITS CHAIRPERSON,
     NORTH BLOCK,
     NEW DELHI-110 001

6.   STATE OF KARNATAKA,
     REPRESENTED BY SECRETARY
     FINANCE DEPARTMENT,
     VIDHANA SOUDHA,
     BANGALORE 560 001.
                                         ...RESPONDENTS
(BY SRI. HEMAKUMAR, AGA FOR R1 TO R4 AND R6

      SRI. JEEVAN J NEERALGI, ADVOCATE FOR R5)

      THIS W.P. IS FILED UNDER ARTICLES 226 AND 227

OF THE CONSTITUTION OF INDIA PRAYING TO I.ISSUE A
                           -3-
                                        NC: 2026:KHC:15445
                                       WP No. 8554 of 2026


HC-KAR




WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF

A WRIT OF CERTIORARI QUASHING THE ORDER IN

ORIGINAL PASSED UNDER SECTION 73 OF THE ACT BY

THE RESPONDENT NO.1 DATED 12.04.2024 FOR THE TAX

PERIOD         2018-19          VIDE           REFERENCE

NO.ZD2904240299806.      COPY   OF      THE   ORDER     IN

ORIGINAL DATED 12.04.2024 IS ENCLOSED AND MARKED

AS ANNEXURE A1 AND ETC.


     THIS PETITION, COMING ON FOR PRELIMINARY

HEARING, THIS DAY, ORDER WAS MADE THEREIN AS

UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV



                     ORAL ORDER

The petitioner has sought for setting aside of the Order-in-Original at Annexure-A1 passed under Section 73 of the Central Goods and Service Tax Act, 2017 and Karnataka Goods and Service Tax Act, 2017. -4-

NC: 2026:KHC:15445 WP No. 8554 of 2026 HC-KAR

2. Learned counsel for the petitioner submits that the proceedings have culminated in an ex-parte order. It is submitted that the petitioner was not able to take his stand as regards the show cause notice, which was issued on the premise that excess input tax credit was claimed and that there was a discrepancy between GSTR-3B returns and the returns of the supplier in GSTR-2A.

3. The petitioner further submits that he is in a position to demonstrate that there is no discrepancy between GSTR-3B and the declaration in GSTR-2A and that the lapse in not participating in the proceedings is due to bona fide reasons and the order may be set aside and the matter be remitted to the stage of reply to the show cause notice.

4. Perused the order at Annexure-A1.

5. It is noticed that the authority has observed that the input tax credit availed by the petitioner was not -5- NC: 2026:KHC:15445 WP No. 8554 of 2026 HC-KAR reflected in the declaration of the supplier in GSTR-2A returns.

6. Taking note of the assertion of the petitioner that the alleged discrepancy between GSTR-3B and GSTR- 2A would be demonstrated by way of material, it would be appropriate to set aside the orders at Annexures-A1 and B1. It is also noticed that the petitioner has suffered an identical order at Annexure-B1 and the authority had also noticed similar discrepancy as regards GSTR-3B vis-à-vis GSTR-2A.

7. In light of the identical observations made and noticing that both the orders are ex-parte, the order at Annexures-A1 and B1 are set aside and the matter is remitted to the stage of reply to the show cause notices vide Annexures-A2 and B2. All contentions are kept open.

8. The Petitioner to appear without further notice before respondent Nos.1 and 2 on 16.04.2026.

9. Accordingly, the petition is disposed of. -6-

NC: 2026:KHC:15445 WP No. 8554 of 2026 HC-KAR

10. The prayer regarding challenge to the notifications at Annexures-C1, C2, D1, D2 is disposed of as not calling for adjudication, in light of remanding of the matter.

SD/-

(S SUNIL DUTT YADAV) JUDGE SHS List No.: 1 Sl No.: 30