M/S. Reliflex Exim Services (Opc) Pvt. Ltd., v. Assistant Commissioner of Commercial Taxes

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 4388 OF 2026 (T-RES) BETWEEN: M/S. RELIFLEX EXIM SERVICES (OPC) PVT. LTD., (COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013) NO. 78 SY. NO. 120/2, DUO TOWN, MANSON ANJANPURA, 80 FEET ROAD GUNDAPPA LAYOUT, GOTTIGERE, BENGALURU - 560 083 …PETITIONER (BY SRI. SWAMY M M.,ADVOCATE) AND: ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-027, DGSTO-4, TTMC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560 083 …RESPONDENT (BY SRI HEMA KUMAR K. AGA ) by SHARADAVANI B Location: HIGH COURT OF KARNATAKA e -e2e-eeeee e e NC:(2026:KHC:13499 WP(No.(4388(of(2026 THIS,WP,IS,FILED,,UNDER,ARTICLES,226,AND,227,OF, THE,CONSTITUTION,OF,INDIA,PRAYING,TO,ISSUE,A,WRIT,OF, CERTIORARI, OR, ANY, OTHER, APPROPRIATE, WRIT,, ORDER, OR, DIRECTION,QUASHING,THE,IMPUGNED,ADJUDICATION,ORDER, DATED, 21.04.2023, BEARING, NO.ACCT/LGSTO-27/DRC07/16(4)/3/2022-23, PASSED, BY, THE, RESPONDENT, UNDER,SECTION,73,OF,KGST/CGST,ACT,FOR,THE,F.,Y.,APRIL,, 2019,MARCH,,2020,AND,ORDER,DATED,28.08.2024,PASSED,IN, NO., ACCT/LGSTO-27/DRC07/143/2024-25, BY, THE, RESPONDENT, UNDER, THE, CGST/KGST, ACTS, FOR, THE, FINANCIAL,YEAR,2019-2020,,RESPECTIVELY,VIDE,ANNEXURE,-, A,AND,A1.,AND,ETC.,, , THIS, PETITION,, COMING, ON, FOR, ORDERS,, THIS, DAY,, ORDER,WAS,MADE,THEREIN,AS,UNDER:, CORAM:, HON'BLE,MR.,JUSTICE,S,SUNIL,DUTT,YADAV ORAL(ORDER , Sri, Hema, Kumar,, learned, Additional, Government, Advocate,is,directed,to,accept,notice,for,the,respondent., , 2., The, petitioner, has, sought, for, setting, aside, of, the, impugned, 'Order, of, Adjudication', dated, 21.04.2023, passed, by, the, Respondent, under, Section, 73, of, KGST/CGST,Act,for,the,Financial,Year,,April,,2019,-,March,,

2020 and impugned Order dated 28.08.2024 passed by the respondent under the CGST/KGST Acts for the Financial Year 2019-2020 respectively at Annexure-'A' and 'A1'.

¶3It is submitted that, the petitioner did not file reply to the Show-Cause notice due to certain reasons beyond their control including COVID-19 Pandemic.

¶4It is submitted that the Orders passed are exparte Orders and the petitioner may be afforded an opportunity to satisfy the Authority regarding alleged discrepancies between Form GSTR-3B and Form GSTR-2A.

¶5Perused the impugned 'Orders' at Annexure-'A' and Annexure-'A1'.

¶6The petitioner submits that the discrepancy as allegedly noticed by the revenue regarding the ITC available as per GSTR-3B and ITC available as per GSTR-

2A is a matter for reconciliation which would be demonstrated by placing appropriate material.

¶7Insofar as impugned 'Order' at Annexure-'A' is concerned, the Authority has rejected the claim of ITC on the ground that the claim was made belatedly. It is further observed that, in light of Section 16(4) of the Karnataka Goods and Services Tax Act, 2017, (for short 'KGST Act') filing of returns beyond due date prescribed for filing of annual returns would render the claim for ITC in-eligible.

¶8Insofar as the impugned Order at Annexure-'A1' is concerned, it is noticed that the Authority has concluded the proceedings ex-parte, while observing that there is an excess claim of ITC in GSTR-3B return as compared to GSTR-2A return, uploaded by the supplier.

¶9In both these matters, the petitioner submits that they would appear before the Authority and make out

their case and meet the grounds raised in the Show-Cause Notice.

¶10Accordingly, in light of the submission made by the petitioner and as the petitioner undertakes to make deposit of 10% of the disputed tax in both the Order at Annexure-'A' and Annexure-'A1', Order could be passed putting the petitioner on terms. As the petitioner has offered to make payment to ensure that there will be no revenue loss for the present, it would be appropriate to set aside Order at Annexures-'A' and 'A1', and remit the matter back to the stage of reply to the Show-Cause Notice.

¶11The petitioner would appear before the respondent on 08.04.2026 without further notice.

¶1210% of the disputed demand raised insofar as the Order at Annexures-'A' and 'A1' respectively to be satisfied within 3 weeks from today.

¶13All contentions are kept open. Needless to state that, if petitioner is absent on the next date, indulgence granted by this Court would stand rescinded. The petitioner also undertakes to co-operate in conclusion of the proceedings as per law.

Accordingly, the petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE HR List No.: 1 Sl No.: 24