M/S Elegance Enterprises v. The State of Karnataka

e -e1e-eeeee e e NC:(2026:KHC:21587 WP(No.(9853(of(2026 IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( STDATED(THIS(THE(21 (DAY(OF(APRIL,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(S(SUNIL(DUTT(YADAV( WRIT(PETITION(NO.(9853(OF(2026((T-RES) BETWEEN:( M/S.,ELEGANCE,ENTERPRISES,, TH THNO.339,,6 ,,MAIN,6 ,,SECTOR,,, HSR,LAYOUT,,, BENGALURU,URBAN,-,560,102., (REPRESENTED,BY,ITS,PARTNER,, MR.PAWAN,KUMAR,TRIPATHI,,, AGE,40,YRS), IT,IS,A,PARTNERSHIP,FIRM., …PETITIONER, (BY,SRI.,ASHOK,ARVINDRAO,DESHPANDE,,ADVOCATE), AND: Digitally 1., THE,STATE,OF,KARNATAKA,, signedtiby VIJAYA0P VIDHANA,SOUDHA,,, Location: HIGH BENGALURU,-,560,001,, COURT0OF KARNATAKA (REPRESENTED,BY,ITS,, FINANCE,SECRETARY).,

2., THE,ASSISTANT,COMMISSIONER,OF,, COMMERCIAL,TAXES,, THLGSTO-17,,DGSTO-04,,6 ,,FLOOR,, TTMC,BUILDING,,(BMTC,DEPOT),,, 80,FEET,ROAD, TH6 ,,BLOCK,,KORAMANGALA,,, BENGALURU,-,560,095., e -e2e-eeeee e e NC:(2026:KHC:21587 WP(No.(9853(of(2026

3., M/S.,GODREJ,PROPERTIES,LIMITED,, TH9 ,,FLOOR,,UNIT,NO.4,AND,5,,, GODREJ,CENTRE,,INDIRANAGAR,,, BENGALURU,-,560,038., …RESPONDENTS, (BY,SMT.,JYOTHI,M.,MARADI,,HCGP), , THIS, WP, IS, FILED, UNDER, ARTICLES, 226, AND, 227, OF, THE, CONSTITUTION, OF, INDIA, PRAYING, TO, ISSUE, AN, APPROPRIATE,WRIT,,ORDER,OR,A,DIRECTION,IN,THE,NATURE, OF, A, WRIT, OF, CERTIORARI, QUASHING, THE,, ADJUDICATION, ORDER, CONTAINED, IN, REFERENCE, NO.ACCT/, LGSTO-17/2A/, DRC-07/2024-25,,DATED,20.07.2024,,ANNEXED,HERETO,AND, MARKED, AS, ANNEXURE, D, AND, SUMMARY, ORDER, IN, FORM, DRC-07, IN, REFERENCE, NO., ZD290724063879J, DATED,

20.07.2024,ANNEXED,HERETO,AND,MARKED,AS,ANNEXURE,D1, BOTH,ISSUED,BY,THE,RESPONDENT,NO.2,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 Learned High Court Government Pleader accepts notice for respondents No.1 and 2. Notice to respondent No.3 is dispensed with.

¶2The petitioner has challenged the order of adjudication at Annexure-D and the summary order at Annexure-D1 as well as recovery proceedings initiated pursuant to the order of adjudication.

¶3It is the case of the petitioner that the order of adjudication at Annexure-D is an exparte order that has been passed without the benefit of any reply to the show-cause notice. It is further submitted that the authorities have adjudicated on the premise that there is an excess claim of ITC in GSTR-3B than that which was available in GSTR-2A. It is submitted that such discrepancy as noticed by the authority is factual in nature and if an opportunity is granted, petitioner would meet the grounds made out in the show-cause notice. It is submitted that due to

bonafide lapse, petitioner was not able to make out reply to the said show-cause notice.

¶4Learned High Court Government Pleader submits that once the intimation was put out through the portal, petitioner was bound to make a note of it.

¶5Perused the order of adjudication at Annexure-D. The authority has proceeded on the premise of there being discrepancy between ITC claimed in GSTR-3B vis-à-vis declarations in GSTR-2A. The said aspect is essentially factual in nature and requires to be demonstrated by the petitioner. In light of the adjudication being completed without the benefit of exercise of attempted reconciliation by the petitioner, it would be appropriate to set aside the impugned order by putting the petitioner on terms.

¶6Taking note of the assertion of the petitioner that they would reconcile the alleged discrepancies in GSTR-3B vis-à-vis declarations in GSTR-2A, the order at

Annexure-D is set aside. Consequent to setting aside of the order of adjudication, the recovery proceedings pursuant to the impugned order are also required to be set aside.

¶7The petitioner to appear before respondent No.2 without further notice on 18.05.2026. The petitioner is put on terms and required to deposit 10% of the tax demand. Such deposit to be made before the date fixed. All contentions are kept open. Accordingly, petition is disposed of. SD/- (S SUNIL DUTT YADAV) JUDGE MCR