G.S. And Company Vs State of Karnataka (Karnataka High Court)
The Karnataka High Court allowed an application filed by the petitioner seeking amendment of the writ petition to challenge the adjudication order at Annexure-D and raise additional grounds, directing that the amended petition be filed. The petitioner contended that the impugned adjudication order was passed ex parte and that taxes had already been recovered pursuant to it. It was submitted that due to a bona fide lapse, no reply had been filed to the show-cause notice, and the petitioner sought an opportunity to respond, requesting that the order be set aside and the matter remitted for reconsideration.
Upon perusal, the Court noted that the adjudicating authority had concluded that Input Tax Credit (ITC) was wrongly availed and observed that although sale invoices were issued, there was no actual supply of goods. However, the Court observed that the order was passed ex parte. Considering the petitioner’s submission that a reply would be filed to address the allegations, the Court found it appropriate to set aside the adjudication order and remit the matter for fresh consideration, leaving all contentions open.
The Court also recorded that tax had already been recovered, clarifying that such recovery would remain subject to the outcome of the fresh proceedings. Consequently, the adjudication order at Annexure-D was set aside, and the petitioner was directed to appear before the adjudicating authority on 13.05.2026 without further notice and to submit a reply to the show-cause notice. Additionally, the attachment of bank accounts undertaken for recovery was set aside. The petition was accordingly disposed of.
