BKR Services Private Limited Vs State of Karnataka (Karnataka High Court)
Summary: The Karnataka High Court considered the grievances of BKR Services Private Limited and the second and third petitioners concerning GST recovery notices, adjudication orders and summaries issued under the CGST/KGST Act, 2017. The first petitioner, a Private Limited Company, challenged Recovery Notices in Form GST DRC-13 issued for recovery of amounts arising from Adjudication Orders under Section 73, contending that it was distinct from Swamy Security Agencies, a proprietary concern of deceased Mr. Rudraswamy B K, who died on 25.05.2023. The second and third petitioners, who are the son and wife of the deceased, challenged the Adjudication Orders and corresponding summaries in Form GST DRC-07 and relied upon Section 93 of the CGST/KGST Act. The Court noted that the first petitioner was undisputedly different and distinct from the proprietary concern constituted by the deceased and held that the Recovery Notices in Form GST DRC-13 could not have been issued against the first petitioner. Accordingly, the Recovery Notices dated 04.07.2026 at Annexures K and K1 were quashed. As regards the second and third petitioners, the Court observed that the Adjudication Orders did not examine whether the proceedings could be sustained under Section 93(1)(a) or Section 93(1)(b) of the CGST/KGST Act. The Court also left open the contention concerning two separate Show Cause Notices for the same tax period, April 2021 to March 2022, on different issues, granting the petitioners an opportunity to file a detailed response. The Adjudication Orders dated 22.12.2015 and the corresponding summaries at Annexures G, G1, H and H1 were quashed and the proceedings were restored with liberty to the second and third petitioners to file replies to the corresponding Show Cause Notices, leaving all grounds open for consideration based on those responses. The petitioners were directed to file their responses with the third respondent, along with a certified copy of the Order, by 14.08.2026.
