Sali Basavaraj Vs State of Karnataka (Telangana High Court)
Summary: The Karnataka High Court allowed the writ petition challenging the adjudication order dated 30.03.2026 passed under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017, where the same officer had also conducted the audit under Section 65. The petitioner had assailed the audit report dated 16.10.2025 and the adjudication order, contending that respondent No.5 had performed both functions. Reliance was placed on the co-ordinate Bench decisions in M/s Presidency Builders and Developers Vs. The Deputy Commissioner of Commercial Taxes and M/s. Rajapur Minerals Vs. The Deputy Commissioner of Commercial Taxes (Audit)-2. The Court noted that it was undisputed that respondent No.5 had conducted the audit and also the adjudication. Following M/s. Rajapur Minerals, the Court held that relief was required to be granted. It quashed the order dated 30.03.2026 and directed respondent No.4, the Joint Commissioner of Commercial Taxes (Admin), to assign the matter to a proper officer other than respondent No.5 for fresh adjudication under Section 73 of the KGST Act. The petitioner was directed to appear before respondent No.4 on 02.11.2026 at 3.00 p.m. without further notice.
Liberty was granted to file a further reply to the show-cause notice dated 27.01.2026 on or before that date. Reconsideration was directed from the stage of the petitioner’s reply to the show-cause notice, with adequate opportunity of hearing and further proceedings in accordance with law.
Cases Discussed
- M/s Presidency Builders and Developers Vs. The Deputy Commissioner of Commercial Taxes; W.P. No. 28539/2025; 10.11.2025; NC: 2025:KHC:46499
- M/s. Rajapur Minerals Vs. The Deputy Commissioner of Commercial Taxes (Audit)-2; W.P. No. 100290/2026; 25.02.2026; NC: 2026:KHC-D:2987
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
The present writ petition is filed seeking for the following reliefs:
a. Issue a writ in the nature of certiorari quashing impugned Audit Report issued in Form GST ADT-01 bearing No. DCCT/(A)2/DVG/T-2025-26 dated 16.10.2025 and the impugned intimation of tax ascertained in Form GST APL-01 bearing no. DCCT/(A)2/DVG/GST/ADJ/T-2025-26 dated 30.03.2026 issued by the Respondent No.5, vide Annexure-A and A1 respectively.
b. Issue such other writ, order or direction as this Hon’ble Court deems fit under the facts and circumstances of the case, in the interest of justice and equity.
2. In the present writ petition the petitioner has assailed the order dated 16.10.2025 (Annexure-A to the writ petition) passed in the course of an audit conducted under Section 65 of the Karnataka Goods and Services Tax Act, 20171 as well as the order dated 30.03.2026 passed under Section 73 (9) of the KGST Act (Annexure-A1 to the writ petition).
3. The Learned counsel for the petitioner contends that the audit which has culminated in the order dated 16.10.2025 was conducted by respondent No.5 and the Adjudication Order dated 30.03.2026 was also issued by respondent No.5.
4. Learned counsel for the petitioner submits that in a similar fact situation, Co-ordinate Benches of this Court in the case of M/s Presidency Builders and Developers Vs. The Deputy Commissioner of Commercial Taxes2, as well as in the case of M/s. Rajapur Minerals Vs. The Deputy Commissioner of Commercial Taxes (Audit)-23, have allowed the writ petitions and granted reliefs.
5. It is forthcoming that in the case of M/s. Rajapur Minerals3, a co-ordinate Bench of this Court, allowed the writ petition and ordered as under:
“ORDER
i. The writ petition is allowed.
ii. The impugned Order-in-Original dated No.1 20.03.2024 passed by respondent (Annexure-E series) is hereby set aside.
iii. Consequently, impugned garnishee notice dated 04.10.2025 (Annexure-K) and impugned Form DRC-09 dated 0312.2025 (Annexure-L) are also quashed.
iv. The impugned order in appeal dated 27.06.2025 (Annexure-J) is also set aside.
v. The matter is remitted to the Joint Commissioner of Commercial Tax (Administration)-respondent No.3, who shall assign the matter to the proper officer other than respondent No.1 for fresh adjudication under Section 73 of the KGST Act.
vi. The matter shall be reconsidered from the stage of the reply submitted by the petitioner to the show cause notice.
vii. Liberty is reserved to the petitioner to file additional reply, and written documents submission.
viii. The concerned officer shall afford reasonable opportunity of hearing and pass a reasoned order in accordance with law.
ix. The petitioner shall appear before respondent No.3 on 10.03.2026 without waiting for any further notice. Failure to appear on the said date, shall result in automatic recall of this order.
6. It is not in dispute that the audit has been conducted by respondent No.5 and the adjudication has also been conducted by respondent No.5. In view of the said admitted position the relief sought for in the present writ petition is to be granted in terms of the judgment of the Co-ordinate Bench of this Court in the case of M/s.Rajapur Minerals3.
7. Hence, the following:
ORDER
(i) The order dated 30.03.2026 passed by the respondent No.5 (Annexure-A1 to the writ petition) is hereby quashed;
(ii) Respondent No.4-Joint Commissioner of Commercial Taxes (Admin) shall assign the matter to a proper officer other than respondent No.5 for fresh adjudication of the matter under Section 73 of the KGST Act.
(iii) For the said purpose, the petitioner shall appear before the respondent No.4 on 02.11.2026 at 03.00 p.m., without any further notice in this regard.
(iv) Liberty is reserved to the petitioner to file further reply to the show-cause notice dated 27.01.2026 issued under Section 73(1) of the KGST Act on or before the date of appearance before the respondent No.4 .
(v) The matter shall be reconsidered from the stage of the reply submitted by the petitioner to the show-cause notice dated 27.01.2026.
(vi) The concerned officer shall afford adequate opportunity of hearing to the petitioner and conduct further proceedings in accordance with law.
Notes:
1 Hereinafter referred to as ‘KGST’ Act
2 W.P.No.28539/2025, dated 10.11.2025, NC: 2025:KHC:46499
3 W.P.No.100290/2026, dated 25.02.2026, NC: 2026:KHC-D:2987
