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.
