Sameer P. Shiraguppi Vs Deputy Commissioner of Commercial Taxes (AUDIT) (Karnataka High Court)
The Karnataka High Court allowed the writ petition challenging GST audit and assessment proceedings initiated against the petitioner for the tax period 2021-2022. The petitioner sought quashing of the audit report in Form ADT-02 dated 31.07.2025, pre-intimation notice in Form GST DRC-01A dated 22.08.2025, show cause notice dated 02.09.2025 issued under Section 73(1) of the CGST/KGST Act, and the order-in-original dated 28.10.2025 along with demand summary in Form GST DRC-07.
The Court examined the authority under which the proceedings had been initiated. It noted that the Commissioner of Commercial Taxes had passed an order dated 30.01.2023 empowering the Joint Commissioner of Commercial Taxes to assign proceedings under Sections 73 and 74 of the GST Act for financial years 2017-2018 and 2018-2019. Based on that order, the Joint Commissioner subsequently assigned proceedings relating to tax period 2021-2022.
The Court held that such assignment was untenable. It observed that the Joint Commissioner derived authority only from the order dated 30.01.2023, which was valid only up to 31.12.2023. Therefore, when proceedings for tax period 2021-2022 were initiated, the Joint Commissioner no longer possessed authority to make such assignment. Consequently, the Court held that the proceedings initiated pursuant to such assignment were non-est and without jurisdiction.
