M R K Enterprises Vs Commissioner of Commercial Taxes (Karnataka High Court)
The Karnataka High Court considered a writ petition challenging an assessment order passed under Section 64 of the Karnataka Goods and Services Tax Act, 2017, as well as an order cancelling the petitioner’s GST registration.
The petitioner contended that the Authority had erred in passing the summary assessment order by concluding that there were discrepancies relating to Input Tax Credit (ITC). The petitioner submitted additional documents through a memo dated 01.04.2026, including e-way bill numbers, dates of supply, trader names, values, and vehicle numbers, along with ledger extracts of M/s. M.R.K. Enterprises for the relevant period. According to the petitioner, these documents would explain the alleged discrepancies if the matter was reconsidered.
The petitioner also challenged the cancellation of registration dated 19.02.2026. The cancellation had been made on the ground that the business premises were found non-existent at the declared place of business. The petitioner argued that the cancellation was connected with the correctness of the assessment order and that restoration of registration should follow if the assessment order was set aside.
The Court examined the assessment order and noted that the Authority had conducted an inspection after receiving inputs from various Enforcement Wings. During inspection, the registered premises were found locked. Neighbouring residents and shop owners reportedly stated that the petitioner visited the premises only once in 10 to 15 days and that no business activities were being conducted there. Based on inspection and available material, the Authority concluded that the petitioner had availed ITC not corresponding to actual supplies and had wrongly claimed ineligible ITC.
