Sri Krishnananda Panemangalore Pai, Vs the Assistant Commissioner

SRI KRISHNANANDA PANEMANGALORE PAI, AGED ABOUT 41 YEARS PROPRIETOR OF M/S. SRI LAXMI BOARDS, 255 2A BEDRALA, NARIMOGRU VILLAGE, PUTTUR, D.K. – 574 312.

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…PETITIONER

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(BY SRI. SYED JAFFER MOHIYUDDIN, ADVOCATE)

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AND:

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THE ASSISTANT COMMISSIONER COMMERCIAL TAX, LGSTO-265, DARBE PUTTUR KARNATAKA.

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…RESPONDENT

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(BY SMT. JYOTI M. MARADI, HCGP)

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Digitally signed by MADHURI S Location: High Court of Karnataka

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THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO UNDER SECTION 74 READ WITH SECTION 50, 74(9) OF THE KGST ACT/CGST ACT, 2017 AND SECTION 20 OF THE IGST ACT, 2017 BEARING NO.ACCT/LGSTO-265/PTR/DRC07/10/2025-26 DATED 30.07.2025 ANNX-A AND ETC.

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THIS PETITION, COMING ON FOR ORDERS , THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

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NC: 2025:KHC:47744 WP No. 34532 of 2025

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HC-KAR

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ORAL ORDER

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In this petition, petitioner seeks the following reliefs:

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“ ( 1) Under Section 74 read with Section 50, 74(9) of the KGST Act / CGST Act, 2017 and Section 20 of the IGST Act, 2017 bearing No.ACCT/LGSTO-265/PTR/DRC07/10/2025-26 dated 30.07.2025 at Annexure-А.

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(2) Under Section 74 read with Section 50, 74(9) of the KGST Act/CGST Act, 2017 and Section 20 of the IGST Act, 2017 bearing No. ACCT/LGSTO-265/PTR/DRC07/11/2025-26 dated 30.07.2025 at Annexure-В.

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(3) Under Section 74 read with Section 50, 74(9) of the KGST Act/CGST Act, 2017 and Section 20 of the IGST Act, 2017 bearing No.ACCT/LGSTO-265/PTR/DRC-07/12/202526 dated 30.07.2025 at Annexure-C and direct respondent to allow the petitioner to claim input tax credit from M/s National Industries GSTN No. 29 AULPP 5953C 128 for all three invoices dated 30.07.2025.

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(4) and to pass any other orders that this Hon’ble Court deems fit in the present facts and circumstances of this case in the interest of justice.”

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2. Heard learned counsel for the petitioner and learned

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HCGP for the respondent and perused the material on record.

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A perusal of the material on record will indicate that pursuant to the Show Cause Notices all three dated 22.05.2025

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HC-KAR

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issued by the respondent to the petitioner under Section 74 of the KGST Act for the tax periods 2022-23, 2023-24 and 2024-25, the petitioner submitted replies and proceedings culminated in the impugned orders at Annexures – A, B and C all dated 30.07.2025 confirming the demand made in the Show Cause Notices. Subsequently, since the petitioner did not comply with the demand, the respondents have proceeded to recover a sum of Rs.6 lakhs from the account of the petitioner by attaching the same.

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Learned counsel for the petitioner submits that petition

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may be disposed of by reserving liberty in favour of the petitioner to prefer an appeal before the Appellate Authority within the stipulated time frame and by treating the amount already recovered as predeposit for the purpose of filing an appeal before the Appellate Authority and by excluding the period spent before this Court under Section 14 of the Limitation Act.

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The said submission is placed on record.

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In view of the aforesaid facts and circumstances and

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the submissions made on behalf of the petitioner, I deem it just and appropriate to dispose of this petition by reserving liberty in favour

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HC-KAR

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of the petitioner to file an appeal before the Appellate Authority. If such an appeal is filed by the petitioner within a period of four weeks from the date of receipt of a copy of this order, the Appellate Authority shall treat the amount already recovered from the petitioner by the respondent as pre-deposit for the purpose of the appeal and the Appellate Authority is directed to dispose of the appeal on merits without insisting on further pre-deposit. In addition thereto, if petitioner files such an appeal before the Appellate Authority within a period of four weeks from the date of receipt of a copy of this order, the petitioner shall have the benefit of exclusion of time under Section 14 of the Limitation Act.

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Since the respondents have already recovered a sum

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of Rs.6 lakhs, which is in excess of 10% pre-deposit for the purpose of filing an appeal before the Appellate Authority, the respondents shall defreeze the account of the petitioner and refund the entire amount in excess of 10% of the total demand raised immediately upon receipt of a copy of this order. The amount already recovered by the respondent would be subject to the final out come of the appeal before the Appellate Authority. The

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