Sri. Shashi Kumar S Vs the State of Karnataka — GST and Indirect Tax | Karnataka HC (2025)

Sri. Shashi Kumar S Vs the State of Karnataka — GST and Indirect Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Liberty reserved to the petitioners to submit a representation with relevant documents to the respondents within four weeks; respondents directed to consider the representation and pass an appropriate order / take appropriate decision in accordance with law, bearing in mind this Court's judgment dated 11.04.2023 in Sri Chandrashekariah and others Vs. State of Karnataka, WP No.9721/2019 and connected matters. Neither substantive prayer (non-applicability of GST Act to pre-01.07.2017 works contracts; refund directions against Respondents 8 to 11) was adjudicated.

Issue for consideration

Whether the provisions of the GST Act are inapplicable to works contracts in respect of which provision of services was made prior to 01.07.2017, and whether Respondents 4 to 7 consequently have no jurisdiction to issue notice or take coercive steps against the petitioners under the GST Act. +1 more

Ratio / Principle

The petition stands disposed of reserving liberty in favour of the petitioner to submit a representation to the respondents within a period of four weeks from the date of the order.

Key takeaways

If the representation along with relevant documents is submitted, the respondent shall consider the same and proceed further and pass an appropriate order / take appropriate decision.ratio¶56
Such consideration and any resulting order/decision shall be in accordance with law, bearing in mind the judgment dated 11.04.2023 of this Court in Sri Chandrashekariah and others Vs. The State of Karnataka and others in WP No.9721/2019 and connected matters.ratio¶59

Detailed headnote1 paragraphs

Three works-contractor petitioners sought declarations (Article 226) that the GST Act is inapplicable to works contracts where provision of services was made prior to 01.07.2017, that Respondents 4 to 7 (Principal Commissioner of Central Tax / Commercial Taxes officers) lack jurisdiction to issue notice or take coercive steps under the GST Act dated 01.07.2017, and that the State should direct the employing departments (Respondents 8 to 11, including MCC, Panchayatraj Engineering Division, Cauvery Neeravari Nigam Ltd and PWP & IWTD Division) to pay/refund GST already paid by some petitioners without collection. Without deciding the merits, the Single Judge (S.R. Krishna Kumar, J., order dated 10.12.2025) disposed of the petition on the submission of counsel, reserving liberty to file a representation within four weeks, to be considered in accordance with law bearing in mind the Karnataka High Court judgment dated 11.04.2023 in Sri Chandrashekariah v. State of Karnataka, WP No.9721/2019 and connected matters.

1 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 10^TH DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO. 21737 OF 2023 (T-RES)

BETWEEN:

SRI. SHASHI KUMAR S S/O SRINIVASA S AGED ABOUT 35 YEARS KURUBARAHALLI D MALLANAYAKANAHALLI KOLAR

KARNATAKA - 563 136

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

SRI VINAY CHAND N S/O NAGARAJU B AGED ABOUT 35 YEARS NO 989, 14^TH MAIN 9^TH CROSS, T K LAYOUT VTC MYSORE DISTRICT KARNATAKA - 570 009

SRI B NAGARAJU AGED ABOUT 36 YEARS S/O BOREGOWDA NO 898, 14TH MAIN ROAD 9TH CROSS, T K LAYOUT MYSORE DISTRICT KARNATAKA - 570 009

…PETITIONERS

(BY SRI. DILLI RAJAN, ADVOCATE)

2 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

AND:

THE STATE OF KARNATAKA FINANCE DEPARTMENT II FLOOR, VIDHANA SOUDHA BENGALURU - 560 001

(REP BY ADDL CHIEF SECRETARY)

THE UNION OF INDIA MINISTRY OF FINANCE NEW DELHI 110 001 (REP BY ITS SECRETARY)

THE GOODS AND SERVICES TAX COUNCIL JANAPATH CONNAUGHT PLACE NEW DELHI 110001

(REP BY SPECIAL SECRETARY)

THE PRINCIPAL COMMISSIONER OF CENTRAL TAX NO 1, QUEENS ROAD VASANTHI NAGAR BENGALURU - 560 001

THE COMMISSIONER OF COMMERCIAL TAXES GOVERNMENT OF KARNATAKA VANIJYA THERIGE KARYALAYA 1^ST MAIN ROAD, GANDHINAGAR BENGALURU - 560 009

COMMERCIAL TAX OFFICER ENFORCEMENT-5 MYSORE ZONE MYSORE - 570 001

3 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES

DGSTO MYS, SESHADRI BHAVAN DIWAN ROAD

MYSORE - 570 024

THE EXECUTIVE ENGINEER MYSORE CITY CORPORATION MYSORE - 570 001

THE EXECUTIVE ENGINEER PANCHAYATHRAJ ENGINEERING DIVISION APOLLO HOSPITAL ROAD KUVEMPU NAGAR

MYSORE - 570 001

THE EXECUTIVE ENGINEER CAUVERY NEERAVARI NIGAM LTD NO.2, VARUNA CANAL DIVISION MYSORE - 570 002

THE EXECUTIVE ENGINEER PWP AND IWTD DIVISION

KOLAR - 561 211

…RESPONDENTS

(BY SRI. K. HEMA KUMAR, AGA FOR R1, R5 TO R7 AND R9 SRI. ARVIND V. CHAVAN, ADVOCATE FOR R2 TO R4 SRI. B.R. PRASHANTH, ADVOCATE FOR R8)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO A) DECLARE THAT THE PROVISIONS OF GST ACT IS INAPPLICABLE IN RESPECT OF WORKS CONTRACT WHERE PROVISIONS OF SERVICE ARE MADE PRIOR TO 01/07/2017 IN SO FAR AS PETITIONERS ARE CONCERNED AND CONSEQUENTLY THAT THE R4 TO R7 HAVE

4 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

NO JURISDICTION TO EITHER ISSUE NOTICE OR TO TAKE ANY COERCIVE STEPS AGAINST THE PETITIONERS UNDER THE PROVISIONS OF THE GST ACT DATED 01.07.2017 PRODUCED AS ANNEXURE-H AND H1 ETC.

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

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

ORAL ORDER

In this petition, the petitioner seeks the following reliefs;

"(a) Declare that the provisions of GST Act is inapplicable in respect of works contract where provisions of service are made prior to 01.07.2017 in so far as petitioners are concerned and consequently that the respondent Nos 4 to 7 have no jurisdiction to either issue notice or to take any coercive steps against the Petitioners under the provisions of the GST Act dated 1.07.20/7produced as Annexure-H.CH

(b) Declare that, GST being an Indirect tax is based on the concept of collect and pay, and the liability to pay is on the taxable person after collecting it from recipient of goods or services i.e from the employer of works contract (Respondent No. 8 to 11); AND hence direct Respondent | being the State Government to direct the Respondents 8 to 11 to pay/refund the tax amounts to some of the Petitioners who have already paid GST without collecting it from the Respondents 8 to 11;

(c) Pass such other orders as may be deemed appropriate under the circumstances of the case, in the ends of justice."

5 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

After arguing the matter for some time, learned counsel for the petitioner submits that the petition may be disposed of reserving liberty in favour of the petitioner to submit a representation to the respondents who may be directed to consider the same and proceed in further bearing in mind the judgment of this Court dated 11.04.2023 passed in the case of Sri Chandrashekariah and others Vs. The State of Karnataka and others in WP No.9721/2019 and connected matters within the stipulated time frame.

Submission is placed on record.

The petition stands disposed of reserving liberty in favour of the petitioner to submit the representation to the respondent within a period of four weeks from today.

If such a representation along with the relevant documents are submitted by the petitioner, the respondent shall consider the same and proceed further and pass an appropriate order / take appropriate decision

6 - NC: 2025:KHC:52397 WP No. 21737 of 2023

HC-KAR

in accordance with law, bearing in mind the judgment dated 11.04.2023 passed in the case of Sri Chandrashekariah and others Vs. The State of Karnataka and others in WP No.9721/2019 and connected matters.

Subject to aforesaid directions, the petition stands

disposed of.

Sd/(S.R.KRISHNA KUMAR) JUDGE

GH List No.: 2 Sl No.: 28