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M/S N Srinivas Raju v. Joint Commissioner of Commercial Taxes (Admn)

Taxation – Karnataka – parallel/dual proceedings barred

Karnataka HC12 Nov 2025WP/3394/2025

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Case brief

AI extract

What is this about?

KGST Act Section 73(5), Section 73(1), Section 73; parallel proceedings; simultaneous proceedings; dual proceedings; same subject matter; second adjudication barred; excess input tax credit Rs. 30,31,472/-; tax period 2019-20; Deputy Commissioner of Commercial Taxes (Audit)-3.9 versus Assistant Commissioner of Commercial Taxes (Audit)-3.6; adjudication order dated 31.08.2024 quashed; certiorari; Articles 226 & 227; writ petition (T-RES); WP No. 3394 of 2025; High Court of Karnataka at Bengaluru; decided 12-11-2025; Justice S.R. Krishna Kumar.

What did the court decide?

Writ petition allowed; the impugned order dated 31.08.2024 passed by respondent No.3 at Annexure-A quashed. ¶¶49

M/S N Srinivas Raju Vs Joint Commissioner of… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Writ petition allowed; the impugned order dated 31.08.2024 passed by respondent No.3 at Annexure-A quashed.

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Issue for consideration

Whether the adjudication order dated 31.08.2024 passed by respondent No.3 (Assistant Commissioner) in respect of the very same subject matter on which respondent No.2 (Deputy Commissioner) had already concluded adjudication on 29.08.2024 in the petitioner's favour constitutes impermissible parallel/simultaneous/dual proceedings, rendering the impugned order vitiated, non-est and bad in law and liable to be quashed.

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Court's answer

Respondent No.2 (Deputy Commissioner) having already initiated proceedings under Section 73 of the KGST Act which culminated in the order dated 29.08.2024 passed in favour of the petitioner, respondent No.3 (Assistant Commissioner) initiated parallel/simultaneous/dual proceedings against the petitioner in respect of the very same subject matter already covered by the Deputy Commissioner's order (Annexure-B dated 29.08.2024).

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Ratio / Principle

The impugned order at Annexure-A passed by the Assistant Commissioner is illegal, arbitrary and without jurisdiction or authority of law, warranting interference by the Court.

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Detailed headnote1 paragraphs

Taxation — Karnataka — parallel/dual proceedings barred — Where, upon intimation of tax ascertained dated 18/11/2023 (Annexure-C) under Section 73(5) of the KGST Act in respect of excess input tax credit of Rs. 30,31,472/- for tax period 2019-20, the Deputy Commissioner of Commercial Taxes (respondent No.2) issued show cause notice dated 31.05.2024 and passed adjudication order dated 29.08.2024 in favour of the assessee (Annexure-B), the Assistant Commissioner of Commercial Taxes (Audit)-3.6 (respondent No.3) could not initiate fresh proceedings on the very same subject matter culminating in adjudication order dated 31.08.2024 (Annexure-A); such parallel/simultaneous/dual proceedings held illegal, arbitrary and without jurisdiction or authority of law — writ petition under Articles 226 & 227 of the Constitution of India allowed and Annexure-A quashed (Paras 3–6).

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NC: 2025:KHC:47141 WP No. 3394 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF NOVEMBER, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 3394 OF 2025 (T-RES)

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BETWEEN:

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M/S N. SRINIVAS RAJU PRINCIPAL PLACE OF BUSINESS AT NO. 1575, 11^TH MAIN, 4^TH T BLOCK, JAYANAGARA, BENGALURU – 560 040., REPRESENTED BY ITS SOLE PROPRIETOR, N. SRINIVASA RAJU, S/O LATE NARAYANA RAJU, AGED ABOUT 58 YEARS, R/O BENGALURU

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…PETITIONER

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(BY SRI. OMKAR KAMBI, ADVOCATE FOR SRI. SURAJ NAIK, ADVOCATE)

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AND:

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Digitally signed by CHANDANA B M Location: High Court of Karnataka

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JOINT COMMISSIONER OF COMMERCIAL TAXES (ADMN) DGSTO-3, TTMC B BLOCK, BMTC BUILDING 2^ND FLOOR, SHANTHINAGAR, BANGALORE – 560 027

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DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3.9, GSTO-3 OFFICE OF THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT-3.9) DGSTO-3, 2^ND FLOOR, BMTC BUS STAND, TTMC, DOUBLE ROAD, SHANTHINAGAR, BENGALURU – 560 027

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3.6 OFFICE OF THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) -3.6, DGSTO-3, 2^ND FLOOR, BMTC BUS STAND, TTMC, DOUBLE ROAD, SHANTHINAGAR, BENGALURU – 560 027

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NC: 2025:KHC:47141 WP No. 3394 of 2025

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HC-KAR

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ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT-16) SOUTH ZONE, B BLOCK, VTK – 2, ROOM NO.406, 4^TH FLOOR, KORMANGALA, BANGALORE – 560 047

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…RESPONDENTS

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(BY SMT. JYOTI M. MARADI, HCGP)

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THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION, DECLARING THAT IN VIEW OF THE INITIATION OF PROCEEDINGS UNDER SECTION 73(5) OF THE KGST ACT BY COMMUNICATION OF INTIMATION OF TAX ASCERTAINED ON 18/11/2023 VIDE ANNEXURE-C IN RESPECT OF THE CLAIM FOR EXCESS INPUT TAX CREDIT OF AN AMOUNT OF RS. 30,31,472/- FOR THE TAX PERIOD 2019-20 AND PASSING OF THE ORDER OF ADJUDICATION THEREON DATED 29/08/2024 VIDE ANNEXURE-B BY THE RESPONDENT NO. 2, THE SUBSEQUENT ISSUANCE OF INTIMATION OF TAX ASCERTAINED VIDE COMMUNICATION DATED 01/03/2024 VIDE ANNEXURE-F BEARING NO. BY THE RESPONDENT NO. 4 AND ALL FURTHER ACTIONS BY THE RESPONDENT NO. 3 IN RESPECT OF THE SAME SUBJECT MATTER AS VITIATED, NONEST AND BAD IN LAW 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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ORAL ORDER

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In this petition, petitioner seeks for the following reliefs:-

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“a. Issue a Writ, Order or Direction, declaring that in view of the initiation of proceedings under section 73(5) of the KGST Act by communication of intimation of tax ascertained on 18/11/2023 vide Annexure C in respect of the claim for excess Input Tax Credit of an

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NC: 2025:KHC:47141 WP No. 3394 of 2025

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HC-KAR

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amount of Rs. 30,31,472/- for the tax Period 2019-20 and passing of the order of adjudication thereon dated 29/08/2024 vide Annexure B by the Respondent No. 2, the subsequent issuance of intimation of tax ascertained vide communication dated 01/03/2024 vide Annexure F Bearing No. by the Respondent No. 4 and all further actions by the Respondent No. 3 in respect of the same subject matter as vitiated, non-est and bad in law.

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b. Issue a Writ in the nature of 'certiorari', or any other appropriate writ, order or direction, quashing the impugned Order dated 31.08.2024 passed by the Respondent No. 3 bearing No. No. ACCT (AUDIT)3.6/DGSTO.3/GST2019-20/ORDER-U/s73/2024-25 'vide Annexure A' as arbitrary, unjustifiable, illegal and opposed to the principles of natural justice.

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c. Grant such other relief that this Hon'ble Court may deem fit in the facts and circumstances of the matter in the interest of justice.”

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Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

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A perusal of the material on record will indicate that on 31.05.2024, the 2^nd respondent - Deputy Commissioner of Commercial Taxes issued a Show Cause Notice to the petitioner

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4 - NC: 2025:KHC:47141 WP No. 3394 of 2025

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HC-KAR

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who submitted a reply and contested the proceedings initiated under Section 73(1) of the KGST Act. The said proceedings culminated in adjudication order dated 29.08.2024, which was in favour of the petitioner. However despite the aforesaid proceedings already initiated by the Deputy Commissioner against the petitioner and culminating in favour of the petitioner, the respondent No.3/ Assistant Commissioner also purports to initiate parallel/simultaneous/dual proceedings in relation to the very same subject matter against the petitioner culminating in the impugned adjudication order at Annexure-A dated 31.08.2024, which is assailed in the present petition.

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Per contra, learned HCGP for the respondents submits

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that there is no merit in the petition and the same deserves to be set aside.

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The aforesaid facts and circumstances clearly indicate that the respondent No.2 Deputy Commissioner having already initiated proceedings against the petitioner under Section 73 of the KGST Act culminating in the order dated 29.08.2024 passed by the Deputy Commissioner in favour of the petitioner, respondent No.3 – Assistant Commissioner have initiated parallel/simultaneous/dual

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NC: 2025:KHC:47141 WP No. 3394 of 2025

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HC-KAR

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proceedings against the petitioner in respect of the very same subject matter which was already covered by the order of the Deputy Commissioner at Annexure -B dated 29.08.2024. It is therefore clear that the impugned order at Annexure-A passed by

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the Assistant Commissioner is illegal, arbitrary and without jurisdiction or authority of law and contrary to the aforesaid provisions of law, warranting interference by this Court.

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