M/S Vijayalakshmi Marketing Vs the Assistant… — GST and Indirect Tax | Karnataka HC (2026)

M/S Vijayalakshmi Marketing Vs the Assistant… — GST and Indirect Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Petition allowed; Adjudication Order dated 10.12.2025 (Annexure-F) and Rectification Order dated 17.03.2026 (Annexure-G1) quashed, with liberty to the respondent to file reply to the Show Cause Notice dated 16.09.2025 within four weeks from the date of receipt of a copy of the order.

Issue for consideration

Whether the Adjudication Order dated 10.12.2025 and the Rectification Order dated 17.03.2026 should be quashed on the ground that the petitioner, who has a cardiac condition and was hospitalized in October 2025, could not respond to the Show Cause Notice dated 16.09.2025.

Court's answer

The Court opined that the petitioner is bona fide in offering the reasons (hospitalization in October 2025 preventing reply to the Show Cause Notice dated 16.09.2025), and that interference was therefore warranted quashing both the Adjudication Order and the proceedings refusing rectification, with liberty to the respondent to show cause to the Notice dated 16.09.2025.

Ratio / Principle

The petition was allowed: the Adjudication Order dated 10.12.2025 (Annexure-F) and the Rectification Order dated 17.03.2026 (Annexure-G1) were quashed, with liberty to the respondent to file a reply within four weeks from receipt of a copy of the order.

Detailed headnote1 paragraphs

High Court of Karnataka (B M Shyam Prasad, J.) allowed a writ petition under Articles 226 and 227 of the Constitution of India and quashed an Adjudication Order dated 10.12.2025 passed under Section 73(9) of the CGST/KGST Act (Annexure-F) and the Rectification Order dated 17.03.2026 (Annexure-G1) rejecting the rectification application. The petitioner, a partnership concern, had not replied to a Show Cause Notice in Form DRC-01 dated 16.09.2025 (Annexure-D) issued pursuant to audit under Section 65 of the CGST/KGST Act because its partner, who has a cardiac condition and had been frequently hospitalized, was hospitalized in October 2025. Holding that the petitioner was bona fide in offering these reasons, the Court quashed both orders with liberty to the respondent to file a reply within four weeks from receipt of a copy of the order.

1 - NC: 2026:KHC:28126 WP No. 13957 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 9^TH DAY OF JUNE, 2026

BEFORE

THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 13957 OF 2026 (T-RES)

BETWEEN:

M/S VIJAYALAKSHMI MARKETING (A PARTNERSHIP CONCERN WITH GSTIN, 29AAEFV2801N1ZV) NO. 2,3,4, 1^ST CROSS, KALASIPALAYAM NEW EXTENSION, BENGALURU 560 002. (REP. BY ITS PARTNER NATARAJAN RAJANBABU, S/O. NATARAJAN, AGED ABOUT 53 YEARS)

…PETITIONER

(BY SRI. PRAKASH D.,ADVOCATE)

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

AND:

THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES., COMMERCIAL TAXES, (AUDIT)-3.5, DGSTO-3, TTMC BUILDING, 2^ND FLOOR, B BLOCK, SHANTHI NAGAR, BANGALORE 562 027.

…RESPONDENT (BY SRI. K. HEMAKUMAR, AGA)

2 - NC: 2026:KHC:28126 WP No. 13957 of 2026

HC-KAR

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ADJUDICATION ORDER PASSED UNDER SECTION 73(9) OF THE CGST/KGST ACT DATED 10.12.2025 AT ANNEXURE -F; B. QUASH THE IMPUGNED RECTIFICATION ORDER BEARING NO. ACCT(A)3.5/ADJ/RECT/2026-27 DATED 17.03.2026 PRODUCED AT ANNEXURE-G1; DECLARE THAT THE IMPUGNED PROCEEDINGS INITIATED PURSUANT TO AUDIT UNDER SECTION 65 OF THE CGST/KGST ACT, INCLUDING THE SHOW CAUSE NOTICE IN FORM DRC -01 DATED 16.09.2025 AT ANNEXURE-D AS WITHOUT JURISDICTION AND LIABLE TO BE SET ASIDED.

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

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner has called in question the Adjudication Order under Section 73(9) of the Karnataka Goods and Services Tax Act/Central Goods and Services Tax Act, 2017 [for short, ‘ the Act’ ] and the rejection of the application for rectification vide proceedings dated 17.03.2026 [ Annexure-G1 ].

3 - NC: 2026:KHC:28126 WP No. 13957 of 2026

HC-KAR

The petitioner seeks this Court's

intervention on the short ground viz ., that the petitioner, who has a cardiac condition and who has been frequently hospitalized even prior to the Show Cause Notice dated 16.09.2025, was hospitalized in October, 2025 and therefore he could not respond to the Show Cause Notice resulting in the impugned order dated 10.12.2025 [ Annexure-F ].

Sri D. Prakash, the learned counsel for the

petitioner, and Sri K. Hema Kumar, the learned Additional Government Advocate for the respondent, are heard. On perusal of the records, this Court must observe that the petitioner is discharged in October 2025 after another instance of hospitalization and the doctors have referred to his condition as critical condition and earlier attempts were not completely to the petitioner's benefit.

4 -

NC: 2026:KHC:28126 WP No. 13957 of 2026

HC-KAR

This Court is persuaded to opine that the

petitioner is bona fide in offering the reasons and therefore there must be interference quashing both the Adjudication Order and the proceedings refusing rectification with liberty to the respondent to show cause to the Notice dated 16.09.2025. Hence, the following:

ORDER

The petition is allowed quashing the Adjudication Order dated 10.12.2025 [ Annexure-F ] and the Rectification Order dated 17.03.2026 [ Anexure-G1 ] with liberty to the respondent to file reply within four [4] weeks from the date of receipt of a copy of this order.

Sd/(B M SHYAM PRASAD) JUDGE

SA Ct:sr