M/S Edge Clothing Vs the Superintendent of Central Tax — GST and Indirect Tax | Karnataka HC (2026)

M/S Edge Clothing Vs the Superintendent of Central Tax — GST and Indirect Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Order in original at Annexure-A set aside; matter remitted to the stage of reply to the show cause notice dated 07.09.2024; petitioner directed to appear before the respondent on 23.02.2026 without further notice; copy of the show cause notice to be furnished to the petitioner forthwith; all contentions kept open.

Issue for consideration

Whether the impugned order in original dated 30/10/2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017 for tax periods 01.04.2018 to 31.03.2019 — admittedly ex parte, and founded on a show cause notice allegedly unserved after suo motu cancellation of registration and closure of the principal place of business — is liable to be quashed.

Court's answer

Since the order in original was admittedly ex parte, the registration stood cancelled suo motu with effect from 07.08.2019, and the show cause notice issued in the year 2024 would not have been served in light of the petitioner's assertion that the principal place of business was closed, a case is made out for interference.

Ratio / Principle

The order at Annexure-A is set aside and the matter is remitted to the stage of reply to the show cause notice dated 07.09.2024; the petitioner is to appear before the respondent on 23.02.2026 without further notice, is to be furnished a copy of the show cause notice forthwith, and all contentions are kept open.

Key takeaways

The writ petition is disposed of.ratio¶34

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav, J.), writ petition under Article 226 of the Constitution of India by M/s Edge Clothing (sole proprietorship of Mr. Arjun Bhandari) against an ex parte order in original dated 30/10/2025 (No. 36/GST/2025-26/ADS-1/SUPDT) passed by the Superintendent of Central Tax, ASD-1 Range, Bengaluru South Commissionerate under Section 74 of the Central Goods and Services Tax Act, 2017 for tax periods 01.04.2018 to 31.03.2019. The show cause notice dated 07.09.2024, issued in 2024, had been sent to the registered principal place of business although the petitioner's registration stood cancelled suo motu with effect from 07.08.2019 and the premises were closed, so the notice was unlikely to have been served. Taking this view, the Court set aside the order (Annexure-A), remitted the matter to the stage of reply to the show cause notice, directed the petitioner to appear before the respondent on 23.02.2026 without further notice, ordered furnishing of the show cause notice copy forthwith, kept all contentions open, and disposed of the writ petition.

1 - NC: 2026:KHC:6108 WP No. 2979 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 3^RD DAY OF FEBRUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 2979 OF 2026 (T-RES)

BETWEEN:

M/S EDGE CLOTHING A SOLE PROPRIETARY CONCERN REPRESENTED HEREIN BY ITS SOLE PROPRIETOR MR. ARJUN BHANDARI AGED ABOUT 33 YEARS SON OF MR. LAKSHMIKANTH BHANDARI NO. 511-6A, EMBASSY WOODS CUNNINGHAM ROAD, VASANTHANAGAR BANGALORE - 560 027. …PETITIONER

(BY SRI. SANDEEP HUILGOL., ADVOCATE)

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

AND:

THE SUPERINTENDENT OF CENTRAL TAX ASD-1 RANGE, DIVISION-1 BENGALURU SOUTH COMMISSIONERATE 1 1ST FLOOR, BMTC BUILDING KANAKPURA ROAD, BANASHANKARI BANGALORE - 560 070. (BY SRI. ARAVIND CHAVAN., ADVOCATE)

…RESPONDENT

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER IN ORIGINAL DATED 30/10/2025 BEARING NO. 36/ GST/2025-26/ADS-1/SUPDT, FILE NO. GEXCOM/SCN/GST/

2 - NC: 2026:KHC:6108 WP No. 2979 of 2026

HC-KAR

11379/2024-CGST-RANGE-ASD1-DIV-SD-1-COMMRTEBENGALURU (S) DIN:20251054YU000081388D PASSED BY THE RESPONDENT UNDER SECTION 74 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 FOR THE TAX PERIODS 01.04.2018 TO 31.03.2019 (ANNEXURE-A) AND ETC.,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

Sri. Aravind Chavan, learned counsel accepts notice for respondents.

With the consent of both parties, the matter is taken up for final disposal.

Petitioner has challenged the validity of the order in original at Annexure-A.

It is the case of the petitioner that the order passed is an ex parte order and the notice stated to have been issued was sent to the address of the principal place of business though the registration itself was cancelled with effect from 07.08.2019 and petitioner had closed down his office in the principal place of business. It is

3 - NC: 2026:KHC:6108 WP No. 2979 of 2026

HC-KAR

submitted that the notice issued during the year 2024 has not been served as the office was closed in the year 2019 itself.

Sri. Aravind Chavan, learned counsel for the respondent submits that the notice would be sent to the address available in the registration records and there was no other way to ascertain the address of the petitioner.

Petitioner further submits that even on merits

he has information to be placed before the assessing officer which would meet the show cause notice. Taking note that admittedly order passed is an ex parte order and also noticing the cancellation of registration suo motu with effect from 07.08.2019 and that the notice was issued in the year 2024 and that such notice would not have been served in light of assertion of the petitioner that principal place of business was closed, case is made out for interference.

4 -

NC: 2026:KHC:6108 WP No. 2979 of 2026

HC-KAR

Accordingly, the order at Annexure-A is set aside and the matter is remitted to the stage of reply to the show cause notice dated 07.09.2024. Petitioner to appear without further notice before the respondent on 23.02.2026. Needless to state the petitioner to be furnished with copy of show cause notice forthwith to enable the petitioner to make out reply to the show cause notice. All contentions are kept open.

Writ petition is accordingly disposed of .

Sd/(S SUNIL DUTT YADAV) JUDGE

VP