M/S. J K Associates Vs the State of Karnataka — GST and Indirect Tax | Karnataka HC (2026)

M/S. J K Associates Vs the State of Karnataka — GST and Indirect Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Petition disposed of: order at Annexure-A set aside; matter remitted to the stage of reply to show-cause notice; petitioner to appear before respondent No.3 on 07.04.2026 without further notice and to pay 10% of the demand of tax before that date, failing which the indulgence stands revoked; all contentions kept open.

Issue for consideration

Whether the ex-parte Order-in-Original dated 29.06.2024 passed under Section 73(9) of the CGST/SGST Act, 2017, without the petitioner's reply to the show-cause notice or participation in the personal hearing, should be set aside and the petitioner afforded an opportunity to take its stand by way of reply to the show-cause notice, on terms.

Court's answer

The petitioner's assertion that its lapse in not filing a reply and not participating in the personal hearing was due to bona-fide reasons may be accepted, and the petitioner may be afforded an opportunity to take its stand in writing by way of reply to the show-cause notice, on terms.

Ratio / Principle

The order at Annexure-A is set aside and the matter is remitted to the stage of reply to show-cause notice; the petitioner is to appear before respondent No.3 without further notice on 07.04.2026 and to pay 10% of the demand of tax before that date.

Key takeaways

If the petitioner is absent on the said date (07.04.2026) and does not avail the opportunity, the indulgence granted by the Court would stand revoked.ratio¶39

Detailed headnote1 paragraphs

GST – Writ petition under Article 226 of the Constitution of India against ex-parte Order-in-Original dated 29.06.2024 passed under Section 73(9) of the CGST/SGST Act, 2017 (Ref. No. ZD290624138577V) in adjudicating proceedings No. ADJU-146/ACCT(A)-3.2/2023-24 – Demand premised on difference in tax amount between GSTR-9 and GSTR-3B and excess ITC claim in GSTR-3B compared to GSTR-2A – Order passed without reply to show-cause notice or personal hearing; petitioner pleaded bona-fide reasons for non-participation – Held: petitioner's explanation may be accepted and opportunity granted to reply to the show-cause notice on terms – Order at Annexure-A set aside; matter remitted to the stage of reply to show-cause notice – Remand conditioned on petitioner appearing before respondent No.3 on 07.04.2026 without further notice and paying 10% of the demand of tax before that date – If petitioner is absent or does not avail the opportunity, the indulgence granted stands revoked – All contentions kept open – Petition disposed of (S Sunil Dutt Yadav, J).

NC: 2026:KHC:12851 WP No. 4954 of 2026

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 3^RD DAY OF MARCH, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 4954 OF 2026 (T-RES)

BETWEEN:

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

M/S. J. K. ASSOCIATES, REGISTERED UNDER KGST ACT, 2017, GSTIN 29AKLPB03141Z2, NO.463, 17^TH CROSS, 11^TH B MAIN, 5^TH BLOCK, JAYANAGAR, BENGALURU-560027, REPRESENTED BY ITS DESIGNATED PROPRIETOR, SRI. MEKANAGADDE KUSHALAPPA BAGAVAN, AGED ABOUT 44 YEARS, RESIDING AT NO.463 JAYANIVAS, 17^TH CROSS, 11^TH B MAIN ROAD, 5^TH BLOCK, JAYANAGAR, BENGALURU SOUTH, PO JAYANAGAR, DIST. BENGALURU, KARNATAKA-560041.

…PETITIONER

(BY SRI. SATHYANARAYANA T. R., ADVOCATE)

AND:

THE STATE OF KARNATAKA, REPRESENTED BY SECRETARY, DEPARTMENT OF COMMERCIAL TAX, VIDHANA SOUDHA, BANGALORE-560001.

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NC: 2026:KHC:12851 WP No. 4954 of 2026

HC-KAR

DEPARTMENT OF GOODS AND SERVICE TAX, KALIDASA ROAD, VANIJYA THERIGE KARYALAYA, GANDHI NAGARA, BENGALURU - 560009, REP. BY ITS COMMISSIONER.

ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (AUDIT)-3.2, DGSTO-3, 2^ND FLOOR, TTMC B BLOCK, BMTC BUILDING, SHANTHINAGAR, BENGALURU-560027.

…RESPONDENTS

(BY SRI. K HEMA KUMAR, AGA FOR R1 AND R3; SRI. JEEVAN J. NEERALGI, ADVOCATE FOR R2)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE IMPUGNED ORDER WHICH IS ANNEXED AS ANNEXURE-A DATED 29.06.2024 WHICH WAS PASSED UNDER SECTION 73(9) OF THE CGST/SGST ACT, 2017 BEARING REFERENCE NO. ZD290624138577V AND ALSO BY REMANDING BANK FOR THE FRESH ADJUDICATING PROCEEDINGS BEARING NO. ADJU-146/ACCT(A)-3.2/2023-24 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

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NC: 2026:KHC:12851 WP No. 4954 of 2026

HC-KAR

ORAL ORDER

The petitioner has called in question the validity of the order at Annexure-A which is the Order-in-Original. The authority has proceeded on the premise of difference in tax amount as noticed between GSTR-9 and GSTR-3B. The authority has recorded a finding that the petitioner was entitled to pay differential tax liability. The authority has also noticed excess claim of ITC and GSTR-3B, when compared with the declaration in GSTR-2A.

Learned counsel for the petitioner would submit that non-filing of reply and non-participating in personal hearing is due to bona-fide reasons. It is further submitted that if opportunity is granted, the petitioner would demonstrate with material that the difference as noticed between GSTR-3B and GSTR-2A does not exist.

Perused the order at Annexure-A. It is noticed

that the order passed is an ex-parte order that is without benefit of reply to the show-cause notice by the petitioner.

4 - NC: 2026:KHC:12851 WP No. 4954 of 2026

HC-KAR

The petitioner's assertion that the lapse is due

to bona-fide reasons may be accepted and petitioner may be afforded an opportunity to take their stand in writing by way of reply to the show-cause notice by putting the petitioner on terms.

Accordingly, the order at Annexure-A is set aside. Matter is remitted to the stage of reply to showcause notice. Petitioner to appear before respondent No.3 without further notice on 07.04.2026. Petitioner to pay 10% of the demand of tax before 07.04.2026.

Needless to state, if the petitioner is absent on

the said date and does not avail the opportunity, the indulgence granted by this Court would stand revoked.

Accordingly, petition is disposed of . All

contentions are kept open.

Sd/(S SUNIL DUTT YADAV) JUDGE

MCR