M/S Bnn Constructions Private Limited Vs the Deputy… — Company and Corporate | Karnataka HC (2026)

M/S Bnn Constructions Private Limited Vs the Deputy… — Company and Corporate | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Order of adjudication (Annexure-C) and consequential Form GST DRC-07 summary (Annexure-C1) set aside; matter remitted to the stage of reply to show-cause notice subject to payment of 10% of the tax demand before 31.03.2026; petitioner to appear before the respondent without further notice on 21.04.2026; all contentions kept open; copy of the Audit Report to be furnished by the authority on request.

Issue for consideration

Whether the ex parte order of adjudication passed without any reply to the show-cause notice (proceedings initiated on audit observations) should be set aside and the matter remitted to enable the petitioner to submit a reply on merits.

Court's answer

The Court considered it appropriate to enable the petitioner to take its stand on merits by way of reply to the show-cause notice, condoning the lapse in earlier non-participation, and put the petitioner on terms to pay 10% of the tax demand.

Ratio / Principle

The order at Annexures-C and C1 is set aside and the matter is remitted to the stage of reply to show-cause notice; the petitioner is to appear before the respondent without further notice on 21.04.2026, make the deposit of tax demand before 31.03.2026, with all contentions kept open and a copy of the Audit Report to be furnished by the authority on request.

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav, J.) disposed of a writ petition under Article 226 challenging an ex parte order of adjudication dated 30.12.2025 bearing No.DCCT(A)-5.11/BCPL/CR104/2025-26 for the tax period April 2021 to March 2022, together with the consequential summary in Form GST DRC-07 bearing No.ZD291225225260P (Annexures-C and C-1), passed without any reply to the show-cause notice, the proceedings having been initiated on the basis of audit observations. Noting the admitted absence of any reply, the Court set aside the order and remitted the matter to the stage of reply to the show-cause notice, condoning the petitioner's bona fide lapse in non-participation, subject to payment of 10% of the tax demand before 31.03.2026, and directed the petitioner to appear before the respondent without further notice on 21.04.2026; all contentions were kept open and the authority was to furnish a copy of the Audit Report on request.

NC: 2026:KHC:16016 WP No. 6911 of 2026

1 -

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 18^TH DAY OF MARCH, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

WRIT PETITION NO. 6911 OF 2026 (T-RES)

BETWEEN:

M/S. BNN CONSTRUCTIONS PRIVATE LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013, HAVING ITS REGISTERED OFFICE AT NO.B-03, MANYATA RESIDENCY, 10^TH CROSS, BENGALURU URBAN - 560 045.

(REPRESENTED BY ITS MANAGING DIRECTOR - SRI. B.N. NANJUNDAPPA)

…PETITIONER

(BY SRI. NAVEEN G.S., ADVOCATE)

AND:

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-5.11, DGSTO-5, 4^TH FLOOR, A-BLOCK, VTK-2, ROOM NO.402, RAJENDRANAGARA, KORAMANGALA, BENGALURU - 560 047.

…RESPONDENT

(BY SRI. K. HEMA KUMAR, AGA)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF ADJUDICATION BEARING NO.DCCT(A)-5.11/BCPL/CR104/2025-26 DATED 30.12.2025 PASSED BY RESPONDENT FOR THE TAX PERIOD APRIL 2021 TO MARCH 2022, TOGETHER WITH THE CONSEQUENTIAL SUMMARY IN FORM GST DRC-07

2 - NC: 2026:KHC:16016 WP No. 6911 of 2026

HC-KAR

DATED 30.12.2025 BEARING NO.ZD291225225260P PRODUCED AS ANNEXURES - C AND C-1 RESPECTIVELY.

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

The petitioner has sought for setting aside of the order of adjudication at Annexures-C and C1. It is submitted that due to bona-fide lapse, petitioner did not make out any reply to the show-cause notice which resulted in passing of an ex-parte order without benefit of reply on merits. It is submitted that matter may be remitted to the stage of show-cause notice and the petitioner would make out his stand.

Noticing that the order passed is admittedly an order without benefit of any reply of the petitioner and the proceedings have been initiated on the basis of audit observations, it would be appropriate to enable the petitioner to take his stand on merits, by way of reply to

3 - NC: 2026:KHC:16016 WP No. 6911 of 2026

HC-KAR

the show-cause notice by condoning the lapse in not participating in the proceedings earlier. Petitioner is put on terms and is directed to pay 10% of the tax demand.

Accordingly, the order at Annexures-C and C1 is set aside. Matter is remitted to the stage of reply to showcause notice. Petitioner to appear before the respondent without further notice on 21.04.2026. The deposit of tax demand is directed to be made before 31.03.2026. All contentions are kept open. The petitioner may make a request for copy of the Audit Report which may be furnished by the authority.

Accordingly, petition is disposed of .

Sd/(S SUNIL DUTT YADAV) JUDGE

MCR