M/S Rizmaq International Pvt. Ltd. Vs Commercial Tax… — GST and Indirect Tax | Karnataka HC (2026)

M/S Rizmaq International Pvt. Ltd. Vs Commercial Tax… — GST and Indirect Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Impugned adjudication order dated 30.12.2024 (Annexure-A) and Summary of Order (Annexure-A1) set aside; matter remitted to the reply stage of the show-cause notice dated 27.09.2024; authorities directed to rescind the bank attachment forthwith; petitioner to appear before the respondent on 15.04.2026 without further notice; all contentions kept open.

Issue for consideration

Whether the adjudication order at Annexure-A (with Summary of Order at Annexure-A1), passed ex parte without reply or personal hearing, should be quashed/set aside. +1 more

Court's answer

The order of adjudication at Annexure-A and the Summary of the Order at Annexure-A1 are set aside.

Ratio / Principle

The matter is remitted back to the stage of reply to the show-cause notice dated 27.09.2024.

Key takeaways

In light of the setting aside of the adjudication order, the authorities are directed to rescind the bank attachment forthwith.ratio¶42
The petitioner is to appear before the respondent on 15.04.2026 without further notice; all contentions are kept open.ratio¶44

Detailed headnote1 paragraphs

GST / Section 73 adjudication (KGST & CGST Acts, 2017) — ex parte order for tax periods April 2020 to March 2021 set aside. The Karnataka High Court (single Judge, S Sunil Dutt Yadav, J.) found that the assessee had not availed of the opportunities extended, filed no written submissions or objections, and did not attend the personal hearing, so proceedings were concluded on the materials without any reply. Taking note of the petitioner's explanation (tax already paid for the relevant period; inability to reconcile outward taxable supplies per GSTR-1 and GSTR-3 owing to the ill-health and demise of a Director), the Court set aside the adjudication order dated 30.12.2024 (No. CTO/LGSTO-040/R1VS3B/2024-25) and the Summary of Order, remitted the matter to the reply stage of the show-cause notice dated 27.09.2024, directed rescission of the bank attachment forthwith, and required the petitioner to appear before the respondent on 15.04.2026 without further notice, keeping all contentions open. Filed under Article 226 of the Constitution of India.

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NC: 2026:KHC:14339 WP No. 7796 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 10^TH DAY OF MARCH, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

WRIT PETITION NO. 7796 OF 2026 (T-RES)

BETWEEN:

M/S RIZMAQ INTERNATIONAL PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013

REPRESENTED HEREIN BY ITS DIRECTOR, SHRI SHAIKH SAMEER AHMED, RESIDING AND HAVING OFFICE AT

NO. 93/44, 8^TH CROSS, OPPOSITE METHODIST CHURCH, WILSON GARDEN, BENGALURU - 560 027

… PETITIONER

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

(BY SRI. SANDEEP HUILGOL., ADVOCATE)

AND:

COMMERCIAL TAX OFFICER LSGTO - 040 BANGALORE 6^TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, KORAMANGALA BENGALURU - 560 095

… RESPONDENT

(BY SRI. HEMA KUMAR K., AGA)

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NC: 2026:KHC:14339 WP No. 7796 of 2026

HC-KAR

THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO I. QUASHING THE IMPUGNED ADJUDICATION ORDER DATED 30.12.2024 BEARING NO. CTO/LGSTO-040/R1VS3B/2024-25 PASSED BY THE RESPONDENT UNDER SECTION 73 OF THE KARNATAKA GOODS AND SERVICES TAX ACT, 2017/ CENTRAL GOODS AND SERVICES TAX ACT, 2017 READ WITH SECTION 6 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND SECTION 20 OF INTEGRATED GOODS AND SERVICES TAX ACT, 2017 FOR THE TAX PERIODS APRIL 2020 TO MARCH 2021 (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

The petitioner has called in question the validity of

the order of adjudication at Annexure-A as well as Summary of the Order at Annexure-A1 and has sought for stay of recovery proceedings and set aside the consequential recovery proceedings.

Perused the order of adjudication. It is noticed

that the order is passed while observing that the assessee

has not availed of opportunities extended and has not filed the written submissions or objections. It is also submitted

3 - NC: 2026:KHC:14339 WP No. 7796 of 2026

HC-KAR

that the petitioner has not availed of opportunity of personal hearing. The authority has concluded the proceedings on the basis of materials provided without any reply on the part of the petitioner.

The petitioner submits that petitioner had paid tax for the relevant period however, was not in a position to reconcile regarding outward taxable supplies as per GSTR-1 and GSTR-3. Petitioner submits that due to ill-health, eventual demise of his mother who was also the Director, the other Director was not in a position to participate in the proceedings.

In light of the points made out and taking note of the assessment of tax for the relevant period, the order of adjudication at Annexure-A as well as Summary of the Order at Annexure-A1 are set aside and the matter is

remitted back to the stage of reply to the show-cause notice dated 27.09.2024.

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NC: 2026:KHC:14339 WP No. 7796 of 2026

HC-KAR

In light of setting aside of the order of adjudication

at Annexure-A as well as Summary of the Order at

Annexure-A1, the authorities are directed to rescind the bank attachment forthwith.

Petitioner to appear before the respondent

without further notice on 15.04.2026. All contentions are

kept open.

Sd/(S SUNIL DUTT YADAV) JUDGE

NP