M/S. Maruthi Departmental Stores Vs the Assistant Commissioner of Commercial Taxes

M/S. MARUTHI DEPARTMENTAL STORES REPRESENTED BY ITS PROPRIETRIX SMT. GAWARI DEVI NO.227, AMS LAYOUT LATTICE NETWORK ROAD VIDHYARANYAPURA BENGALURU - 560 097 AGED ABOUT 49 YEARS GSTIN: 29AFVPD8397P1Z2

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… PETITIONER

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(BY SRI. PRANAY SHARMA Y, ADVOCATE)

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Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

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AND:

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-6.1), DGSTO-6 3^RD FLOOR, KIADB BUILDING, 14^TH CROSS, 2^ND STAGE PEENYA INDUSTRIAL AREA, BENGALURU - 560 058

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THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-6.1), DGSTO-6,

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NC: 2026:KHC:15445 WP No. 8554 of 2026

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HC-KAR

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3ND FLOOR,

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KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA BENGALURU - 560 058

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THE JOINT COMMISSIONER OF COMMERCIAL TAXES DGSTO-6 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA, BENGALURU - 560 058

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THE COMMISSIONER OF COMMERCIAL TAXES, KARNATAKA, VANIJYA THERIGE KARYALAYA, GANDHI NAGAR, KALIDASA ROAD, BENGALURU-560 009.

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CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, REPRESENTED BY ITS CHAIRPERSON, NORTH BLOCK, NEW DELHI-110 001

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STATE OF KARNATAKA, REPRESENTED BY SECRETARY FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE 560 001.

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…RESPONDENTS

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(BY SRI. HEMAKUMAR, AGA FOR R1 TO R4 AND R6

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SRI. JEEVAN J NEERALGI, ADVOCATE FOR R5)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227

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OF THE CONSTITUTION OF INDIA PRAYING TO I.ISSUE A

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HC-KAR

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WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF

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A WRIT OF CERTIORARI QUASHING THE ORDER IN ORIGINAL PASSED UNDER SECTION 73 OF THE ACT BY THE RESPONDENT NO.1 DATED 12.04.2024 FOR THE TAX

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PERIOD 2018-19 VIDE REFERENCE

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NO.ZD2904240299806. COPY OF THE ORDER IN ORIGINAL DATED 12.04.2024 IS ENCLOSED AND MARKED AS ANNEXURE A1 AND ETC.

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

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CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

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ORAL ORDER

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The petitioner has sought for setting aside of the Order-in-Original at Annexure-A1 passed under Section 73 of the Central Goods and Service Tax Act, 2017 and Karnataka Goods and Service Tax Act, 2017.

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NC: 2026:KHC:15445 WP No. 8554 of 2026

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HC-KAR

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Learned counsel for the petitioner submits that

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the proceedings have culminated in an ex-parte order. It is submitted that the petitioner was not able to take his stand as regards the show cause notice, which was issued on the premise that excess input tax credit was claimed and that there was a discrepancy between GSTR-3B returns and the returns of the supplier in GSTR-2A.

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The petitioner further submits that he is in a position to demonstrate that there is no discrepancy between GSTR-3B and the declaration in GSTR-2A and that the lapse in not participating in the proceedings is due to bona fide reasons and the order may be set aside and the matter be remitted to the stage of reply to the show cause notice.

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Perused the order at Annexure-A1.

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It is noticed that the authority has observed

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that the input tax credit availed by the petitioner was not

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NC: 2026:KHC:15445 WP No. 8554 of 2026

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HC-KAR

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reflected in the declaration of the supplier in GSTR-2A returns.

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Taking note of the assertion of the petitioner

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that the alleged discrepancy between GSTR-3B and GSTR2A would be demonstrated by way of material, it would be appropriate to set aside the orders at Annexures-A1 and B1. It is also noticed that the petitioner has suffered an identical order at Annexure-B1 and the authority had also noticed similar discrepancy as regards GSTR-3B vis-à-vis GSTR-2A.

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In light of the identical observations made and

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noticing that both the orders are ex-parte, the order at Annexures-A1 and B1 are set aside and the matter is remitted to the stage of reply to the show cause notices vide Annexures-A2 and B2. All contentions are kept open.

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