Karnataka High Court
M/S Nirmithi Kendra vs State Of Karnataka on 13 November, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:46297
WP No. 30225 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 30225 OF 2025 (T-RES)
BETWEEN:
M/S NIRMITHI KENDRA
BENGALURU RURAL DISTRICT
2ND FLOOR, BENGALURU RURAL,
ZILLA PANCHAYAT, K.G ROAD,
BENGALURU-560009
REP. BY SHRI.MOHAN KUMAR S,
PROJECT DIRECTOR
...PETITIONER
(BY SRI. ANIL KUMAR B., ADVOCATE)
AND:
1. STATE OF KARNATAKA
Digitally signed THROUGH ITS PRINCIPAL SECRETARY,
by JUANITA
THEJESWINI FINANCE DEPARTMENT,
Location: HIGH VIDHANA SOUDHA,
COURT OF BENGALURU-560001.
KARNATAKA
2. THE COMMISSIONER OF COMMERCIAL
TAXES IN KARNATAKA,
VANIJYA THERIGE KARYALAYA,
GANDHINAGAR,
BENGALURU-560009.
3. THE ASSISTANT COMMISSIONER
OF COMMERCIAL TAXES
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NC: 2025:KHC:46297
WP No. 30225 of 2025
HC-KAR
(AUDIT 1.5), DGSTO-1,
TTMC BMTC BUS STAND
YESHWANTHAPUR
BENGALURU 560 022.
...RESPONDENTS
(BY SRI. K.HEMA KUMAR., AGA FOR R1 TO R3)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED
RECTIFICATION ORDER NO. 398431543.02 DTD. 23.07.2025
PASSED BY R-3 VIDE ANNX-A TO THE WRIT PETITION.QUASH THE
CONSEQUENT NOTICE OF DEMAND NO. 110824713.02 DTD.
23.07.2025 ISSUED BY R-3 VIDE ANNX-B TO THE WRIT PETITION
AND GRANT AN INTERIM ORDER TO STAY THE OPERATION OF
THE IMPUGNED RECTIFICATION ORDER NO. 398431543.02 DTD.
23.07.2025 PASSED BY R-3 VIDE ANNX-A TO THE WRIT PETITION
AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In this petition, the petitioner seeks for the following reliefs:
a) issue a writ of certiorari quashing the impugned Rectification Order No.398431543.02 dated 23.07.2025 passed by Respondent No.3 vide ANNEXURE-A to the Writ Petition;-3-
NC: 2025:KHC:46297 WP No. 30225 of 2025 HC-KAR
b) issue a writ of certiorari quashing the consequent Notice of Demand No.110824713.02 dated 23.07.2025 issued by Respondent No.3 vide ANNEXURE-B to the Writ Petition;
c) grant such other order or direction as deemed fit by this Hon'ble Court in the facts and circumstances of the case."
2. Heard the learned Counsel for the petitioner and learned AGA for the respondents and perused the material on record.
3. A perusal of the material on record will indicate that on 31.12.2021, the respondent No.3 passed a re-assessment order, disallowing the excess claim of input tax credit along with interest and penalty. Aggrieved by that part of the re-assessment order, the petitioner preferred an appeal on 27.11.2023 during the pendency of which, the respondent formulated/floated Karasamadhana Scheme 2023, in pursuance of which, the petitioner applied for the benefit of the Scheme and was granted the said benefit by the respondents.
4. It is the grievance of the petitioner that despite granting the benefit of the Karasamadana Scheme and extending the waiver in favour of the petitioner, the third respondent issued a rectification -4- NC: 2025:KHC:46297 WP No. 30225 of 2025 HC-KAR notice dated 11.02.2025, purporting to invoke Section 69 of the Karnataka Value Added Tax Act, 2003 to which the petitioner submitted a reply, subsequent to which, the third respondent passed the impugned rectification order, confirming demand of Input tax credit along with interest and penalty dated 23.07.2025, aggrieved by which the petitioner is before this Court by way of the present petition.
5. Per contra, learned Counsel for the respondents submits that there is no merit in the writ petition and the same is liable to be dismissed.
6. The issue in controversy between the parties in the present petition as regards the right of the respondents to reopen proceedings which had attained finality under the Karasamadhana Scheme is no longer res integra, in the light of the following judgments of this Court:
i) M/s.Omkar Land Developers Vs. The Additional Commissioner of Commercial Taxes - STA No.8/2025 dated 18.06.2025;
ii) M/s.Fortious Infradevelopers LLP Vs. The Additional Commissioner of Commercial Taxes (Zone)-1 and -5- NC: 2025:KHC:46297 WP No. 30225 of 2025 HC-KAR Others - STA No.18/2022 and connected matters dated 02.04.2025; and
iii) Castles Vista Pvt. Ltd. Vs. The Joint Commissioner of Commercial Taxes (Admn) and Others -
W.P.No.687/2025 and connected matters dated 04.09.2025.
7. As stated supra, having granted the benefit of the Karasamadhana Scheme in favour of the petitioner, the respondent No.3 did not have jurisdiction or authority of law to reopen the proceedings and initiate rectification proceedings and consequently, the impugned order deserves to be quashed.
8. In the result, I pass the following:
ORDER
i) Writ Petition is hereby allowed.
ii) The impugned Rectification order dated 23.07.2025 vide Annexure 'A' and the impugned Notice of Demand dated 23.07.2025 vide Annexure 'B' are hereby quashed.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE JT/-