Karnataka High Court
M/S Kunal Traders vs The State Of Karnataka on 1 April, 2026
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NC: 2026:KHC-D:4917
WP No. 104291 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 1ST DAY OF APRIL, 2026
BEFORE
THE HON'BLE MS. JUSTICE JYOTI M
WRIT PETITION NO.104291 OF 2025 (T-RES)
BETWEEN:
M/S. KUNAL TRADERS,
B 24 S NO.681/1A AND B, ANGOL,
INDUSTRIAL ESTATE, UDYAMBAG,
BELAGAVI-590 008,
GSTIN: 29ADXPH4269C1Z4,
REPRESENTED HEREIN BY ITS PROPRIETOR,
MR. KUNAL HUMBARARAWADI,
AGED ABOUT 40 YEARS,
ADDRESS: HOUSE NO.674/1,
RANAPRATAP ROAD,
TILAKWADI, BELGAUM-590 006,
AADHAR NO.417148965820.
EMAIL ID: [email protected]
... PETITIONER
(BY SRI. GANESH VISHWANATH SHANDAGE AND
Digitally signed
by
PREMCHANDRA
MS. PRATIMA SHIPURKAR S., ADVOCATES)
MR
Location: HIGH
COURT OF
KARNATAKA
AND:
1. THE STATE OF KARNATAKA,
DEPARTMENT OF FINANCE,
REPRESENTED BY CHIEF SECRETARY
TO THE GOVERNMENT OF KARNATAKA,
VIDHANA SOUDHA, BENGALURU-560 009.
2. THE COMMISSIONER OF COMMERCIAL
TAXES, COMMERCIAL TAX DEPARTMENT,
GOVERNMENT OF KARNATAKA,
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WP No. 104291 of 2025
HC-KAR
COMMERCIAL TAX OFFICE-1,
FIRST MAIN ROAD, GANDHINAGAR,
BENGALURU-560 009.
3. THE JOINT COMMISSIONER OF COMMERCIAL TAXES,
(ADMINISTRATION), DGSTO, BELAGAVI,
SUMOULYA SOUDHA, CLUB ROAD,
BELAGAVI-590 001.
4. THE ASSISTANT COMMISSIONER OF
COMMERCIAL TAXES,
LOCAL GOODS AND SERVICE TAX OFFICE-380,
SUMOULYA SOUDHA, CLUB ROAD,
BELAGAVI-590 001.
5. THE COMMERCIAL TAX OFFICER,
(AUDIT)-1, BELAGAVI,
SUMOULYA SOUDHA, CLUB ROAD,
BELAGAVI-590 001.
6. THE ASSISTANT COMMISSIONER
OF COMMERCIAL TAXES (ENFORCEMENT)-2,
NORTH ZONE, SUMOULYA SOUDH,
4TH FLOOR, CLUB ROAD, BELAGAVI-590 001.
... RESPONDENTS
(BY SMT. NANDINI.B.SOMAPUR, AGA)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF
THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.
THIS WRIT PETITION IS LISTED FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, AN ORDER IS MADE AS
UNDER:
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WP No. 104291 of 2025
HC-KAR
ORAL ORDER
Sri.Ganesh Vishwanath Shandage and Ms.Pratima Shipurkar S., counsel for the petitioner and Smt.Nandini B.Somapur., AGA for respondents-State have appeared in person.
2. The Writ Petition is filed seeking the following prayers:
"(a) Issue a Writ of Certiorari, or such other Writ, Order or direction in the nature of a Writ of Certiorari, quashing the impugned Rectification Order vide No: CTO (ADT-1) BGM:
GST: ADT01/09/2024-25 dated 27.03.2025 passed by Respondent No.05 under Section 161 of CGST Act, 2017 (Annexure A);
(b) Issue a Writ of Certiorari, or such other Writ, Order or direction in the nature of a Writ of Certiorari, quashing the impugned Rectification show cause notice vide Reference No. NUL dated 08.11.2024 passed by Respondent No. 05 under Section 161 of CGST Act, 2017 (Annexure B);
(c) Issue an appropriate writ, order or direction, holding and declaring that the Rectification proceedings as initiated and carried under section 161 of CGST Act, 2017 is ab initio void for being illegal and for being wholly without jurisdiction;-4-
NC: 2026:KHC-D:4917 WP No. 104291 of 2025 HC-KAR
(d) Issue a Writ of Mandamus, or such other Writ, Order or direction, as this Court may deem fit, directing Respondent No.04 to Unblock the Input tax credit of Rs.21,83,938 in electronic credit ledger maintained on GST common portal by giving effect to the Order in original vide No: CTO (ADT-
1) BGM: GST: ADT/01/09/2024-25 dated 12.09.2024 passed by Respondent No.05 under section 74(9) of CGST Act, 2017 (Annexure K); and
e) Pass such other or further orders as this Court may deem fit and proper in the facts and circumstances of the case, and in the interest of justice and equity, including the costs of this Writ Petition. For which Act of Kindness, the Petitioner shall as in duty bound, ever pray."
3. Counsel for the respective parties urged several contentions. The arguments are heard and the records are perused with care.
4. It is not in dispute that an original order came to be passed on 12.09.2024, whereby the action of blocking Input Tax Credit (ITC) by the ACCT, L.G.S.T.O-380, Belagavi, was found to be untenable. Consequently, the said ITC amounting to Rs.21,83,938/- was ordered to be unblocked. Thereafter, a rectification order came to be passed on 27.03.2025. -5-
NC: 2026:KHC-D:4917 WP No. 104291 of 2025 HC-KAR
5. Counsel for the petitioner submits that the rectification order is without jurisdiction, inasmuch as the same has been passed beyond the statutory period of limitation. It is further submitted that the rectification order, produced as Annexure-A dated 27.03.2025, has been passed after six months from the date of the original order dated 12.09.2024.
6. On perusal of Section 161 of the Central Goods and Services Tax Act, 2017, it is evident that the time limit prescribed for passing a rectification order is six months from the date of the original order. In the present case, the impugned rectification order has admittedly been passed beyond the stipulated period of limitation. Hence, the impugned rectification order is unsustainable in law.
7. For the foregoing reasons, this Court deems it appropriate to quash the impugned notice as well as the rectification order.
8. Accordingly, a writ of certiorari is issued. The impugned rectification order dated 27.03.2025 and the impugned -6- NC: 2026:KHC-D:4917 WP No. 104291 of 2025 HC-KAR show-cause notice dated 08.11.2024 passed by respondent No.5 are hereby quashed.
9. Resultantly, the writ petition stands allowed.
Sd/-
(JYOTI M) JUDGE AM/-
LIST NO.: 1 SL NO.: 77