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;
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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
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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
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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/-
