Karnataka High Court
M/S Unicorn Traders vs State Of Karnataka on 14 October, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2025:KHC-D:13834
WP No. 105807 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA,AT DHARWAD
DATED THIS THE 14TH DAY OF OCTOBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 105807 OF 2025 (T-RES)
BETWEEN:
M/S UNICORN TRADERS,
11/356, KOOTANAD THRITHALA ROAD,
THRITHALA, PALAKKAD, KERALA - 69303.
THROUGH ITS PROPRIETOR
MR. ABDU RAHIMAN E K,
AGED ABOUT 26 YEARS,
RESIDING AT OF EDAKANDAN HOUSE,
TIRURANGADI, CHEMMAD,
MALAPPURAM, KERALA - 676 501.
...PETITIONER
(BY SRI. GAYATRI S. R., ADVOCATE)
AND:
1. STATE OF KARNATAKA
THROUGH ITS SECRETARY,
MINISTRY OF FINANCE,
ROOM NO.208, 2ND FLOOR,
VIDHANA SOUDHA, BENGALURU - 01.
Digitally signed by
RAKESH S
HARIHAR 2. COMMISSIONER OF COMMERCIAL TAXES,
Location: High
Court of KARNATAKA, VANIJYA THERIGE KARYALAYA-1,
Karnataka,
Dharwad Bench, 1ST FLOOR, GANDHINAGAR,
Dharwad
BENGALURU - 560 009.
3. JOINT COMMISSIONER OF COMMERCIAL TAXES
(APPEALS), DHARWAD DIVISION,
HUBBALLI, DIST DHARWAD - 590 001.
4. ASSISTANT COMMISSIONER OF
COMMERCIAL TAXES, (ENFORCEMENT),
SIRSI, KARNATAKA STATE - 581 401.
...RESPONDENTS
(BY SMT. KIRTILATA R. PATIL, AGA FOR R1 TO R4)
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NC: 2025:KHC-D:13834
WP No. 105807 of 2025
HC-KAR
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT, ORDER
OR DIRECTION IN THE NATURE OF CERTIORARI QUASHING THE
IMPUGNED CONFISCATION ORDER (ANNEXURE-A) DATED 20.05.2025
IN BEARING NO. APPEAL NO. APL/GST-912/2024-25 WHICH HAS BEEN
PASSED WITHOUT JURISDICTION BY RESPONDENT NO.3 ISSUE ANY
OTHER WRIT ORDER OR DIRECTION IN THE NATURE OF MANDAMUS,
DIRECTING THE RESPONDENTS TO RELEASE THE GOODS AND
VEHICLE UNCONDITIONALLY AND ETC.,
THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING
B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)
1. The petitioner is before this Court seeking for the
following prayer:
I. Issue a writ, order or direction in the nature of
certiorari quashing the impugned confiscation order
(Annexure-A) dated 20.05.2025 in bearing no.
Appeal No. APL/GST-912/2024-25 which has been
passed without jurisdiction by Respondent No.3
II. Issue any other writ order or direction in the nature
of mandamus, directing the Respondents to release
the goods and vehicle unconditionally.
III. Grant costs and interests and
IV. Grant such further and other reliefs as the nature
and circumstances of the case may require.
2. Heard the learned counsel Smt.Gayatri S.R. for
the petitioner and the learned HCGP Smt.Kirtilata R.Patil for
the respondent-State.
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HC-KAR
3. The learned counsel Smt.Gayatri S.R. appearing for
the petitioner submits that the issue in the lis stands
covered by the judgment rendered by the Coordinate Bench
in W.P.No.105123/2024 disposed on 23rd September 2025.
4. The learned HCGP, Smt.Kirtilata R.Patil would not
dispute the position of law as laid down by the Coordinate
Bench, in the aforesaid judgment.
5. The Coordinate Bench has held as follows:
"1. The petitioner is before this Court seeking for the
following reliefs:
i. Issue a writ, order or direction in the
nature of certiorari quashing the
impugned Appellate Order Appeal
No. APL/GST-121-2218-409
(Annexure-A) dated 15.09.2022
which has been passed by without
jurisdiction by the respondent no.4.
ii. Issue a writ, order or direction in the
nature of certiorari quashing the
impugned confiscation order
(Annexure-B) dated. 17.09.2021
which has been issued by without
jurisdiction passed by the
respondent no.6.
iii. Direct the Respondents to refund the
amount received by the respondent
through auction of the goods.
iv. Issue any other writ or order or
direction, which this Hon'ble Court
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HC-KAR
may deem fit and proper under the
facts and circumstances of the
present case.
v. Grant costs and interest.
vi. Grant such further and other reliefs
as the nature and circumstances of
the case may require.
2. A notice was issued to the petitioner calling upon
him to pay the differential tax along with penalty.
Consequent to the said notice, the goods in
question were seized/confiscated and
subsequently brought to auction. The proceeds of
the said auction are presently lying with the
respondents.
3. Learned counsel for the petitioner submits that the
amount realized from the auction is in excess of
20% of the demand raised against the petitioner.
In such circumstances, it is submitted that the
petitioner has complied with the requirement
under Clause (b) of Sub-section (8) of Section
112 of the Karnataka Goods and Services Tax Act,
2017 (hereinafter referred to as 'the KGST Act').
Accordingly, the petitioner would be entitled to
the benefit of Section 112(9) of the KGST Act, and
no further recovery proceedings can be initiated
against him pending appeal.
4. In light of the fact that the GST Appellate Tribunal
has not yet become operational, liberty is
reserved to the petitioner to approach the
Tribunal within 60 days from the date on which
the Tribunal becomes functional, in terms of
Notification dated 17.09.2025.
5. The respondents shall not initiate or continue any
recovery proceedings against the petitioner during
this interim period, subject to the auction
proceeds continuing to be held in deposit.
6. The writ petition stands disposed of accordingly."
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5. In the light of the aforesaid submission, which is
in unison, the writ petition stands disposed in the aforesaid
manner.
Sd/-
(M.NAGAPRASANNA)
JUDGE
KGK/CT-ASC
