[Cites 3, Cited by 0]
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;
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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.
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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
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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
