[Cites 3, Cited by 0]
Karnataka High Court
M/S M R K Enterprises vs The Commissioner Of Commercial Taxes on 15 April, 2026
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
-1-
NC: 2026:KHC:20496
WP No. 7845 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 15TH DAY OF APRIL, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 7845 OF 2026 (T-RES)
BETWEEN:
1. M/S M R K ENTERPRISES
NO.1318, 1ST MAIN ROAD,
COORGALLI, MYSURU-570 018
REPRESENTED BY ITS PROPRIETOR
SHRI. MAQSOOD SHARIFF
... PETITIONER
(BY SRI. E.I. SANMATHI, ADVOCATE A/W
SRI DILIP M., ADVOCATE AND
SRI T.P. VENKATESH, ADVOCATE FOR
SRI NADEEM AHMED, ADVOCATE)
AND:
Digitally
signed by
VIJAYA P 1. THE COMMISSIONER OF COMMERCIAL TAXES
Location:
HIGH VANIJYA THERIGE BHAVAN,
COURT OF GANDHINAGAR,
KARNATAKA
BENGALURU-560 009
2. THE ASSISTANT COMMISSIONER OF
COMMERCIAL TAXES
LOCAL GOODS AND SERVICES TAXES OFFICE -190
SHESHADRIBHAVAN, DEWANS ROAD MYSORE,
KARNATAKA - 570 024
... RESPONDENTS
(BY SRI. K. HEMA KUMAR, AGA)
-2-
NC: 2026:KHC:20496
WP No. 7845 of 2026
HC-KAR
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
ADJUDICATION ORDER FOR THE PERIOD 2024-25 AND 2025-
26 VIDE ORDER DATED 19.02.2026 VIDE NO. ACCT/LGST-
190/MYS/ADJN/ASMT-16/06/2025-26 PASSED BY THE R-2 AT
ANNEXURE-E AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
ORAL ORDER
Petitioner has challenged the assessment order
passed under Section 64 of the
Karnataka Goods and Services Tax Act, 2017 (for short
'the Act'). Petitioner has made an additional prayer for
setting aside of the order of cancellation of registration at
Annexure-C dated 19.02.2026.
2. It is the case of the petitioner that the Authority
has erred in coming to the conclusion as reflected in the
impugned order by way of adjudication in summary
assessment proceedings under Section 64 of the Act. It is
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submitted that the material produced by the petitioner in
the present proceedings by way of memo dated
01.04.2026 contains e-way bill number, date of supply,
trader name, value, as well as vehicle number, which if
taken note of would clear the alleged discrepancies. The
ledger account of M/s. M.R.K. Enterprises for the relevant
period is also produced along with a memo. It is submitted
that petitioner would demonstrate that there were no
alleged discrepancies if matter is remitted for
reconsideration.
3. Petitioner has also assailed the order of
cancellation of registration. It is submitted that the
Authority has cancelled the registration on the premise
that the business premise of the petitioner was found to
be non-existent at the declared place of business. It is
submitted that this cancellation of registration is
intertwined with the correctness of the order at Annexure-
E. It is submitted that if the order at Annexure-E were to
be set aside and the matter is remitted for
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reconsideration, cancellation of registration at Annexure-C
ought to be set aside and registration be restored.
4. Perused the order at Annexure-E. The Authority
after having received inputs from the various Enforcement
Wings had conducted the inspection of the registered place
of business of M/s. M.R.K. Enterprises and it was found at
the time of inspection that the registered premises was
found to be locked. Enquiry was made with the
neighbouring residents and shop owners who had also
stated that the petitioner would visit the place once in 10
to 15 days and that no business activities were being
conducted. On the basis of information furnished, it was
found that the Input Tax Credit availed was not in
accordance with the actual supplies made and there were
discrepancies which would point out to ineligible availment
of input tax credit. The Authority on the basis of inspection
of the place of business and material had recorded a
finding that the petitioner was ineligible to avail of Input
Tax Credit.
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5. Petitioner has filed memo for production of
additional documents and has produced details of the
e-way bill number, trader name, quantity and vehicle
number. Further, the extract of the ledger accounts of
M/s. M.R.K. Enterprises for different periods of time have
been produced. It is pointed out that if the Authority was
to have relooked into such material, the discrepancies as
noticed in the order would be explained.
6. Taking note of the material placed on record
and noticing the assertion of the petitioner, it would be
appropriate to remit the matter back for reconsideration
upon terms. Such order is passed noticing the
consequences that would flow if the order is allowed to
stand while taking note of the additional documents
produced. Needless to state, the contents of the additional
documents produced is a matter to be demonstrated
before the Authority to be a reflection of genuine
transactions.
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7. Accordingly, the order at Annexure-E is set
aside and the matter is remitted to the 2nd respondent for
fresh consideration. The 2nd respondent may take note of
the additional documents now produced and any other
documents that may be produced by the petitioner to
demonstrate the genuineness of the transactions and the
eligibility regarding Input Tax Credit availed as having
been in order.
8. In light of setting aside of the order at
Annexure-E, the order at Annexure-C is also set aside and
registration certificate is directed to be restored. The
Authorities are at liberty to pass appropriate orders in
accordance with law after considering the material placed
by the petitioner.
9. Petitioner to appear before respondent No.2
without further notice on 18.05.2026. Petitioner to pay
cost of Rs.25,000/- to the Karnataka Advocate Clerks
Benevolent Trust, High Court Building, Bangalore.
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10. In terms of the above, the writ petition is
disposed of.
SD/-
(S SUNIL DUTT YADAV)
JUDGE
VP
