[Cites 6, Cited by 0]
Karnataka High Court
M/S S P Metals vs Additional Commissioner Of Commercial ... on 17 March, 2026
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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WP No. 4273 of 2026
C/W WP No. 4225 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 4273 OF 2026 (T-RES)
C/W
WRIT PETITION NO. 4225 OF 2026 (T-RES)
IN WP No. 4273/2026
BETWEEN:
M/S. S P METALS,
NO.7,8 SRIGANDHAKAVALU,
YASHWANTHAPURA HOBLI,
BENGALURU-560091,
REPRESENTED BY ITS PROPRIETOR
SRI. SARAVANAN S/O SRINIVASAN A.,
AGED ABOUT 45 YEARS.
...PETITIONER
Digitally (BY SRI. SHREEHARI, ADVOCATE)
signed by
VIJAYA P
Location: AND:
HIGH
COURT OF 1. ADDITIONAL COMMISSIONER OF COMMERCIAL
KARNATAKA
TAXES,
(SMR)-1, BENGALURU,
7TH FLOOR, VANIJYA THERIGE KARYALAYA- 1,
KALIDASA MARG, 1ST MAIN,
GANDHINAGAR, BENGALURU - 560009.
2. JOINT COMMISSIONER OF COMMERCIAL TAXES,
(VIGILANCE), BENGALURU,
V.T.K.-2 BUILDING, 3RD FLOOR,
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C/W WP No. 4225 of 2026
HC-KAR
80FT ROAD, RAJENDRANAGARA,
KORAMANGALA, BENGALURU-560047.
3. JOINT COMMISSIONER OF COMMERCIAL TAXES
(APPEALS-1), BENGALURU,
TTMC, BMTC BUILDING, 2ND FLOOR,
SHANTHINAGAR, BENGALURU-560047.
4. COMMERCIAL TAX OFFICER (VIGILANCE)-32,
BENGALURU,
ROOM NO.606, 6TH FLOOR,
B BLOCK, V.T.K.-2 BUILDING,
RAJENDRANAGARA, KORAMANGALA,
BENGALURU-560047.
5. COMMISSIONER OF COMMERCIAL TAXES,
V.T.K.-2 BULLDING, RAJENDRANAGARA,
KORAMANGALA, BENGALURU-560047.
...RESPONDENTS
(BY SRI. K. HEMAKUMAR, AGA FOR R1 TO R5)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF
CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR
DIRECTION, QUASHING THE STAY ORDER DATED 30.01.2026
PASSED BY THE RESPONDENT NO.1 UNDER SECTION 108(1)
OF THE ACT BEARING NO.SMR-1/GST/BNG/STAY/2025-26
ENCLOSED HEREIN AS ANNEXURE K AND ETC.,
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WP No. 4273 of 2026
C/W WP No. 4225 of 2026
HC-KAR
IN WP NO. 4225/2026
BETWEEN:
1. M/S. S P METALS,
NO.7, 8 SRIGANDHAKAVALU,
YASHWANTHAPURA HOBLI,
BENGALURU-560091,
REPRESENTED BY ITS PROPRIETOR
SRI. SARAVANAN S/O SRINIVASAN A.,
AGED ABOUT 45 YEARS.
...PETITIONER
(BY SRI. SHREEHARI, ADVOCATE)
AND:
1. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES,
(SMR)-1, BENGALURU,
7TH FLOOR, VANIJYA THERIGE KARYALAYA- 1,
KALIDASA MARG, 1ST MAIN,
GANDHINAGAR, BENGALURU - 560009.
2. JOINT COMMISSIONER OF COMMERCIAL TAXES,
(VIGILANCE), BENGALURU,
V.T.K.-2 BUILDING, 3RD FLOOR,
80FT ROAD, RAJENDRANAGARA,
KORAMANGALA, BENGALURU-560047.
3. JOINT COMMISSIONER OF COMMERCIAL TAXES
(APPEALS-1), BENGALURU,
TTMC, BMTC BUILDING, 2ND FLOOR,
SHANTHINAGAR, BENGALURU-560047.
4. COMMERCIAL TAX OFFICER (VIGILANCE)-32,
BENGALURU,
ROOM NO.606, 6TH FLOOR,
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HC-KAR
B BLOCK, V.T.K.-2 BUILDING,
RAJENDRANAGARA, KORAMANGALA,
BENGALURU-560047.
5. COMMISSIONER OF COMMERCIAL TAXES,
V.T.K.-2 BULLDING, RAJENDRANAGARA,
KORAMANGALA,
BENGALURU-560047.
...RESPONDENTS
(BY SRI. K. HEMAKUMAR, AGA FOR R1 TO R5)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT
OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT,
ORDER OR DIRECTION, QUASHING THE STAY ORDER
DATED 30.01.2026 PASSED BY THE RESPONDENT NO.1
UNDER SECTION 108(1) OF THE ACT BEARING NO.SMR-
1/GST/BNG/STAY/2025-26 ENCLOSED HEREIN AS
ANNEXURE K AND ETC.,
THESE PETITIONS, COMING ON FOR FRESH MATTERS,
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
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WP No. 4273 of 2026
C/W WP No. 4225 of 2026
HC-KAR
ORAL ORDER
In W.P.No.4225/2026, the petitioner has sought
for setting aside of the order at Annexure-K. The order at
Annexure-K is the order staying the order of the appellate
authority dated 28.01.2026. It is noticed that the order
passed under Section 130 of the Central Goods and
Services Tax Act, 2017 (for short 'the Act') came to be
challenged before the first appellate authority and the first
appellate authority had allowed the appeal in part in
favour of the petitioner herein. Such order of the appellate
authority was subject matter of the revisional proceedings
under Section 108 and the order of appellate authority
came to be stayed as per the order at Annexure-K.
2. Learned counsel for the petitioner submits that
in terms of the order of the first appellate authority, the
order passed under Section 130, came to be set aside and
the first appellate authority had modified the Order-in-
Original by upholding the order passed under Section
129(1)(a). It is submitted that insofar as the order of the
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first appellate authority, levying 200% of tax as penalty,
petitioner has satisfied the same. It is further submitted
that insofar as the Order-in-Revision, appropriate
proceedings has been taken by challenging the same in
the present Writ Petition No.4225/2026.
3. Learned counsel for the petitioner would submit
that the goods and conveyance may be released, taking
note that the liability imposed by virtue of the first
appellate order of 200% of tax has been satisfied.
4. Learned Additional Government Advocate
submits that on previous occasions as well, the petitioner
had suffered certain demands that were raised by the
Department after having noticed certain lapse and
discrepancies, petitioner needs to be put on terms to
ensure that in the event that the Revisional proceedings
culminate in an order in favour of the revenue and the
order under Section 130 is revived, the revenue is
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required to have certain assets or security in order to
recover and enforce the order to be passed.
5. However, taking note that the very revision
proceedings is still to be concluded and in terms of the
order of the first appellate authority, petitioner has
satisfied the same, it would be appropriate to put the
petitioner on terms regarding his request for release of
goods and conveyance.
6. In light of petitioner having satisfied the
demand in terms of the first appellate authority, the
revenue is directed to release goods and conveyance. The
petitioner is to furnish an indemnity bond so as to meet
any liability to the department in the event Revisional
proceedings culminate in an order in favour of the revenue
and order under Section 130 of the Act, stands revived.
7. The affidavit filed by the petitioner is taken on
record. The undertaking by the petitioner in the affidavit is
also noted. It is made clear that the petitioner is required
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to abide by the final directions that may be issued in the
Revisional proceedings and any breach of undertaking
would be construed to be an act of contempt.
8. Insofar as the challenge made to the Revisional
Order, all contentions of the petitioner are kept open to be
raised before the Revisional Authority.
9. Insofar as W.P.No.4273/2026, the petitioner
has sought for stay of the order dated 30.01.2026 passed
by the Revisional Authority under Section 108(1) of the
Act. The Revisional Authority by virtue of the order at
Annexure-K had stayed the order of the appellate
authority dated 28.01.2026. The first appellate authority
had partly allowed the appeal of the petitioner filed
challenging the invocation of Section 130. In terms of the
said order of the appellate authority, the Order-in-Original
came to be modified by modifying the impugned penalty
to an order under Section 129(1)(a) by levy of penalty of
200% of the tax.
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10. The petitioner has satisfied the liability that as
shown in terms of the order of the first appellate authority.
Taking note that the petitioner had succeeded in the first
appeal proceedings and has satisfied the liability and
taking note of the affidavit filed referred to in the order
passed above, it would be appropriate to dispose of the
present Writ Petition directing for release of all goods and
conveyance.
11. The petitioner to file an indemnity bond to the
revenue at the time of release of the goods and
conveyance. It is made clear that the undertaking made in
the affidavit would be binding on the petitioner and any
breach of undertaking would be construed to be an act of
contempt.
12. All contentions raised regarding the Revisional
proceedings are kept open to be raised before the
authority. The petitioner relating to proceedings pending in
both the writ petitions referred to above, is to appear
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before respondent No.1 without further notice on
16.04.2026.
13. In terms of the above, both the petitions are
disposed of. All contentions are kept open in both
matters.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
