- 1 - HC-KAR NC: 2025:KHC-D:12984 WP No. 104361 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 23RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 104361 OF 2025 (T-RES) BETWEEN: M/S. S.V. CHETTY IRON ORE MINES, A PROPRIETORSHIP CONCERN, HAVING OFFICE AT OLD INCOME TAX BUILIDNG, NEAR SAHAKARI KALYANAMANTAPA, NEHARU COLONY, HOSPET-583201, REPTD. BY ITS PROPRIETRIX, SMT. GEETHA SRINIVASULU W.O. LATE SRI. S.V. SRINIVASULU, AGED ABOUT 72 YEARS. …PETITIONER (BY SMT. VANI H AND SRI. PRAVEEN TARIKAR, ADVOCATES) AND: 1. THE JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS), DAVANAGERE, DAVANAGERE DIVISION, VANIJYA THERIGE BHAVANA, DEVARAJA URS LAYOUT, DAVANAGERE-577006. 2. THE DEPUTY COMMISSIONER COMMERCIAL TAXES (AUDIT), DAM RAOD, NEHARU COLONY, HOSPET-583 201. …RESPONDENTS (BY SRI. SHARAD V. MAGADUM, AGA FOR R1 TO R2) Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:12984 WP No. 104361 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO (I) ISSUE A WRIT OF CERTIORARI OR WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER BEARING NO. PROCEEDINGS 73 ORDER, 2022-23 T-333 DATED 14.11.2022 ISSUED UNDER SECTION 73(9) OF THE GST ACT BY THE SECOND RESPONDENT FOR THE YEAR 2017-18 VIDE ANNEXURE-C.(II) ISSUE A WRIT OF CERTIORARI OR WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER DATED 7.2.2024 PASSED IN APPEAL NO. KGST/AP-89/2022-23 BY THE FIRST RESPONDENT FOR THE YEAR 2017-18 VIDE ANNEXURE-D(III) ISSUE A WRIT OF MANDAMUS OR A DIRECTION IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENTS TO DROP THE PROCEEDINGS BY FOLLOWING THE ORDER DATED 5.10.2017 PASSED IN IA NOS. 247 AND CONNECTED NUMBERS IN WRIT PETITION (CIVIL) NO. 562/2009 VIDE ANNEXURE F IN RESPECT OF ALL SALES THROUGH THE MONITORING COMMITTEE (MONCOM) AS DIRECT SALES BY PETITIONER DURING THE GST REGIME WITH EFFECT FROM 1.7.2017 AND(IV) TO PASS SUCH OTHER ORDERS OR DIRECTIONS AS DEEMED FIT BY THIS HON BLE COURT IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THERIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner is before this Court seeking for the following reliefs: i. Issue a Writ of Certiorari or writ in the nature of certiorari to quash the impugned order bearing no. Proceedings 73 Order, 2022-23 T-333 dated 14.11.2022 issued under Section 73(9) of the - 3 - HC-KAR NC: 2025:KHC-D:12984 WP No. 104361 of 2025 GST Act by the second respondent for the year 2017-18 vide Annexure-C. ii. Issue a Writ of Certiorari or writ in the nature of certiorari to quash the impugned order dated 7.2.2024 passed in Appeal No. KGST/AP- 89/2022-23 by the first respondent for the year 2017-18 vide Annexure-D. iii. Issue a writ of Mandamus or a direction in the nature of mandamus directing the respondents to drop the proceedings by following the order dated 5.10.2017 passed in IA Nos. 247 and connected numbers in Writ Petition (Civil) No. 562/2009 vide Annexure F in respect of all sales through the monitoring committee (MONCOM) as direct sales by petitioner during the GST regime with effect from 1.7.2017 and iv. To pass such other orders or directions as deemed fit by this Hon’ble Court in the interest of justice and equity. 2. The grievance of the petitioner is that, though initially the turnover was enhanced to ₹3,43,34,860/-, and which when challenged by the petitioner, the First Appellate Authority came to a conclusion that tax would have to be levied on a sum of ₹10,64,92,790/-, which the learned counsel for the petitioner submits is without issuing the show cause notice, and in an appeal which has been filed by the petitioner, the - 4 - HC-KAR NC: 2025:KHC-D:12984 WP No. 104361 of 2025 petitioner has been left in a worse-off position than what the petitioner was, inasmuch as the turnover has increased from ₹3,43,34,860/- to ₹10,64,92,790/-. 3. Accepting the submission of the learned counsel for the petitioner, I am of the considered opinion that the Appellate Authority could not have unilaterally increased the differential turnover to ₹10,64,92,790/- without having issued a show cause notice and providing an opportunity to the petitioner to be heard. 4. In that view of the matter, I pass the following: ORDER i. Writ Petition is allowed. ii. The impugned order dated 07.02.2024, passed by the respondent No.1 in Appeal No.KGST/AP- 89/2022-23 at Annexure-D, is set aside. iii. The matter is remitted to the First Appellate Authority with liberty reserved to the First Appellate Authority to issue show cause notice on the - 5 - HC-KAR NC: 2025:KHC-D:12984 WP No. 104361 of 2025 differential amount of turnover, provide an opportunity to the petitioner to reply to the same, and proceed with the matter thereafter. iv. While doing so, the first Appellate Authority shall also take into consideration the order dated 05.10.2017 passed Writ Petition (Civil) No.562/2009 at Annexure-F, more particularly in I.A.Nos.56590, 72931 and 83141 of 2017. v. The First Appellate Authority is also directed to reconsider the difference between Form GSTR-2A and GSTR-3B on the basis of the invoices submitted with appropriate cogent proof by the petitioner. Sd/- (SURAJ GOVINDARAJ) JUDGE gab CT:PA List No.: 3 Sl No.: 19