- 1 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19927 OF 2025 (T-RES) BETWEEN: 1. M/S VISHWAS CONCRETE PRODUCTS PRIVATE LIMITED (A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) REPRESENTED BY ITS MANAGING DIRECTOR SRI. B.R. VISHWAS AGED ABOUT 45 YEARS NO.80/85, 3RD MAIN ROAD NEW THARAGUPET, BANGALORE-560 002. …PETITIONER (BY SRI. RAGHAVENDRA B. HANJER, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE VIDHANA SOUDHA, AMBEDKAR VEEDHI BANGALORE-560001. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) - 3.3, DGSTO-3 ROOM NO.241, BMTC BUILDING SHANTI NAGAR, BANGALORE-560 027. Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 3. M/S ACC LIMITED (A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) REPRESENTED BY ITS AUTHORIZED SIGNATORY 003A,121,THE ESTATE GROUND FLOOR, DICKENSON ROAD BANGALORE-560 042. 4. M/S SRI. BALAJI CEMENT AND STEEL SUPPLY REPRESENTED BY ITS PROPRIETORSHIP CONCERN MUNICIPAL NO.116, 117, 118/2 UNIT NO.902, PRIDE HULKUL 9TH FLOOR, LALBAGH FORT ROAD BANGALORE-560 027. 5. SHRI CHENNAI MINES REPRESENTED BY ITS PROPRIETOR PARTNERSHIP CONCERN OLD NO.29, NEW NO.5 RAMESH NAGAR, WEST TAMBARAM TAMIL NADU-600 045. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE THAT THE PETITIONER IS ENTITLED FOR INPUT TAX CREDIT OF RS. 1,48,66,688/- AS CLAIMED IN THE RECTIFICATION APPLICATION DATED 27.02.2025 (ANNEXURE-X) FILED IN TERMS OF THE AMENDED SECTION 16(5) OF THE CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND CONSEQUENTLY, ENTITLED FOR THE BENEFIT OF AMNESTY SCHEME IN TERMS OF SECTION 128A OF THE CENTRAL GOODS AND SERVICE TAX ACT, 2017 INSERTED THROUGH SECTION 146 OF THE FINANCE (NO.2) ACT, 2024 AND NOTIFICATION NO.21/2024 CENTRAL TAX DATED 08.10.2024 (ANNEXURE-Z) AND ETC. - 3 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: "a. Issue a writ, order or direction in the nature of any writ declaring that the petitioner is entitled for Input Tax Credit of Rs.1,48,66,688/- as claimed in the rectification application dated 27.02.2025 (Annexure-'X') filed in terms of the amended Section 16(5) of the Central Goods and Service Tax Act, 2017 and consequently, entitled for the benefit of Amnesty Scheme in terms of Section 128A of the Central Goods and Service Tax Act, 2017 inserted through Section 146 of the Finance (No.2) Act, 2024 and Notification No.21/2024 - Central Tax dated 08.10.2024 (Annexure - Z). b. Issue a writ, order or direction in the nature of Certiorari by quashing the impugned the Show Cause Notice bearing Case ID No.ADJU-242/2023-24 a/w Summary of the Show Cause Notice bearing Reference No.MA2910230407435 issued in FORM GST DRC - 01 dated 11.10.2023 (Annexure - 'A'), the Order of Adjudication bearing Reference No.MA290124245789F dated 30.01.2024 a/w Summary of the Order bearing Reference No.ZD2901240636690 dated 31.01.2024 issued in FORM GST DRC - 07 (Annexure-B1, B2) the Rectification Order - 4 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 No.DCCT(Audit)-3.3/DGSTO-3/24-25 dated 26.03.2025 (Annexure-'C') and the Notices to a third person under Section 79(1)(c) of the KGST & CGST Act, 2017 bearing No.DCCT (Audit) - 3.3/T.No.19/2025-26 all dated 16.05.2025 issued in FORM GST DRC - 13 (Annexure - 'D1' to 'D3') passed by the 2nd Respondent; c. Issue a writ or order or direction in the nature of any writ by setting aside the GST demand of Rs.2,70,78,812/- along with interest of Rs.2,40,87,286/- and also penalty of Rs.27,07,880/- confirmed in the impugned Order of Adjudication bearing Reference No.MA290124245789F dated 30.01.2024 a/w Summary of the Order bearing Reference No:ZD2901240636690 dated 31.01.2024 issued in FORM GST DRC - 07 (Annexures-B1, B2) by the 2nd Respondent; d. Pass such other orders/directions as may be deemed fit and proper in the facts and circumstances of the case in the interest of justice." 2. A perusal of the material on record would indicate that the petitioner being aggrieved by an adjudication order dated 31.01.2024 passed by respondent No.2 for the tax period 2018-19 filed a rectification application dated 03.03.2025, which came to be rejected vide order dated 26.03.2025 at Annexure-C, aggrieved by - 5 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 which, the petitioner is before this Court seeking the aforesaid reliefs. 3. In this context, it is pertinent to extract the impugned Rectification Rejection Order dated 26.03.2025 vide Annexure-C, which reads as under; "REJECTION ORDER Sub: Rectification Application of Adjudication order dated 31-01-2024 passed under GST Act 2017 for the year 2018-19. Ref: Your Application for Rectification of Orders ARN:AD290325005641B dated 03-03-2025. ** Please take noticed that you are a registered taxpayer on the files of this office under the GST Act 2017. For the tax period 2018-19, this office has passed an order of adjudication under section 73 of the KGST/CGST, Act 2017 and DRC-07 was issued to you. In response to the aforesaid order of adjudication, you have submitted a rectification application in this office on 03-03- 2025 and requested to rectify the order of adjudication dated 31- 01-2024 and pass the necessary order for the aforesaid tax period. Accordingly, the aforesaid rectification letter is verified in detail with reference of the order of adjudication passed and it is found to be not acceptable, since the same does not qualify the conditions prescribed under section 161 of the KGST/CGST Act 2017. Therefore, the Rectification application filed is not in accordance with law and the same is hereby rejected." - 6 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 4. A perusal of the impugned Rectification Rejection Order would indicate that the same is a cryptic, non-speaking and un-reasoned order without assigning any reasons as to why the request of the petitioner was being rejected and the impugned order suffers from the guise of non-application of mind, thereby violating principles of natural justice, warranting interference by this Court in the present petition. In the result, I proceed to pass the following; ORDER (i) The petition is hereby allowed. (ii) The impugned Rejection Order No. DCCT(Audit)- 3.3/DGSTO-3/24-25 at Annexure-C dated 26.03.2025 is hereby set-aside. (iii) The impugned notices at Annexures-D1, D2 and D3 all dated 16.05.2025 are hereby quashed. (iv) The matter is remitted back to respondent No.2 for reconsideration of the Rectification Application filed by the petitioner afresh in accordance with law. - 7 - HC-KAR NC: 2025:KHC:50447 WP No. 19927 of 2025 (v) The petitioner shall appear before respondent No.2 on 15.12.2025 without awaiting further notice. (vi) Liberty is reserved in favour of the petitioner to file pleadings documents etc., which shall be considered by respondent No.2, who shall provide sufficient and reasonable opportunity to the petitioner and pass speaking order in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE NBM List No.: 2 Sl No.: 4