- 1 - HC-KAR NC: 2025:KHC:53367 WP No. 37645 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.37645 OF 2025 (T-RES) BETWEEN: M/S. S. THARTIUS ENGINEERING CONTRACTORS (THE PARTNERSHIP FIRM. ALSO REGISTERED UNDER THE PROVISION OF CGST/SGST ACT, 2017) NO.5A/195, CALDWELL COLONY, SECOND STREET, TUTICORIN-628 008 (REPRESENTED BY ITS PARTNER SHRI. ADHARIYAN RYBIN THARTIUS S/O S. THARTIUS AGED ABOUT 52 YEARS) …PETITIONER (BY SRI. PRAKASH D., ADVOCATE) AND: 1. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS-2) 2ND FLOOR, ABOVE BMTC BUS STATION, SHANTHI NAGAR, BENGALURU-560 027. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES AUDIT (2.9) DGSTO-2, NO.642, PIONEER PLAZA, KENCHANAHALLI MAIN ROAD, R.R.NAGAR, BENGALURU-560 098. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE BEARING NO. DCCT (AUDIT-2.9)/VAT/RECT/2023-24 DATED 11.10.2023 ISSUED BY RESPONDENT NO. 2 AT ANNEXURE D AND ETC. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:53367 WP No. 37645 of 2025 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “(a) Quashing notice bearing No.DCCT(Audit- 2.9)/VAT/Rect/2023-24 dated 11.10.2023 issued by Respondent No.2 at Annexure-“D”. (b) Quashing the impugned Rectification/SMR Order bearing No.DCCT/(Audit-2.9)/vat/Rect/2023-24 dated: 27.10.2023, issued by Respondent No.2, at Annexure-“E”. (c) Quashing appellate order dated: 28.08.2025 passed in VAT AP 05.23-24(AY-2027-18) by Respondent No.1, at Annexure “F”, (d) Pass such other order or direction as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case, in the interest of justice and equity.” 2. Heard the learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that on 08.07.2021, the respondent No.2 passed a re-assessment order, - 3 - HC-KAR NC: 2025:KHC:53367 WP No. 37645 of 2025 raising a total tax demand of Rs. 83,233/- along with interest and penalty. Thereafter, the respondent formulated / floated Karasamadhana Scheme 2023, in pursuance of which, the petitioner applied for the benefit of the Scheme and was granted the said benefit by the respondents and a waiver order was issued to the petitioner. Subsequently, the respondent No.2 issued notice under section 69(1) proposing rectification and reopening of the petitioner’s case which was settled under Karasamadhana Scheme. Since the petitioner did not reply to the aforesaid notice, the respondent No.2 proceeded to pass the impugned ex-parte order confirming tax liability of Rs.3,04,580 including interest and penalty against the petitioner. Aggrieved by the said order, the petitioner preferred an appeal which was also dismissed vide order dated 28.08.2025 passed by the respondent No.1, which are assailed in the present petition. 4. It is the grievance of the petitioner that despite granting the benefit of the Karasamadana Scheme and extending the waiver in favour of the petitioner, the respondent No.2 issued a rectification notice dated 11.10.2023, purporting to invoke Section 69 of the Karnataka Value Added Tax Act, 2003, to which the - 4 - HC-KAR NC: 2025:KHC:53367 WP No. 37645 of 2025 petitioner due to bonafide reasons could not submitted a reply, subsequent to which, the respondent No.2 passed the impugned rectification order, confirming demand of Input tax credit along with interest and penalty dated 27.10.2023. The appeal filed by the petitioner was also dismissed vide order dated 28.08.2025 aggrieved by which the petitioner is before this Court by way of the present petition. 5. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 6. The issue in controversy between the parties in the present petition as regards the right of the respondents to reopen proceedings which had attained finality under the Karasamadhana Scheme is no longer resintegra, in the light of the following judgments of this Court: i) M/s.Omkar Land Developers Vs. The Additional Commissioner of Commercial Taxes - STA No.8/2025 dated 18.06.2025; ii) M/s.FortiousInfradevelopers LLP Vs. The Additional Commissioner of Commercial Taxes (Zone)-1 and - 5 - HC-KAR NC: 2025:KHC:53367 WP No. 37645 of 2025 Others - STA No.18/2022 and connected matters dated 02.04.2025; and iii) Castles Vista Pvt. Ltd. Vs. The Joint Commissioner of Commercial Taxes (Admn) and Others - W.P.No.687/2025 and connected matters dated 04.09.2025. 7. As stated supra, having granted the benefit of the Karasamadhana Scheme in favour of the petitioner, the respondent No.2 did not have jurisdiction or authority of law to reopen the proceedings and initiate rectification proceedings and consequently, the impugned order deserves to be quashed. 8. In the result, I pass the following: ORDER i) The petition is hereby allowed. ii) The impugned Notice at Annexure – D dated 11.10.2023 issued by respondent No.2; Rectification order dated 27.10.2023 vide Annexure 'E' and the impugned Appeal Order dated 28.08.2025 vide Annexure 'F' are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV; List No.: 2 Sl No.: 44