- 1 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 05TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 18783 OF 2024 (T-RES) BETWEEN: 1. M/S EQUITY CAPITAL ADVISORS (INDIA) PRIVATE LIMITED CORPORATE OFFICE: NO.430, 3RD FLOOR, 4TH BLOCK, KORAMANGALA BENGALURU - 560 034. A PRIVATE LIMITED CO., REGISTERED U/S 21 OF THE COMPANIES ACT,1956 (A PRIVATE LIMITED CO., REPRESENTED BY SRI. SUBRAMANIAN, CHIEF FINANCE OFFICER AND AUTHORISED SIGNATORY ) …PETITIONER (BY SRI. HARISH NARASAPPA, SR. COUNSEL APPEARING SRI. Y C SHIVAKUMAR, ADVOCATE) AND: 1. THE COMMISSIONER OF COMMERCIAL TAXES KARNATAKA, KALIDASA ROAD, GANDHINAGAR, Digitally signed by SREEDHARAN BANGALORE SUSHMA LAKSHMI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 BENGALURU - 560 009. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT)-19 SOUTH ZONE, ’B’ BLOCK, VTK- 2, ROOM NO. 405, 4TH FLOOR, KORAMANGALA BENGALURU - 560 047. …RESPONDENTS (BY SRI. K HEMAKUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING QUASH THE IMPUGNED ORDER BEARING NO. ADCOM/ENF/SZ/ACCT-19/ADT-09/2023-24 (RFN- MA 290424005837T) DATED 02.04.2024 FOR THE FINANCIAL YEAR 2018-19 AS AT ANNEXURE-A AND ETC., 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, petitioner seeks the following reliefs:- "(a) That this Hon'ble High Court be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorari any other writ, order or direction and calling for the records of the case of the Petitioner and thereafter, quash - 3 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 the Impugned Order bearing No.ADCOM/ENF/SZ/ACCT-19/ADT-09/2023-24 (RFN: MA290424008537T), dated 02-04- 2024, for the year financial 2018-19, as at ANNEXURE-A. (b) a Writ of Certiorari or order or direction in the nature of writ of certiorari holding that the transactions of the Petitioner is exempt under the provisions of the GST Acts; and (c) pass such other order/s as this Hon'ble Court deems fit and proper in the circumstances of the case." 2. Heard learned Senior Counsel for the petitioner and learned Additional Government Advocate for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned Senior Counsel submitted that the petitioner purchased a “going concern” vide Agreement to Sell dated 31.03.2018 from Payism Technologies India Pvt. Ltd., which continued to pay GST until 02.02.2019 and the petitioner started paying GST subsequently. It is submitted that though the petitioner and the previous company had paid the entire GST payable in relation to the financial year - 4 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 2018-19, the respondent No.2 issued the impugned show cause notice, to which the petitioner submitted a detailed reply, despite which, the respondent No.2 proceeded to pass the impugned adjudication order at Annexure-A dated 02.04.2024, which is assailed in the present petition. 3(i) It is also submitted, on instructions, that the Rectification Application filed by the petitioner at Annexure-K has been subsequently withdrawn by the petitioner and as such, the impugned order, without taking into account the returns filed by the previous Company / Payism Technologies India Pvt. Ltd., and the GST already paid by it as well as the returns filed by the petitioner and the GST paid by it, deserves to be set aside. 4. Per contra, learned Additional Government Advocate appearing for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that the respondent No.2 has come to the conclusion that the contentions urged by the petitioner have not been substantiated by it and as such, the petitioner was liable to pay the demand as confirmed in - 5 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 the impugned order. However, the respondent No.2 has failed to consider and appreciate the undisputed material on record, returns and financials of the previous Company / Payism Technologies India Pvt. Ltd., from 01.04.2018 to 02.02.2019 and the returns and the GST paid by the petitioner from for 02.02.2019 and all of which indicate that the entire GST payable by the petitioner as well as the previous Company has been completely paid and discharged by both of them. Under these circumstances, in the absence of any finding recorded by the respondent No.2 with reference to the GST returns and the payments made by the petitioner and the previous Company, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondent No.2 for reconsideration afresh, in accordance with law. 6. In the result, I pass the following:- ORDER (i) The Writ Petition is hereby allowed. (ii) The impugned order at Annexure-A dated 02.04.2024 passed by the respondent No.2 is hereby set aside. (iii) The matter is remitted back to the respondents for reconsideration afresh, in accordance with law. - 6 - HC-KAR NC: 2025:KHC:51177 WP No. 18783 of 2024 (iv) The petitioner shall appear before the respondent No.2 on 12.01.2026, without awaiting further notice from the respondent No.2. (v) Liberty is reserved in favour of the petitioner to produce and submit pleadings, documents etc., which shall be considered by the respondent No.2, who shall provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. (vi) The respondent No.2 shall consider and take into account the GST returns of the petitioner as well as the previous Company / Payism Technologies India Pvt. Ltd., for the financial year 2018-19 as well as the GST payments made by both of them and pass appropriate orders in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE BSS List No.: 2 Sl No.: 3