- 1 - HC-KAR NC: 2025:KHC:54286 WP No. 35946 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 35946 OF 2025 (T-RES) BETWEEN: M/S. AMD APPARELS PVT. LTD., A COMPANY INCORPORATED UNDER COMPANIES ACT, 2013, HAVING ITS UNIT AT PLOT NO.87/4, K.S. BUILDING, MANZIL (BLOCK-A), GROUND FLOOR, NEAR KEERTHI HARMONY, HORAMAVU, RAMAMURTHY NAGAR, BANGALORE 560016. REP ITS DIRECTOR, SHRI SANTHU MOHAMMED AKBAR SYED OLI, AGED ABOUT 47 YEARS. …PETITIONER (BY SRI RAJU H Y, ADVOCATE) AND: 1. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, THROUGH ITS CHAIRMAN, CENTRAL REVENUE BUILDINGS, LP ESTATE, ITO, NEW DELHI 1100002. 2. THE CHIEF COMMISSIONER OF CUSTOMS, BENGALURU CUSTOMS ZONE, C. R. BUILDINGS, QUEENS ROAD, BANGALORE - 560 001. 3. THE COMMISSIONER OF CENTRAL TAX, BENGALURU GST EAST COMMISSIONERATE, 2ND FLOOR, TTMC-BMTC BUS STAND BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU-560 071. 4. THE ASSISTANT COMMISSIONER OF CENTRAL TAX, EAST DIVISION-6, BENGALURU GST EAST Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:54286 WP No. 35946 of 2025 COMMISSIONERATE, 2ND FLOOR, TTMC-BMTC BUS STAND BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU-560 071. …RESPONDENTS (BY SRI ARAVIND V CHAVAN, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE ORDER SL. NO.27/GST/AC/ED6/2025 DATED 12.11.2025 IN FORM-GSTDRC-07 PASSED BY THE 4TH RESPONDENT (ANNEXURE-A); B. SET ASIDE THE DEMAND AND RECOVERY OF ERRONEOUS REFUND OF IGST OF RS. 1,09,00,000/- ORDERED UNDER SECTION 74 OF CGST ACT, 2017 R/W SECTION 20 OF IGST ACT, 2017 WITH INTEREST THEREON UNDER SECTION 50 OF CGST ACT, 2017 ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER 1. In this petition, the petitioner seeks the following reliefs: " WHEREFORE, the petitioner respectfully prays that this Hon'ble Court may please to: a. Issue a writ or order in the nature off certiorari quashing the Order Sl.No.27/GST/AC/ED6/2025 dated 12.11.2025 in FORM- GSTDRC-07 passed by the 4th Respondent (ANNEXURE-A); b. Set aside the demand & recovery of erroneous refund of IGST of Rs.1,09,00,000/- ordered under section 74 of CGST Act, 2017 r/w section 20 of IGST Act, 2017 with interest thereon under section 50 of CGST Act, 2017; c. Set aside the penalty of Rs.1,09,00,000/- imposed under section 74(9) of CSGT Act5, 2017; and d. Pass such other orders as may be deemed appropriate under the circumstances of the case, in the ends of justice. - 3 - HC-KAR NC: 2025:KHC:54286 WP No. 35946 of 2025 2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the order of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. As rightly contended by the learned counsel for the petitioner the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025, the operative portion of which reads as under: - 4 - HC-KAR NC: 2025:KHC:54286 WP No. 35946 of 2025 "11. In view of the aforesaid facts and circumstances and striking down of Rule 96(10) of the CGST Act and the judgments of the Kerala High Court and other High Courts including Bombay High Court in the petitioner’s own case coupled with the fact that respondents themselves have omitted Rule 96(10) vide Notification dated 08.10.2024, I am of the considered opinion that the impugned Show Cause Notice and all further proceedings pursuant thereto deserves to be quashed. 12. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned Show Cause Notice at Annexure – R dated 07.10.2020 issued by respondent No.5 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund IGST amounting to Rs.75,55,123/- along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order.” 6. The aforesaid order is applicable to the facts and circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of this Court in M/s Hikal Limited’s case supra. - 5 - HC-KAR NC: 2025:KHC:54286 WP No. 35946 of 2025 7. In the result, I pass the following: ORDER (i) The petition is allowed and disposed of in terms of the decision of this Court in the case of M/s Hikal Limited Vs. Union of India and others – W.P.No.15251/2020 dated 09.12.2025. (ii) The impugned Show Cause Notice at Annexure – D dated 26.06.2025 issued by respondent No.4 and all further proceedings pursuant thereto are hereby quashed. (iii) Respondent authorities are directed to refund the amount, if any, payable to the petitioner along with applicable interest back to the petitioner as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE tsn*List No.: 2 Sl No.: 68