- 1 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 8083 OF 2026 (T-RES) BETWEEN: M/S. AUDIO ZONE, A PROPRIETARY CONCERN, REPRESENTED HEREIN BY ITS PROPRIETOR, SHRI. S. LOHITH KUMAR, RESIDING AT NO.202, 2ND FLOOR, SURYA KIRAN APARTMENTS, 6TH MAIN, 5TH CROSS, NANDKUMAR LAYOUT, SUBRAMANYAPURA, BENGALURU, KARNATAKA - 560061. HAVING ITS REGISTERED OFFICE AT SURVEY NO.35/2, SRIGANDHAKAVALU PAPAREDDY PALYA, NAGARBHAVI 2ND STAGE, YESHWANTHPUR HOBLI, BENGALURU URBAN - 560 091. …PETITIONER (BY SRI. SANDEEP HUILGOL., ADVOCATE) AND: 1. THE COMMERCIAL TAX OFFICER, LGSTO-81, BANGALORE, OFFICE OF THE ASSISTANT COMMISSIONER OF TAXES, 1ST AND 2ND FLOOR, 4TH PHASE, KIADB BUILDING, 14TH CROSS, PEENYA 2ND STAGE, BENGALURU-560 058. Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 2. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, REPRESENTED HEREIN BY THE CHAIRMAN, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110001. 3. THE GOODS AND SERVICES TAX COUNCIL, REPRESENTED HEREIN BY THE CHAIRPERSON, 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110 001. 4. THE UNION OF INDIA, REPRESENTED HEREIN BY THE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110 001. 5. THE STATE OF KARNATAKA, REPRESENTED HEREIN BY THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, GOVERNMENT OF KARNATAKA, VIDHANA SOUDHA, BENGALURU - 560 001. …RESPONDENTS (BY SRI. K. HEMAKUMAR, AGA R1 TO R5) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 23.08.2024 BEARING NO.CTO/LGSTO-81/ADJ- - 3 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 26/2024-25 PASSED BY THE 1ST RESPONDENT UNDER SECTION 73(9) OF THE CENTRAL/KARNATAKA GOODS AND SERVICES TAX ACT, 2017 FOR THE TAX PERIODS APRIL 2019 TO MARCH 2020 (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 SUNIL DUTT YADAV ORAL ORDER Sri. K. Hemakumar, learned Additional Government Advocate accepts notice for respondent No.1 and 5. Learned counsel Sri. Jeevan J. Neeralgi accepts notice for respondents No.2 to 4. 2. The petitioner has called in question the validity of the order of adjudication passed under Section 73(9) of the Central Goods and Services Tax / Karnataka Goods and Services Tax Act, 2017. 3. It is submitted that the notices were uploaded in the portal of additional tab and not in the regular tab, as - 4 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 a result of which petitioner missed taking note of the notices stated to have been issued. It is further submitted that the matter relates to reconciliation between GSTR-3B and the declaration of supplier in GSTR-2A and the petitioner has material to demonstrate and reconcile the discrepancy noticed. 4. Sri. K. Hemakumar, learned Additional Government Advocate submits that the order is passed on 23.08.2024 and the petitioner has slept over the matter. 5. However, having noticed that the order passed is an ex-parte order in the absence of any reply by the petitioner to the show-cause notice and taking note of the assertion of the petitioner that they have material to demonstrate the reconciliation between GSTR-3B and declaration of the supplier in GSTR-2A, it would be appropriate to set aside the impugned order of adjudication and remit the matter to the stage of reply to - 5 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 show-cause notice, taking note that the authority did not have the benefit of reply on merits of show-cause notice. 6. Accordingly, the order at Annexures-A and A1 are set aside. Matter is remitted to the stage of reply to show-cause notice. Petitioner to appear before respondent No.1 without further notice on 16.04.2026. In light of setting aside of the impugned order of adjudication, respondent No.1 is directed to rescind the bank attachment forthwith. 7. In light of remanding of the matter for fresh consideration, there is no occasion to enter into the correctness of the notification as assailed in prayer (iv). The petitioner is put on terms and directed to pay 10% of the tax demand. Needless to state, the tax directed to be paid is subject to outcome of the adjudication. 8. I.A.No.1/2026 is allowed and the petitioner is dispensed with production of certified copy of Annexures- - 6 - HC-KAR NC: 2026:KHC:15034 WP No. 8083 of 2026 A, A1, B, B1 and G, in light of the submission that the documents produced are printouts taken from the portal. Accordingly, petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE MCR