- 1 - HC-KAR NC: 2026:KHC:9540 WP No. 1760 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 1760 OF 2025 (T-RES) BETWEEN: 1. M/S MYSORE MERCANTILE CO LTD MYSORE MERCANTILE IS A PRIVATE LTD., COMPANY REGISTERED UNDER COMPANIES ACT HOUSE NO.46 IV FLOOR 36TH CROSS, JAYANAGAR, 4TH T BLOCK, BENGALURU - 560 041 REPRESENTED BY A PARAMESHWARA REDDY DIRECTOR … PETITIONER (BY SRI. CHANDRASHEKARA K., ADVOCATE) AND: 1. THE COMMISSIONER OF COMMERCIAL TAXES VANIJYA THERIGE KARYALAYA, KALIDASA MARG, GANDHINAGAR BANGALORE - 560 009 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 3.2 NO.217, II FLOOR, BMTC BUILDING Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:9540 WP No. 1760 of 2025 SHANTHINAGAR, DGSTO - 03 BANGALORE - 560 027 … RESPONDENTS (BY SRI. HEMAKUMAR, AGA) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO A) SETTING ASIDE THE ORDER-IN-ORIGINAL (ANNEXURE-F) DATED 30/08/2024 ISSUED BY R2 DEMANDING GST AND ITC WITHOUT CONSIDERING THE REPLY AND DOCUMENTS SUBMITTED 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 Petitioner has sought for setting aside of the order dated 30.08.2024 at Annexure-F. 2. Annexure-F is the order of adjudication. Petitioner submits that in reply to the show cause notice, whereby the show cause notice referred to bogus claim of ITC and undeclared taxable turnover as Rs.49 crores, petitioner has made out his reply, despite which the Authority has not properly considered the reply made and has proceeded to uphold the fraudulent claim of ITC and - 3 - HC-KAR NC: 2026:KHC:9540 WP No. 1760 of 2025 undeclared taxable turnover as made out in the show cause notice. 3. Learned counsel for the petitioner submits that the order of adjudication is passed without fully appreciating the material on record and once again if the matter is remitted for reconsideration on the basis of material already produced, the petitioner would be in a position to demonstrate that there are no transactions involving fraudulent claim of ITC and undeclared taxable turnover. 4. Sri. Hemakumar, learned Additional Government Advocate appearing for the State submits that the order reflects application of mind, while it may be open for the Court to pass appropriate orders for reconsideration and the Court may permit the Authorities to pass separate orders for the different financial years. 5. Learned counsel for the petitioner submits that petitioner would not raise any objection for passing of - 4 - HC-KAR NC: 2026:KHC:9540 WP No. 1760 of 2025 separate orders of adjudication for different financial years. 6. In light of the same, the order at Annexure-F is set aside and consequently, the order rejecting the application for rectification at Annexure-H is also set aside. The matter is remitted to the Authority for reconsideration while it is open for respondent No.2 - Authority to pass separate orders for different financial years, while liberty is granted taking note of the stand of both the sides. All contentions on merits are kept open. 7. In light of the above, petition is disposed of. SD/- (S SUNIL DUTT YADAV) JUDGE VP