- 1 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 19TH DAY OF JANUARY 2026 BEFORE THE HON'BLE MRS JUSTICE K.S.HEMALEKHA WRIT PETITION NO. 105452 OF 2025 (T-RES) BETWEEN: M/S HIND METALS INDUSTRIAL ESTATES CITB PLOT NO.39, RAVINAGAR, 5TH CROSS, FIRST FLOOR, GOKUL ROAD, HUBLI, DHARWAD DIST: 580030, GST NO. 29AFUPA9806RIZE PROPRIETARY CONCERN, REPRESENTED BY ITS PROPRIETOR, MR. R. SIKANDAR BASHA. …PETITIONER (BY SMT. VEENA J.KAMATH, ADVOCATE (THROUGH VC)) AND: 1. JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEALS) DHARWAD DIVISION, VTK BUILDING, NAVANAGAR, HUBBALI, DHARWAD DIST: 580025. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (ENFORCEMENT)-3, VTK BUILDING, NAVANAGAR, HUBBALLI, DHARWAD DIST: 580025. …RESPONDENTS (BY SRI. PRAVEEN K.UPPAR, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 19.03.2025 BEARING APPEAL NO. APL/GST- 286/2024-25 UNDER SECTION 107(11) OF THE GST ACT, 2017 PASSED BY THE 1ST RESPONDENT AT ANNEXURE-A, AND ALSO THE ORDER DATED 30.07.2024 IN FORM DRC-07 BEARING REFERENCE NO. ACCT/ENF-3/HUBBALLI/2024-25 OF THE 2ND RESPONDENT UNDER SECTION 74(9) AND 74(10) OF THE GST ACT AS PER ANNEXURE-A1 BY ISSUING A WRIT OF CERTIORARI OR ANY OTHER ORDER IN THE NATURE A WRIT OF CERTIORARI AND ETC. MANJANNA E Digitally signed by MANJANNA E Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2026.01.29 10:13:33 +0530 - 2 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA ORAL ORDER Petitioner-M/s. Hind Metals have approached this Court challenging: i) appellate order dated 19.03.2025 passed by the Joint Commissioner under Section 107(11) of the Karnataka Goods Services Tax Act, 2017 (for short, ‘KGST Act’) and ii) the adjudication order dated 30.07.2024 passed by the Assistant Commissioner under Sections 74(9) and 74(10) of the KGST Act, whereby the Income Tax Credit (for short, ‘ITC’) was disallowed and differential tax, interest and penalty were levied. 2. Brief facts; The petitioner is a registered GST dealer, engaged in the business of scrap and copper wastage. Inspections were - 3 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 held alleging that certain suppliers were “bogus, non- existing” leading to a proceedings under Section 74 of the KGST Act. Show-cause notice was issued, to which the petitioner replied asserting genuine purchases with valid invoices, weigh bills, receipt of goods and banking payments. It is stated that the adjudicating authority confirmed demand on 30.07.2024 and the statutory appeal was dismissed on 19.03.2025. 3. Learned counsel for the petitioner submits that the appellate authority has failed to discharge its statutory obligation under Section 107 of the KGST Act in as much as the appeal has been dismissed without consideration of the written submission and documents placed on record. It is submitted that Section 107(11) read with 107(12) of the KGST Act mandates a reasoned order, framing points for consideration and recording findings thereon which is conspicuously absent in the impugned appellate order. 4. Learned counsel further submits that the appellate authority has proceeded on an erroneous - 4 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 assumption that the petitioner neither appeared nor filed written arguments, whereas the records demonstrates otherwise. The impugned order, therefore suffers from non application of mind and violation of principles of natural justice. 5. Per contra, learned Additional Government Advocate appearing for the respondents-State sought to justify the impugned order and contended that adequate opportunity was accorded to the petitioner and that in the absence of effective participation, the appellate authority was justified in confirming the adjudication order. 6. This Court has carefully considered the contention urged and perused the impugned appellate order dated 19.03.2025 passed by the Joint Commissioner of Commercial Taxes, Dharwad Division. Though, the appellate authority records that an opportunity of hearing was granted, the order proceeds on an erroneous premise that - 5 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 the appellant had neither appeared nor filed their written arguments. 7. The material on record clearly discloses that the appellant had placed written arguments and documentary material in support of it’s case and the same had been acknowledged by the authority. Section 107(11) of the KGST Act mandates that the appellate authority to independently examine the appeal on merits, and Section 107(12) of the KGST Act mandates the appellate order shall be in writing, stating the point for consideration, the decision thereon and the reasons for such decision. The impugned order has not satisfied these statutory requirements. 8. The appellate order is thus a non speaking order passed without independent application of mind to the grounds urged in the appeal. Accordingly, this Court pass the following; - 6 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 ORDER i) The Writ Petition is allowed in part. ii) The impugned order dated 19.03.2025 passed by the Joint Commissioner of Commercial Taxes, Dharwad Division, is hereby set aside. iii) The matter is remitted back to the respondent No.1 for fresh consideration on merits in accordance with law, after affording the petitioner a reasonable opportunity of hearing. iv) The petitioner shall appear before the respondent No.1 on 09.02.2026. v) All contentions of both parties are kept open. vi) The respondent No.1 shall conclude the proceedings as expeditiously as - 7 - HC-KAR NC: 2026:KHC-D:491 WP No. 105452 of 2025 possible not more than a period of six [6] weeks. vii) The petitioner is also at liberty to file additional documents in support of their contentions, if any. Sd/- JUSTICE K.S.HEMALEKHA PJ/ Ct:VH List No.: 1 Sl No.: 6