M/S. M B S Traders v. Assistant Commissioner of Commercial Taxes (Enforcement)

e -e1e-eeeee e e NC:(2026:KHC:11847 WP(No.(1436(of(2026 IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(25 (DAY(OF(FEBRUARY,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(S(SUNIL(DUTT(YADAV( WRIT(PETITION(NO.(1436(OF(2026((T-RES) BETWEEN:(

1., M/S.,M,B,S,TRADERS, SURVEY,NO.173,,CHELUR,ROAD,,, CHINTAMANI,,CHIKPAL, KARNATAKA,-,563,125., A,SOLE,PROPRIETORSHIP, REPRESENTED,BY,ITS,PROPRIETOR, ASIF,B,,S/O.,BABU,,, AGED,ABOUT,33,YEARS,, RESIDING,AT,WARD,NO.,3,,, VENKATAGIRI,KOTE,,, CHINTAMANI,,CHIKKALLAPUR,,, KARNATAKA,-,563,125,Digitally signedtiby VIDYA0G0R Location: 2., SRI,SYED,MUJAHID,PASHA,, HIGH0COURT OF S/O,GHOSUE,SAB,,, KARNATAKA AGED,ABOUT,46,YEARS,, OWNER,OF,THE,CONVEYANCE,, NO:,KA,07A7864,, RESIDING,AT:,GHOUSE,SAB,,WARD,NO.28,, MAHBOOB,NAGARA,, CHINTAMANI,,CHIKKABALLAPUR,,, KARNATAKA,-,563,125., …,PETITIONERS, (BY,SRI.,BHAGAVATH,P.,,ADVOCATE), e -e2e-eeeee e e NC:(2026:KHC:11847 WP(No.(1436(of(2026 AND:

1., ASSISTANT,COMMISSIONER,OF,, COMMERCIAL,TAXES,(ENFORCEMENT), KIADB,INDUSTRIAL,AREA,,, B.B.,ROAD,,CHIKKABALLAPUR,, KARNATAKA,-,562,101., …,RESPONDENT, (BY,SRI.,HEMAKUMAR,K.,,AGA), , THIS,W.P.,IS,FILED,UNDER,ARTICLES,226,AND,227,OF, THE, CONSTITUTION,OF, INDIA,,PRAYING,TO,DECLARING, THE, ACTION,OF,THE,RESPONDENT,IN,CONFISCATING,THE,GOODS, AND,CONVEYANCE,VIDE,IMPUGNED,ORDER,BEARING,FILE,NO., ACCT(ENF)/CBPUR/MVS/GST/MOV/55/2025-26, DATED,

11.12.2025, (ANNEXED, HERETO, AS, ANNEXURE-A), AS, VOID,, ARBITRARY,, ILLEGAL,, WITHOUT, JURISDICTION,, AND, IN, VIOLATION,OF,THE,PRINCIPLES,OF,NATURAL,JUSTICE,,AND,AS, BEING,VIOLATIVE,OF,ARTICLES,14,,19(1)(G),,AND,265,OF,THE, CONSTITUTION, OF, INDIA,, AND, CONSEQUENTLY, TO, QUASH, AND,SET,ASIDE,THE,SAME,,AND,TO,PASS,SUCH,FURTHER,OR, OTHER, ORDER(S), AS, THIS, HON'BLE, COURT, MAY, DEEM, FIT, AND, PROPER, IN, THE, FACTS, AND, CIRCUMSTANCES, OF, THE, CASE,, IN, THE, INTEREST, OF, JUSTICE, IN, SO, FAR, AS, PETITIONER,CONCERNED,AND,ETC., , THIS,PETITION,COMING,ON,FOR,FRESH,MATTERS,LIST,, THIS,DAY,,ORDER,WAS,MADE,THEREIN,AS,UNDER:, CORAM:, HON'BLE,MR.,JUSTICE,S,SUNIL,DUTT,YADAV

ORAL ORDER

The petitioner has called in question the validity of the order at Annexure-H dated 11.12.2025. Annexure-A is the order of confiscation of goods and conveyance and demand of fine and penalty dated 05.01.2026.

¶2The petitioner has raised various contentions including procedural violations.

¶3Learned counsel would submit that detailed findings made in the context of grounds raised are factual in nature and raises a mixed question of fact and law and that appropriate remedy for the petitioner would be to challenge the order at Annexure-A before the Appellate Authority under Section 107 of the Act.

¶4Though the petitioner has raised certain procedural violations, however the adjudication as reflected in the order is a mixed question of fact and law,

it would be appropriate for the petitioner to avail of the statutory remedy to challenge the order art Annexure-A.

¶5However, in light of request of the petitioner for release of conveyance and goods and taking note of the interim orders passed in certain writ petitions filed relating to challenging the confiscation order under Section 130, it would be appropriate to release the conveyance and goods on terms while stipulating that such release would be subject to final orders to be passed in the appeal to be filed by the petitioner.

¶6While this court relegates the petitioner to avail of such statutory remedy, however for release of goods and conveyance, the following order is passed.

i) The petitioner to pay 25% of the amount as determined in the order at Annexure-A as regards the value of the goods.

ii) The petitioner to furnish bank guarantee for 75% of the value as determined in the order of confiscation.

¶7The goods and conveyance would be released on petitioner making payment and furnishing bank guarantee in terms of the directions made above.

¶8Insofar as substantive legal challenge to the order at Annexure-A, which the petitioner intends to continue, if the appeal were to be filed by the petitioner within a period of two weeks from the date of receipt of certified copy of the order, the same may be taken up by the Appellate Authority without raising any objections on the point of limitation. Such order is passed taking note of pendency of matter before this court. The Appellate Authority may accept the appeal if filed physically/ manually as it is submitted that the petitioner may not be in a position to file the appeal in digital more as orders and show-cause notice have not been uploaded in the portal. All contentions are kept open. Sd/- (S SUNIL DUTT YADAV) JUDGE NP