M/S Sanjana Enterprises v. The Commercial Tax Officer Sgsto-171, Tiptur

e -e1e-eeeee e e NC:(2026:KHC:33979( WP(No.(19692(of(2026( ( , ,,HC-KAR( e ( ( e INATHEAHIGHACOURTAOFAKARNATAKAAATABENGALURUA e THDATEDATHISATHEA7 ADAYAOFAJULYA2026A e BEFOREAe e THEAHON'BLEAMR.AJUSTICEABAMASHYAMAPRASADA e WRITAPETITIONANO.A19692AOFA2026A(T-RES)A e A e BETWEEN:AA e A - M/S-SANJANA-ENTERPRISES-e PROPRIETORSHIP-e REPRESENTED-BY-PROPRIETOR-e SMT.-SHRUTHI-K-B-W/O-MOHAN-KUMAR-S-R-e AGED-ABOUT-37-YEARS-e HAVING-REGISTERED-ADDRESS-e ASSESMENT-NO-1198/622,-- OPP-BDO-OFFICE-e DG-ROAD,-TURUEVEKERE,-TUMAKURU,- e KARNATAKA-572-227.- Digitallye - signedtiby -VANAMALA …PETITIONER-N e Location: (BY-SRI.-AJAY-KUMAR-N.,-ADVOCATE)- HIGH ACOURT0OF KARNATAKA AND:A A

1.-THE-COMMERCIAL-TAX-OFFICER--SGSTO-171,-TIPTUR-OPPOSITE-TO-KALPATARU-COLLEGE,--B.H-ROAD-TIPTUR-572-201--

2.-THE-JOINT-COMMISSIONER-OF--e e -e2e-eeeee e e NC:(2026:KHC:33979( WP(No.(19692(of(2026( ( , ,,HC-KAR( ( ( COMMERCIAL-TAXES-(ADMN),-DGSTO-6-RD TH3 -FLOOR,-KIADB-BUILDING,-14 -CROSS--NDPEENYA-2 -STAGE,--BENGALURU-560-058.--

3.-THE-COMMISSIONER-OF-COMMERCIAL-TAXES-VANIJYA-THERIGE-KARYALAYA-1,--ST1 -FLOOR,-GANDHINAGAR,--BENGALURU-560009.---…RESPONDENTS-(BY-SRI.K.-HEMA-KUMAR.,-AGA)---THIS-WP-IS-FILED-UNDER-ARTICLES-226-AND-227-OF-THE-CONSTITUTION-OF-INDIA-PRAYING-TO----------------------A.-QUASHING-AND-SETTING-ASIDE-THE-PRE-INTIMATION-NOTICE-BEARING-NO.-CTO/SGSTO-171/TPR/DRC--01A/24-25DATED-19.11.2024-ALONG-WITH-SUMMARY-IN-FORM-GST-DRC-01A-BEARING-REFERENCE-NO.-ZD2911240827909-ISSUED-BY-RESPONDENT-NO.1UNDER-SECTION-73(5)-OF-THE-CGST/KGST-ACT-2017-WHICH-IS-PRODUCED-AT-ANNEXURE-B;-(B)-QUASHING-AND-SETTING-ASIDE-THE-SHOW-CAUSE-NOTICE-DATED-26.11.2024-BEARING-NO.-CTO/SGSTO-171/TPR/DRC-01/24-25-UNDER-SECTION-73-OF-THE-CGST/KGST-ACT,-2017-ALONG-WITH-SUMMARY-IN-FORM-GST-DRC-01-DATED-26.11.2024-BEARING-REFERENCE-NO.-ZD291124136525F--ISSUED-BY-RESPONDENT-NO.1,-WHICH-IS-AT-ANNEXURE-C;------------

(C)- QUASHING-AND-SETTING-ASIDE-THE-ORDER-IN-e

ORIGINAL BEARING NO. CTO/SGSTO-171/TPR/DRC-07/MNRG/T. NO. /2024-25 DATED 25.02.2025 ALONG WITH SUMMARY OF ORDER IN FORM GST DRC-07 BEARING REFERENCE NO. ZD2902251109748 DATED

27.02.2025. PASSED BY RESPONDENT NO.1, WHICH IS AT ANNEXURE-D; (D) DIRECTION REMANDING THE MATTER TO RESPONDENT NO.1 TO THE STAGE OF REPLY TO THE SHOW CAUSE NOTICE, LEAVING ALL RIGHTS AND CONTENTIONS OF THE PARTIES EXPRESSLY OPEN, AND THEREAFTER DIRECT RESPONDENT NO.1 TO PROCEED AFRESH IN ACCORDANCE WITH LAW AFTER AFFORDING THE PETITIONER A FULL, FAIR AND EFFECTIVE OPPORTUNITY OF FILING OBJECTIONS AND BEING HEARD IN THE MATTER.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner's grievance is with the Adjudication Order dated 25.02.2025 [Annexure-D]. Sri Ajay Kumar N., the learned counsel for the petitioner, argues for this Court's interference with

this Adjudication Order and subsequent proceedings contending that the proceedings are initiated based on verification of certain transactions on the website maintained by a third-party entity and that cannot be a reason to commence proceedings against the petitioner. The learned counsel argues that notwithstanding this ground, the petitioner, if extended with another opportunity, would produce material to justify the declarations in Form GSTR-3B.

¶2Sri K. Hema Kumar, the learned Additional Government Advocate who accepts notice for the respondents, points out that the proceedings are initiated because transactions of outward supply to different Grama Panchayats are not declared in Form GSTR-3B and that though the petitioner has not responded to the intimation in GST DRC - O1A, the petitioner's representative has filed reply when the show cause notice is issued in GST DRC-01. The

learned Additional Government Advocate argues that the Adjudicating Officer has rightly not accepted the reply and the documents because they are related to different outward supplies and not to the outward supplies mentioned in both the Intimation in GST DRC -O1A and the show cause notice in GST DRC -

01.

¶3The material parts of the Adjudication Order in these regards are as follows:

"On verification of Mahatma Gandhi National Rural Employment Guarantee Act [MGREGA] Website, that is mnregaweb2.nic.in, it is noticed that, the taxable person has effected outward supply of goods material like sand and soil, boulders, Cement, jelly, Gravel, Bricks, Iron and Seel, Pipes paint etc., to various Grama Panchayats as depicted in the chart below under MGNREGA Scheme for tax periods from April – 2020 to March 21. But on verification of GST Prime and BOWEB, it is noticed that, the taxable person has not declared the said turnover of material supply in GSTR 3B returns and failed to discharge the applicable taxes and thereby

contravened the provisions of section 39 read with section 37 of the KGST Act, 2017. The details of goods supplied to various Grama Panchayats are under:

…….In response to the show cause notice, the taxpayer filed a reply and submitted that the Tax already been paid on MGNREGA. But on verification of the details submitted, the taxpayer is engaged in Trading of stationary items and has issued tax invoices for the said items in the period 2020-21. Further, the taxpayer has issued invoices pertaining to stationary items to various panchayaths which do not amount to material supply to MGNREGA scheme. Thus, the request of the taxpayer is hereby rejected, and the Show Cause Notice is confirmed as order u/s.73 of the CGST/KGST Act, 2017 as under:……….."

Sri Ajay Kumar N. submits that his definite instructions are that none from the petitioner has filed any response to the show cause notice in GST DRC-01. Year District Taluk Name GSTIN AMOUNT 2020-TUMAKURU TIPTUR SANJANA ENTERPRISES 29INAPS544 7C1ZP 2166863

¶4This Court must observe from the above extracted portion that if proceedings are initiated on the ground that the outward supply is of building materials, the response is based on invoices relating to stationery items which the petitioner disowns. There could be an error in referring to the invoices relating to stationery items, and this Court is of the view that the petitioner must have another opportunity to produce all documents and raise additional grounds, but the petitioner must be put on terms. In the light of the afore, the following: ORDER The petition is allowed and the Adjudication Order dated

25.02.2025 [Annexure-D] is quashed subject to the following terms.

[A] The proceedings under the Intimation dated

19.11.2024

[Annexure-B] and the Show Cause Notice dated 26.11.2024 [Annexure-C] are restored to the first respondent for due consideration.

[B] The petitioner is permitted to file, along with a certified copy of this Order, the copies of the documents in response to the Show Cause Notice dated

26.11.2024 [Annexure-C].

[C] The petitioner shall produce these documents by

20.08.2026 and the first respondent shall consider these documents and then conclude

the proceedings by a reasoned order.

Sd/- (B M SHYAM PRASAD) JUDGE

SA Ct:sr