IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19068 OF 2023 (T-RES)

BETWEEN:

M/S PADMA ENTERPRISE HAVING OFFICE AT DOOR NO. 13-415/A, JODUMARGA, B.C. ROAD, B MOODA, BANTWAL TALUK, DAKSHINA KANNADA - 574 219 REPRESENTED BY ITS PROPRIETOR SRI. AITHAPPA ALVA, S/O. SRI. KOCHANNA ALVA, AGED ABOUT 65 YEARS.

…PETITIONER (BY SMT. VANI H., ADVOCATE)

AND:

1. THE UNION OF INDIA Digitally signed by MINISTRY OF FINANCE DEPARTMENT OF REVENUE, SHARADAVANI B THROUGH ITS SECRETARY (REVENUE), Location: High NORTH BLOCK, Court of NEW DELHI - 110 001.

Karnataka

2. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE (GST WING), REPRESENTED BY ITS SECRETARY, VIDHANA SOUDHA, BANGALORE - 560 001.

3. THE COMMERCIAL TAX OFFICER (AUDIT)

PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK BUILDING, 2^ND FLOOR, B C ROAD, BANTWAL - 574 219.

…RESPONDENTS (BY SRI. JEEVAN J. NEERALGI, ADVOCATE FOR R1 SMT. JYOTI M. MARADI, HCGP FOR R2 AND R3)

***

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND

227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE AUDIT REPORT BEARING NO.CTO(A)/BANTWAL/ GST-83/2023-24 DATED 18.07.2023 ISSUED BY R3 PROPOSING LEVY OF GST AT 18% ON ROYALTY PAID BY PETITIONER FOR THE YEAR APRIL

2019 TO MARCH 2020 VIDE ANNEXURE-A, ETC.

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

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:

"(i) Issue a Writ of Certiorari or a writ in the nature of certiorari to quash the audit report bearing No. CTO(A)/Bantwal/GST-83/2023- 24 dated 18.7.2023 issued by the third respondent proposing levy of GST at 18% on royalty paid by petitioner for the year April 2019 to March 2020 vide ANNEXURE A.

(ii) Issue a Writ of Certiorari or a writ in the nature of certiorari to quash the Notifications and the circular instructions that have led to levy of GST on the amount of royalty specifically including Circular bearing No.164/20.2021-GST dated 6.10.2021 vide ANNEXURE E (iii) to issue any other writ or order as deemed fit by this Hon'ble Court in the facts and circumstances of the case, to meet the interest of justice and equity."

2. Heard the learned counsel for the petitioner, learned counsel for respondent No.1 and learned High Court Government Pleader for respondent Nos. 2 and 3 and perused the material on record.

3. After arguing the matter for sometime, learned counsel for the petitioner submits that the petition may be disposed of as withdrawn, reserving liberty in favour of the petitioner to approach this Court, once again, and also take recourse to such other remedies as are available in law, in the event the respondents take further steps pursuant to the impugned audit report.

4. The said submission is placed on record.

5. Petition is disposed of as withdrawn, reserving liberty in favour of the petitioner to take recourse to such other remedies as are available in law, including approaching this Court subsequently, in the event the respondents take steps/action pursuant to the impugned audit report, in accordance with law.

6. Subject to the aforesaid direction and liberty reserved in favour of the petitioner, the petition stands disposed of.

In view of disposal of main petition, I.A.No.1/2023 does not survive for consideration.

Sd/-

(S.R.KRISHNA KUMAR)

JUDGE BMV*

CT-SG List No.: 2 Sl No.: 32