IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 8^TH DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO. 36549 OF 2025 (T-RES)

BETWEEN:

1. M/S RNS MOTORS PRIVATE LIMITED

(A PRIVATE LIMITED COMPANY INCORPORATED

UNDER THE COMPANIES ACT 1956)

REPRESENTED BY ITS MANAGING DIRECTOR,

MR SUNIL RAMA SHETTY,

NO. 2275, GURGUNTE PALYA,

TUMKUR ROAD,

YESHWANTAPUR,

BANGALORE - 560022.

…PETITIONER

(BY SRI. RAGHAVENDRA B. HANJER, ADVOCATE)

AND:

1. STATE OF KARNATAKA

REPRESENTED BY ITS SECRETARY,

Digitally signed

by DEPARTMENT OF FINANCE,

SHARADAVANI

B VIDHANA SOUDHA,

Location: High AMBEDKAR VEEDHI,

Court of

Karnataka BANGALORE 560 001.

2. THE JOINT COMMISSIONER OF

COMMERCIAL TAXES (ADMN)

DGSTO-6, 3RD FLOOR,

KIADB BUILDING,

14TH CROSS, 4TH PHASE,

PEENYA 2ND STAGE, BANGALORE - 560058.

3. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-6.1 DGSTO-6, KIADB BUILDING, 3RD FLOOR, 14TH CROSS, 4TH PHASE, PEENYA, 2ND STAGE, BANGALORE - 560058.

…RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED AUDIT OBSERVATION UNDER SECTION 65(6) OF THE KGST / CGST ACT AND SECTION 20 OF THE IGST ACT, 2017 READ WITH RULE 101(4) OF THE KGST RULES, 2017 BEARING NO. DCCT (AUDIT)- 6.1/2022-23 DATED 21.06.2022 (ANNEXURE- A) ISSUED BY THE 3RD RESPONDENT, THE IMPUGNED AUDIT ORDER UNDER SECTION 65(6) OF THE KGST / CGST ACT AND SECTION 20 OF THE IGST ACT, 2017 READ WITH RULE 101(4) OF THE KGST RULES, 2017 BEARING NO. DCCT (AUDIT)-6.1/2022-23 DATED 24.06.2022 (ANNEXURE- B1) ALONG WITH AUDIT REPORT UNDER SECTION 65(6) BEARING REF NO. 17007 DATED 24.06.2022 ISSUED IN FORM GST ADT-02 (ANNEXURE-B2) BY THE 3RD RESPONDENT, THE IMPUGNED NOTICE BEARING FILE JCCT (ADM), DGSTO- 6/BNG/SMR- /2024-25 DATED 16.01.2025 ISSUED IN FORM GST RVN-01 (ANNEXURE- C) ISSUED BY THE 2ND RESPONDENT AND THE CONSEQUENT ORDER BEARING NO. JCCT (ADMN)/DGSTO- 6/GST/SMR/2025-26 DATED 03-09-2025 (ANNEXURE- D1) ALONG WITH SUMMARY OF THE DEMAND BEARING NO. DCCT(ADMN)/DGSTO-6/GST/SMR-/2025-26 DATED 03-09-2025 ISSUED IN FORM GST APL-04 (ANNEXURE- D2) BY THE 2ND RESPONDENT AS WITHOUT JURISDICTION AND PASSED BEYOND THE NO. STATUTORY PERIOD OF LIMITATION AND ETC.

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

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

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:

"WHEREFORE, the Petitioner most respectfully prays that the Hon'ble High Court be pleased to:

a) Issue a writ, order or direction in the nature of Certiorari by quashing the impugned Audit Observation under Section 65(6) of the KGST / CGST Act & Section 20 of the IGST Act, 2017 read with Rule 101(4) of the KGST Rules, 2017 bearing No. DCCT (Audit)-6.1/2022-23 dated 21.06.2022 (Annexure-'A') issued by the 3rd Respondent, the impugned Audit Order under Section 65(6) of the KGST / CGST Act & Section 20 of the IGST Act, 2017 read with Rule 101(4) of the KGST Rules, 2017 bearing No. DCCT (Audit)-6.1/2022- 23 dated 24.06.2022 (Annexure-'B1') along with Audit Report under Section 65(6) bearing Ref No. 17007 dated 24.06.2022 Issued in FORM GST ADT-02 (Annexure-'B2') by the 3rd Respondent, the impugned Notice bearing File No. JCCT(ADM),DGSTO-6/BNG/SMR- /2024-25 dated 16.01.2025 issued in FORM GST RVN-01 (Annexure- 'C')

issued by the 2nd Respondent and the consequent Order bearing No. JCCT (ADMN)/DGSTO-6/GST/SMR/2025-26 dated 03-09-2025 (Annexure- 'D1') along with Summary of the Demand bearing No. DCCT(ADMN)/DGSTO- 6/GST/SMR- /2025-26 dated 03-09-2025 issued in FORM GST APL-04 (Annexure- 'D2') by the 2nd Respondent as without jurisdiction and passed beyond the statutory period of limitation;

b) Issue a writ or order or direction in the nature of any wit try setting aside the GST demand of Rs.7,37,05,082/ along with interest of Rs.9,79,54,244/- and penalty of Rs.73,78,508/- confirmed in the impugned Order bearing No. JCCT (ADMN)/DGSTO-6/GST/SMR/2025-26 dated 03- 09