The Karnataka High Court has quashed a GST adjudication order and the consequential tax demand issued against a Bengaluru-based trader.
The Court held that the taxpayer must be given a fair opportunity to present her case, particularly in light of the retrospective relief available under Section 16(5) of the CGST Act, 2017.
The case involved M/s L.N. Traders, whose proprietrix contested an adjudication order dated April 13, 2024, passed u/s 73 of the CGST Act, including the demand issued on April 26, 2024.
The proceedings were started based on the fact that the taxpayer was ineligible to claim ITC because the GSTR-3B returns had been filed with a delay. However, an SCN and a personal hearing notice were issued via the GST portal, and no response was submitted.
The applicant before the HC claimed that she did not know how to operate a computer and was thus clueless about the notices uploaded on the GST portal.
She also mentioned that by virtue of Section 16(5) of the CGST Act, she was qualified to claim ITC for returns submitted within the extended statutory timeline.
Justice B.M. Shyam Prasad stated that the applicant’s appeal for the lack of computer literacy could not be quashed as mala fide.
The Court said that the applicability of Section 16(5) needs accurate analysis by the tax authorities, as it could entitle the applicant to the disputed ITC.
Read Also: Karnataka HC Quashes ₹1.13 Crore GST Demand Over Improper Service of SCN
Therefore, the HC partly permitted the writ petition, cancelled the adjudication order and the consequential demand, and asked the applicant to appear before the jurisdictional GST authority on July 23, 2026, with all supporting documents.
The authority has been directed to reconsider the case after furnishing the taxpayer a chance to showcase her case.
| Case Title | Smt. Nelamangala Rajagopal Amrutha vs. UOI |
| Case No. | NO. 11418 OF 2026 (T-RES) |
| For Petitioner | Sri. Shyamala V Devagiri |
| For Respondent | Sri. Jeevan J Neeralgi |
| Karnataka High Court | Read Order |
