Facts of the Case: M/s Maruthi Logistics, a sole proprietorship represented by Mr. Mahabaleswar Bhari, was issued a show-cause notice dated 31.12.2020 (File No. GEXCOM/AE/VRFN/TPD/1156/2020-AE) by the tax authorities. This culminated in an Order-in-Original dated 20.3.2024 (F.No.V/24/81/2022 CWD5) passed by the Assistant Commissioner, GST West Commissionerate, and was followed by a Recovery Notice dated 10.9.2025 (DIN 20250957YU00004984F1) issued by the Superintendent of Central Tax. The petitioner approached the High Court under Articles 226 and 227 seeking to quash all three — the show-cause notice, the Order-in-Original, and the Recovery Notice.

Issues Involved:

  1. Whether the challenge to the show-cause notice, the consequent Order-in-Original, and the recovery notice issued pursuant thereto is squarely covered by the Coordinate Bench ruling in M/s Karnataka Chinmaya Seva Trust vs Joint Commissioner of Central Tax.

Petitioner's Arguments:

  • Relied on the Coordinate Bench decision in Karnataka Chinmaya Seva Trust vs Joint Commissioner of Central Tax (WP No.11154/2023 and connected matters, decided 3.7.2024), where similarly-placed writ petitions challenging show-cause notices and Orders-in-Original were relegated to designated officers from the show-cause stage, with demands raised pursuant to such orders also being set aside.
  • Sought identical treatment — quashing of the Order-in-Original, the Recovery Notice, and relegation of the matter to the show-cause stage.

Respondent's Arguments:

  • Several contentions were urged in support of the department's position defending the Order-in-Original and consequent recovery action, though the Court found the controversy directly and squarely covered by the coordinate bench ruling.

Court Order / Findings:

  • The Court held that the issue in controversy was directly and squarely covered by the Coordinate Bench judgment in Karnataka Chinmaya Seva Trust, which had relegated similar matters back to the show-cause stage and set aside consequent demands.
  • The Order-in-Original dated 20.3.2024 was quashed, and the matter remitted to the concerned respondent to the stage of post-show-cause notice to proceed further in accordance with law.

Important Clarification:

  • Where a challenge to a GST Order-in-Original and connected show-cause notice is already settled by a coordinate bench ruling relegating such matters to the designated officer from the show-cause stage, the High Court will follow that precedent and quash both the order and any recovery action founded on it, rather than adjudicate the underlying dispute afresh on facts.

Sections Involved:

  • Show-Cause Notice and Order-in-Original adjudication process, Central Goods and Services Tax Act, 2017 — the statutory procedure preceding confirmation of a tax demand, held to require relegation to the designated officer where covered by the Chinmaya Seva Trust ratio.

Decision – In Favour of: Assessee. Order-in-Original and recovery notice quashed; matter remitted to the post-show-cause stage.

Related Case Laws: See also M/s Infomart (India) Pvt Ltd vs Asst Commissioner of Commercial Taxes (WP No. 37779 of 2025) and M/s N S Industrial Hardware vs Commercial Tax Officer, LGSTO-180 (WP No. 37576 of 2025), both decided by the Karnataka High Court the same day on comparable procedural-relief grounds.

Case Details: High Court of Karnataka at Bengaluru | WP No. 33498 of 2025 (T-RES) | NC: 2025:KHC:53364 | Coram: Hon'ble Mr. Justice S.R. Krishna Kumar | Date of Order: 15.12.2025.

Link to Download the Order: View/Download the Order

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