Facts of the Case

The petitioners, Smt. Sanenahalli Manjegowda Bhoomika and her proprietary concern Sree Bhairava Travels (registered under the GST Act), challenged the Order-in-Original No. 153/2023-24/AC NWD4 dated 29.02.2024 passed by the Assistant Commissioner of Central Tax, North West Division-4, Bengaluru, along with a subsequent letter dated 17.11.2025 issued by the same authority. The petitioners also sought a direction for grant of personal hearing. During the pendency of the proceedings, the petitioners' bank account with Karnataka Bank Limited had been frozen pursuant to the impugned order.

Issues Involved

  1. Whether the impugned Order-in-Original dated 29.02.2024 and the subsequent recovery letter dated 17.11.2025 were sustainable in law.
  2. Whether the petitioners were entitled to have the frozen bank account de-freezed pending fresh adjudication.

Petitioner's Arguments

  • The Order-in-Original and the subsequent letter were issued without adequate opportunity of personal hearing.
  • The controversy was squarely covered by the coordinate Bench ruling in M/s. Karnataka Chinmaya Seva Trust v. Joint Commissioner of Central Tax (WP No. 11154/2023 and connected matters), which had set aside similarly-situated Orders-in-Original and relegated the matters to the show-cause-notice stage.
  • The bank account of the petitioners, frozen in connection with the recovery proceedings, ought to be released given the setting aside of the underlying order.

Respondent's Arguments

  • Learned counsel for the respondents accepted notice and did not seriously contest that the controversy was covered by the Karnataka Chinmaya Seva Trust batch ruling.

Court Order / Findings

  • The Court held that the issue in controversy was directly and squarely covered by the ruling in Karnataka Chinmaya Seva Trust, where Orders-in-Original impugned on similar grounds were set aside and the matters relegated to the officers concerned at the show-cause-notice stage.
  • Applying the same ratio, the Order-in-Original dated 29.02.2024 and the letter dated 17.11.2025 were quashed.
  • The matter was remitted back to the concerned respondent to the stage of post-show-cause-notice, to proceed further in accordance with law.
  • The respondents were directed to de-freeze the bank account of the petitioners immediately, without any delay.

Important Clarification

  • Where an Order-in-Original is set aside on grounds already adjudicated in a coordinate-bench batch judgment, the matter is ordinarily relegated to the post-show-cause-notice stage rather than requiring a fresh SCN from scratch.
  • Consequential coercive measures such as bank account attachment do not survive independently once the order founding the recovery is quashed, and courts routinely direct immediate de-freezing in such situations.

Sections Involved

  • Section 73/74, CGST Act, 2017 – framework for determination of tax and passing of Orders-in-Original following show-cause notice.
  • Articles 226 and 227, Constitution of India – writ jurisdiction invoked to challenge the Order-in-Original and consequential recovery letter.

Decision – In Favour of

The petition is allowed in favour of the Assessee. The Order-in-Original and the subsequent recovery letter stand quashed, the matter is remitted to the post-show-cause-notice stage, and the bank account is directed to be de-freezed immediately.

Case Details

  • Court: High Court of Karnataka at Bengaluru
  • Case No.: Writ Petition No. 38343 of 2025 (T-RES)
  • Neutral Citation: NC: 2025:KHC:54236
  • Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
  • Date of Order: 18.12.2025

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