Facts of the Case

The petitioner, Smt. Deepa G S, challenged three Orders-in-Original passed by the Central Tax authorities — dated 15.02.2021 (for FY 2014-15), 31.03.2022 (for FY 2015-16) and 19.06.2023 (for FY 2016-17) — as well as a notice to a third person under Section 79(1)(c) in Form GST DRC-13 dated 10.11.2025 issued for recovery pursuant to those orders.

Issues Involved

  1. Whether the multiple Orders-in-Original spanning three financial years, and the consequential third-party recovery notice, ought to be quashed in light of the Co-ordinate Bench ruling in Karnataka Chinmaya Seva Trust.

Petitioner's Arguments

  • The petitioner sought quashing of all three Orders-in-Original and the Section 79(1)(c) recovery notice issued against a third person, submitting that the controversy was covered by the Co-ordinate Bench ruling in M/s.Karnataka Chinmaya Seva Trust vs Joint Commissioner of Central Tax (WP No.11154/2023 and connected matters, decided on 03.07.2024).

Respondent's Arguments

  • Counsel for the respondents (Deputy Commissioner, Assistant Commissioner and Superintendent of Central Tax) appeared and contested the petition, though several contentions were urged by both sides.

Court Order / Findings

  • Justice S.R. Krishna Kumar held that the controversy was directly and squarely covered by Karnataka Chinmaya Seva Trust, which directed that Orders-in-Original impugned in such writ petitions stand set aside and be relegated to the designated officers to be reconsidered from the stage of the show cause notice, with any demands raised pursuant to such orders also set aside.
  • The present petition was disposed of in terms of that judgment, and all three impugned Orders-in-Original — for FY 2014-15, 2015-16 and 2016-17 — together with the Section 79(1)(c) recovery notice dated 10.11.2025, were quashed.
  • The matter was remitted to the concerned respondent to the stage of post-show-cause-notice, to proceed further in accordance with law.

Important Clarification

  • Where Orders-in-Original across multiple financial years, together with any consequential third-party recovery notice under Section 79(1)(c), are covered by the Karnataka Chinmaya Seva Trust ratio, the High Court will quash the entire chain of orders and notices together and relegate the matter to the post-show-cause-notice stage, rather than examining each year's order in isolation.

Sections Involved

  • Section 79(1)(c), Central Goods and Services Tax Act, 2017 — recovery of tax by requiring a third person to pay the amount to the credit of the government.
  • Form GST DRC-13, CGST Rules, 2017 — notice to a third person for recovery.

Decision – In Favour of

In favour of the Assessee — all three Orders-in-Original and the third-party recovery notice were quashed, with the matter remitted to the post-show-cause-notice stage.

Case Details

Court: High Court of Karnataka at Bengaluru
Case No.: WP No. 38183 of 2025
Neutral Citation: 2025:KHC:54226
Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
Date of Order: 18.12.2025

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