M/S S P Metals vs Additional Commissioner Of Commercial - Tax Dispute

## Unlock Advanced Research with PRISM AI

Integrated with over 4 crore judgments and laws — designed for legal practitioners, researchers, students and institutions

• Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc -... Upgrade to Premium [Cites 6, Cited by 0 ] ### Karnataka High Court

M/S S P Metals vs Additional Commissioner Of Commercial ... on 17 March, 2026

Author: S.Sunil Dutt Yadav

Bench: S.Sunil Dutt Yadav

-1-
NC: 2026:KHC:15562
WP No. 4273 of 2026
C/W WP No. 4225 of 2026

        HC-KAR

             IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                 DATED THIS THE 17TH DAY OF MARCH, 2026

                                 BEFORE
              THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
                 WRIT PETITION NO. 4273 OF 2026 (T-RES)
                                   C/W
                 WRIT PETITION NO. 4225 OF 2026 (T-RES)

        IN WP No. 4273/2026

        BETWEEN:
              M/S. S P METALS,
              NO.7,8 SRIGANDHAKAVALU,
              YASHWANTHAPURA HOBLI,
              BENGALURU-560091,
              REPRESENTED BY ITS PROPRIETOR
              SRI. SARAVANAN S/O SRINIVASAN A.,
              AGED ABOUT 45 YEARS.
                                                       ...PETITIONER

Digitally (BY SRI. SHREEHARI, ADVOCATE)
signed by
VIJAYA P
Location: AND:
HIGH
COURT OF 1. ADDITIONAL COMMISSIONER OF COMMERCIAL
KARNATAKA
TAXES,
(SMR)-1, BENGALURU,
7TH FLOOR, VANIJYA THERIGE KARYALAYA- 1,
KALIDASA MARG, 1ST MAIN,
GANDHINAGAR, BENGALURU - 560009.

        2.    JOINT COMMISSIONER OF COMMERCIAL TAXES,
              (VIGILANCE), BENGALURU,
              V.T.K.-2 BUILDING, 3RD FLOOR,
                          -2-
                                     NC: 2026:KHC:15562
                                   WP No. 4273 of 2026
                               C/W WP No. 4225 of 2026

HC-KAR

 80FT ROAD, RAJENDRANAGARA,
 KORAMANGALA, BENGALURU-560047.

1. JOINT COMMISSIONER OF COMMERCIAL TAXES
   (APPEALS-1), BENGALURU,
   TTMC, BMTC BUILDING, 2ND FLOOR,
   SHANTHINAGAR, BENGALURU-560047.

2. COMMERCIAL TAX OFFICER (VIGILANCE)-32,
   BENGALURU,
   ROOM NO.606, 6TH FLOOR,
   B BLOCK, V.T.K.-2 BUILDING,
   RAJENDRANAGARA, KORAMANGALA,
   BENGALURU-560047.

3. COMMISSIONER OF COMMERCIAL TAXES,
   V.T.K.-2 BULLDING, RAJENDRANAGARA,
   KORAMANGALA, BENGALURU-560047.
   ...RESPONDENTS
   (BY SRI. K. HEMAKUMAR, AGA FOR R1 TO R5)

   THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF

THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF

CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR

DIRECTION, QUASHING THE STAY ORDER DATED 30.01.2026

PASSED BY THE RESPONDENT NO.1 UNDER SECTION 108(1)

OF THE ACT BEARING NO.SMR-1/GST/BNG/STAY/2025-26

ENCLOSED HEREIN AS ANNEXURE K AND ETC.,
-3-
NC: 2026:KHC:15562
WP No. 4273 of 2026
C/W WP No. 4225 of 2026

HC-KAR

IN WP NO. 4225/2026

BETWEEN:

1. M/S. S P METALS, NO.7, 8 SRIGANDHAKAVALU, YASHWANTHAPURA HOBLI, BENGALURU-560091, REPRESENTED BY ITS PROPRIETOR SRI. SARAVANAN S/O SRINIVASAN A., AGED ABOUT 45 YEARS. ...PETITIONER

(BY SRI. SHREEHARI, ADVOCATE)

AND:

1. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES,
   (SMR)-1, BENGALURU,
   7TH FLOOR, VANIJYA THERIGE KARYALAYA- 1,
   KALIDASA MARG, 1ST MAIN,
   GANDHINAGAR, BENGALURU - 560009.

2. JOINT COMMISSIONER OF COMMERCIAL TAXES,
   (VIGILANCE), BENGALURU,
   V.T.K.-2 BUILDING, 3RD FLOOR,
   80FT ROAD, RAJENDRANAGARA,
   KORAMANGALA, BENGALURU-560047.

3. JOINT COMMISSIONER OF COMMERCIAL TAXES
   (APPEALS-1), BENGALURU,
   TTMC, BMTC BUILDING, 2ND FLOOR,
   SHANTHINAGAR, BENGALURU-560047.

4. COMMERCIAL TAX OFFICER (VIGILANCE)-32,
   BENGALURU,
   ROOM NO.606, 6TH FLOOR,
   -4-
   NC: 2026:KHC:15562
   WP No. 4273 of 2026
   C/W WP No. 4225 of 2026

HC-KAR

 B BLOCK, V.T.K.-2 BUILDING,
 RAJENDRANAGARA, KORAMANGALA,
 BENGALURU-560047.

1. COMMISSIONER OF COMMERCIAL TAXES,
   V.T.K.-2 BULLDING, RAJENDRANAGARA,

   KORAMANGALA,
   BENGALURU-560047.
   ...RESPONDENTS

(BY SRI. K. HEMAKUMAR, AGA FOR R1 TO R5)

 THIS WP IS FILED UNDER [ARTICLES 226](https://indiankanoon.org/doc/1712542/) AND [227](https://indiankanoon.org/doc/1331149/) OF

THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT

OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT,

ORDER OR DIRECTION, QUASHING THE STAY ORDER

DATED 30.01.2026 PASSED BY THE RESPONDENT NO.1

UNDER SECTION 108(1) OF THE ACT BEARING NO.SMR-

1/GST/BNG/STAY/2025-26 ENCLOSED HEREIN AS

ANNEXURE K AND ETC.,

  THESE PETITIONS, COMING ON FOR FRESH MATTERS,

THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
-5-
NC: 2026:KHC:15562
WP No. 4273 of 2026
C/W WP No. 4225 of 2026

HC-KAR

                   ORAL ORDER In W.P.No.4225/2026, the petitioner has sought

for setting aside of the order at Annexure-K. The order at

Annexure-K is the order staying the order of the appellate

authority dated 28.01.2026. It is noticed that the order

passed under Section 130 of the Central Goods and

Services Tax Act, 2017 (for short 'the Act') came to be

challenged before the first appellate authority and the first

appellate authority had allowed the appeal in part in

favour of the petitioner herein. Such order of the appellate

authority was subject matter of the revisional proceedings

under Section 108 and the order of appellate authority

came to be stayed as per the order at Annexure-K.

1. Learned counsel for the petitioner submits that

in terms of the order of the first appellate authority, the

order passed under Section 130, came to be set aside and

the first appellate authority had modified the Order-in-

Original by upholding the order passed under [Section

129(1)(a)](https://indiankanoon.org/doc/174077835/). It is submitted that insofar as the order of the -6- NC: 2026:KHC:15562 WP No. 4273 of 2026 C/W WP No. 4225 of 2026 HC-KAR

first appellate authority, levying 200% of tax as penalty,

petitioner has satisfied the same. It is further submitted

that insofar as the Order-in-Revision, appropriate

proceedings has been taken by challenging the same in

the present Writ Petition No.4225/2026.

1. Learned counsel for the petitioner would submit

that the goods and conveyance may be released, taking

note that the liability imposed by virtue of the first

appellate order of 200% of tax has been satisfied.

1. Learned Additional Government Advocate

submits that on previous occasions as well, the petitioner

had suffered certain demands that were raised by the

Department after having noticed certain lapse and

discrepancies, petitioner needs to be put on terms to

ensure that in the event that the Revisional proceedings

culminate in an order in favour of the revenue and the

order under Section 130 is revived, the revenue is -7- NC: 2026:KHC:15562 WP No. 4273 of 2026 C/W WP No. 4225 of 2026 HC-KAR

required to have certain assets or security in order to

recover and enforce the order to be passed.

1. However, taking note that the very revision

proceedings is still to be concluded and in terms of the

order of the first appellate authority, petitioner has

satisfied the same, it would be appropriate to put the

petitioner on terms regarding his request for release of

goods and conveyance.

1. In light of petitioner having satisfied the

demand in terms of the first appellate authority, the

revenue is directed to release goods and conveyance. The

petitioner is to furnish an indemnity bond so as to meet

any liability to the department in the event Revisional

proceedings culminate in an order in favour of the revenue

and order under Section 130 of the Act, stands revived.

1. The affidavit filed by the petitioner is taken on

record. The undertaking by the petitioner in the affidavit is

also noted. It is made clear that the petitioner is required -8- NC: 2026:KHC:15562 WP No. 4273 of 2026 C/W WP No. 4225 of 2026 HC-KAR

to abide by the final directions that may be issued in the

Revisional proceedings and any breach of undertaking

would be construed to be an act of contempt.

1. Insofar as the challenge made to the Revisional

Order, all contentions of the petitioner are kept open to be

raised before the Revisional Authority.

1. Insofar as W.P.No.4273/2026, the petitioner

has sought for stay of the order dated 30.01.2026 passed

by the Revisional Authority under Section 108(1) of the

Act. The Revisional Authority by virtue of the order at

Annexure-K had stayed the order of the appellate

authority dated 28.01.2026. The first appellate authority

had partly allowed the appeal of the petitioner filed

challenging the invocation of Section 130. In terms of the

said order of the appellate authority, the Order-in-Original

came to be modified by modifying the impugned penalty

to an order under Section 129(1)(a) by levy of penalty of

200% of the tax.

-9-

NC: 2026:KHC:15562 WP No. 4273 of 2026 C/W WP No. 4225 of 2026 HC-KAR

1. The petitioner has satisfied the liability that as

shown in terms of the order of the first appellate authority.

Taking note that the petitioner had succeeded in the first

appeal proceedings and has satisfied the liability and

taking note of the affidavit filed referred to in the order

passed above, it would be appropriate to dispose of the

present Writ Petition directing for release of all goods and

conveyance.

1. The petitioner to file an indemnity bond to the

revenue at the time of release of the goods and

conveyance. It is made clear that the undertaking made in

the affidavit would be binding on the petitioner and any

breach of undertaking would be construed to be an act of

contempt.

1. All contentions raised regarding the Revisional

proceedings are kept open to be raised before the

authority. The petitioner relating to proceedings pending in

both the writ petitions referred to above, is to appear

• 10 -

NC: 2026:KHC:15562 WP No. 4273 of 2026 C/W WP No. 4225 of 2026 HC-KAR

before respondent No.1 without further notice on

16.04.2026.

1. In terms of the above, both the petitions are

disposed of. All contentions are kept open in both

matters.

Sd/-

(S SUNIL DUTT YADAV)
JUDGE

MCR