Karnataka High Court Quashes GST Order and Limits Magistrate Power in Tax Cases

The Karnataka High Court set aside a GST adjudicating authority’s Order‑in‑Original and subsequent DRC‑07 penalty order after finding that the authority ignored a detailed reply and fourteen supporting documents filed by Blackfish Technologies Private Limited. The court held that the omission violated natural‑justice principles and remitted the matter for fresh consideration, directing the authority to consider the taxpayer’s submissions and to provide a personal hearing.

In a separate ruling, the court clarified that a magistrate acting under Section 42(9)(c) of the Karnataka Value Added Tax Act has jurisdiction solely to recover tax arrears and cannot adjudicate the legality of statutory forms such as the ‘H’ Form. The petitioner, Mohammed Farooq of Gold Star Granite, was instructed to approach the Assessing Authority and submit the required statutory forms for a determination consistent with the law.