The Karnataka High Court has granted interim relief in a case raising an important question of law—whether the same officer who conducts an audit under the Goods and Services Tax (GST) regime can also adjudicate proceedings determining tax liability under Sections 73 or 74 of the GST Acts.
The bench of Justice B.M. Shyam Prasad passed the interim order observing that the issue is already pending consideration before the High Court in another writ petition involving the same legal controversy.
The central question before the High Court is whether an officer who has conducted an audit of a taxpayer is legally competent to subsequently adjudicate proceedings for recovery of tax under Section 73 or Section 74 of the Karnataka Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017.
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The petitioner challenged the authority of the audit officer to act as the adjudicating authority, contending that such a course raises important legal issues regarding the statutory framework governing audit and adjudication under the GST laws.
The High Court noted that an identical question has already been raised in Writ Petition No. 961/2026, where the Court had taken note of a circular issued for the Central Tax Authorities and had already granted interim protection.
Considering that the present petition involved the very same legal issue, the Court held that parity should be maintained while deciding the interim request.
After hearing counsel appearing for the petitioner and the State, Justice B.M. Shyam Prasad granted an interim order in favour of the petitioner solely on the ground of parity with the earlier pending writ petition.
The Court directed that the matter be re-listed on 22 June 2026 for further consideration.
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