Shri. B M Mallappa vs. The Assistant Commissioner Of Commercial Taxes
Original PDF →The petitioner is aggrieved by the Adjudication Orders dated 08.08.2024 [for the period 2019-20] and dated 22.04.2024 [for the period 2018-19] [Annexures-A1 and B1 respectively]. These Adjudication Orders are premised in the assertion that the Show Cause Notices are issued to the petitioner, but he has filed no response.
Sri Pranay Sharma Y, the learned counsel for the petitioner, submits that the proceedings are concluded because of a short declaration of output turn over in GSTR 3B, in relation to the supplies made under MGNREGA Scheme and that the petitioner could not respond to either the intimations in Form GST DRC-01A or to the Show Cause Notices in Form GST DRC-01. The learned counsel invites HC-KAR
CNR: KAHC010464582026 NC: 2026:KHC:36137 WP No. 21271 of 2026
this Court’s attention to the following averment in the memorandum of petition.
“23. a. The petitioner submits that the petitioner has not been served the Form GST DRC- 01 and the Form GST DRC-01A as mentioned in the order passed under section 73(9) of the CGST Act, 2017 dated 08.08.2024 and 22.04.2024 by the Respondent No.1 for the tax period 2018-19 & 2019-20 respectively and consequently the entire proceedings are in violation of principles of natural justice. b. In fact, the show cause notice, GST Form DRC-01 and GST Form DRC-01A have been uploaded on the GST portal under the view additional notice column which the petitioner had invertedly missed and the department ought to have issued the same under the ‘View Notices & Orders’ tab.”
Sri Pranay Sharma Y also submits that the Board Circulars dated 27.12.2022 and 17.07.2023 are issued covering the subject tax period HC-KAR
CNR: KAHC010464582026 NC: 2026:KHC:36137 WP No. 21271 of 2026
which envisage an opportunity to a Registered Taxable Person [RTP] to produce documents to establish the genuineness of the transactions even if those are not declared by the supplier.
Sri K Hema Kumar, a learned Additional Government Advocate for the first to fourth respondents, is heard for the disposal of the petition examining whether the petitioner is entitled to another reasonable opportunity. The first respondent has referred to the Show Cause Notices in Form GST DRC-01 dated 30.05.2024 [for the period 2019-20] and 25.12.2023 [for the period 2018-19]. The first respondent has also referred to an opportunity of personal hearing being extended to the petitioner on 26.07.2024 and 22.02.2024 [for both the afore periods] observing that the petitioner has not availed this opportunity but without further details of the opportunity so extended. HC-KAR
CNR: KAHC010464582026 NC: 2026:KHC:36137 WP No. 21271 of 2026
The petitioner contends that the allegation of short declaration of outward turnover i.e., mismatch between Forms GSTR-3B and GSTR-2A can be explained with the support of the documents and certificates as permissible in terms of the Board Circulars. The circumstances asserted by the petitioners and the terms of the Circular persuade this Court to opine that the petitioner must have another opportunity. Hence, the following.
ORDER
The petition is allowed and the Adjudication Orders/ Summaries thereof dated 08.08.2024/10.08.2024 and 22.04.2024 [Annexures-A1, A2 and B1, B2] and the Recovery Notices dated 16.02.2026, 15.05.2026 [Annexure- C1, C2] are quashed subject to the following terms. [a] The proceedings are restored to the respondent for due consideration HC-KAR
CNR: KAHC010464582026 NC: 2026:KHC:36137 WP No. 21271 of 2026
subject to the petitioner depositing 10% of the tax in demand by 12.10.2026 subject to the outcome in the restored proceedings.
[b] The petitioner is permitted to file, along with the certified copy of this Order, the copies of the documents to show the genuineness of the transactions.
[c] The petitioner shall produce these documents by 12.10.2026 and the respondent shall consider these documents and then conclude the proceedings by a reasoned order. (B M SHYAM PRASAD) JUDGE
AN/-
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.