Karsten Homes Private Limited vs. The Deputy Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, the petitioner seeks the following reliefs:
“(a) Issue a writ in the nature of Certiorari /or any such other appropriate writ to quash the impugned Adjudication Orders bearing No. DCCT (Audit)4.1/GST-ADJ/2024-25 (for the year 2018-19) dated 07.04.2025 [ANNEXURE-Al and Order of Adjudication bearing No. DCCT (Audit) 4.1/GST- ADJ/2025-26 (for the year 2020-21) dated 07.04.2025 [ANNEXURE-B1 passed and issued by the First Respondent;
(b) Grant such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice.”
Heard the learned counsel for the petitioner and the learned HCGP for respondents and perused the material on record. HC-KAR NC: 2025:KHC:54477
A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods 2018-19. The Respondent initiated proceedings u/s. 74 of the Act CGST/KGST Act, 2017, the 2nd respondent issued a show-cause notice dated 03.09.2024, calling for explanation with regard to some discrepancies in tax liability. The Petitioner filed its reply dated 28.02.2025 to the aforesaid show-cause notice. Pursuant to the same, the 1st respondent, without considering the reply filed by the Petitioner, proceeded to pass the impugned orders dated 07.04.2025 at Annexures-A and B for the years 2018-19 and 2020- 21 respectively, which are assailed in the present petition.
Learned counsel for the petitioner submits that the Petitioner had filed its reply to the show-cause notice dated 28.02.2025 and the respondent without considering the said reply, has passed the impugned order, which deserves to be quashed and the matter is remitted back to the respondent for reconsideration of the matter afresh, in accordance with law, by providing an opportunity to the petitioner to submit a reply to the show cause notice/produce necessary documents and thereafter to pass appropriate orders. HC-KAR NC: 2025:KHC:54477
Per contra, learned HCGP for respondent would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings.
A perusal of the material on record including the impugned orders will indicate that it is an undisputed fact that the petitioner filed its Reply to the show-cause notice and the impugned orders have been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the Respondent failing to provide an opportunity for the petitioner to provide a reasonable opportunity to produce necessary documents by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions.
In the result, I pass the following:
ORDER i) The Writ Petition is allowed; HC-KAR NC: 2025:KHC:54477 ii) The impugned orders passed by 1st Respondent dated 07.04.2025 at Annexures-A and B for the years 2018-19 and 2020-21 respectively, are hereby set aside; iii) The petitioner shall appear before the 2nd respondent on 02.02.2026, on which date, he shall submit his reply to the show cause notice along with relevant documents. iv) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 02.02.2026, the 2nd respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further, in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 2 Sl No.: 35
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.