M/S H P Instruments vs. Assistnt Commissioner Of Commercial Taxes
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Before: SMT. LAKSHMI MENON, ADVOCATE)
In this petition, the petitioner seeks following reliefs: i) Issue a writ of Certiorari quashing the show cause notice under section 73(1) of the Act dated 13.12.2023 vide Show Cause Notice No. ACCT.LGSTO-15/DRC-01/2023-24 issued by the Respondent No.1 and referred as Annexure-A1. ii) Issue a writ of Certiorari quashing the Summary of Show Cause Notice in Form GST DRC-01 dated 13.12.2023 vide No: ACCT.LGSTO-15/DRC-01/2023-24 issued by Respondent No. 1 and referred as Annexure-A2. iii) Issue a writ of Certiorari quashing the Order No. ACCT/LGSTO-015/DRC.07/2023-24 passed under section 73(9) of KGST/CGST Act 2017 dated 14.03.2024 by the Respondent No.1 herein marked and referred as Annexure-A3. iv) Issue a writ of Certiorari quashing the Summary of the order in Form DRC-07 Reference No: ZD290324034070U dated 14.03.2024 passed by the Respondent No. I herein marked and referred as Annexure-A4. v) Issue a writ in the nature of certiorari and quash the order rejecting the appeal filed vide Order no. GST.AP.949/2025-26 dated 06.06.2025 passed by the Respondent No.2 herein marked and referred as Annexure-A5 vi) Issue a writ in the nature of certiorari and quash Form GST APL-02 dated 13.06.2025 passed by the Respondent No.2 herein marked and referred as Annexure-A6. vii) Alternatively, remand the matter to the Show Cause Notice Stage, directing the Respondent No.1 to adjudicate the proceedings afresh in accordance with law, after granting the Petitioner a fair HC-KAR NC: 2025:KHC:53003 and effective opportunity to be heard and considering all documents and records furnished; viii) Alternatively, direct the Respondent No.2 to consider the appeal of the petitioner filed against the order passed under section 73(9) of the Act on merits and also consider the pre-deposit which has been already paid. ix) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.
Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.
A perusal of material on record will indicate that, the first respondent issued a show-cause notice dated 13.12.2023 under Section 73(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice, the first respondent proceeded to pass the impugned order dated 14.03.2024 under Section 73(9) of the KGST Act, 2017 confirming the total demand of Rs.12,41,040/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the petitioner was not aware of the FORM GST ASMT-10, FORM GST DRC-01A, show cause notices as the e-mail id to which the aforesaid notices were issued to was not in use by the petitioner HC-KAR NC: 2025:KHC:53003 and the petitioner had changed the email address on 08.02.2018 and hence could not submit replies/ documents to the show-cause notice and resultantly could not contest the proceedings. Pursuant to 05.02.2025 when the order was shared by the GST department on the petitioner's Whatsapp chat the petitioner filed an appeal on 21.03.2025 which was dismissed as barred by limitation vide impugned order dated 06.06.2025. It is submitted that since the GST Appellate Tribunal has not been constituted as on today, the petitioner has no option but to approach this Court by way of the present petition interalia contending that the inability and omission on the part of the petitioner to submit a reply to the pre-intimation notice and show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings.
Per contra, learned HCGP for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. HC-KAR NC: 2025:KHC:53003
Under these circumstances, having regard to the specific assertion on the part of the petitioner that his inability and omission to submit replies and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, I deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the petitioner by setting aside the impugned orders at Annexures - A1, A2, A3, A4, A5 and A6 and remitting the matter back to the first respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show- cause notice dated 13.12.2023 by imposing cost of Rs.10,000/- on the petitioner payable to the High Court Advocate Welfare Fund.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned order dated 14.03.2024 passed by the first respondent under Section 73(9) of the KGST/CGST Act, 2017at Annexure – A3 as well as impugned order dated 06.06.2025 passed by the second respondent are hereby set aside. HC-KAR NC: 2025:KHC:53003 (iii) The matter is remitted back to the first respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 13.12.2023 subject to the petitioner depositing Rs.10,000/- to the High Court Advocate Welfare Fund.
(iv) The petitioner is directed to appear before the first respondent on 20.01.2026 without awaiting further notice from the first respondent.
(v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the first respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law.
(vi) In the event, the Petitioner does not appear before the first respondent on 20.01.2026 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE YKL List No.: 2 Sl No.: 19 CT-SG
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.