Ocean Constructions (INDIA) Private Limited vs. Additional Commissioner Of Central Tax
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs: “(i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the digitally signed and electronically issued Order-in-Original issued for the tax period January 2022 to March 2022 under section 74(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act") dated 23.01.2025 bearing OIO SI.No.MLR-GST-000- N-ADC-SC-26-2024-25 and DIN No.20250157YZ0000333C04 issued by Respondent No.1 and the same is enclosed and marked as Annexure 'A'. HC-KAR NC: 2025:KHC:53115 (ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the digitally signed and electronically issued Show Cause Notice (hereinafter referred to as "SCN") issued for the tax period January 2022 to March 2022 under Section 74(1) of the CGST Act dated 15.07.2024 issued by the Respondent No.2 bearing DIN No.202407DSS1000082398A and the same is enclosed and marked as Annexure 'B'.
(iii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.”
Heard the learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
A perusal of the material on record will indicate that the respondent initiated proceedings under Section 74 of the CGST / KGST Act, 2017 and issued intimation notice to the petitioner to file reply. Subsequently, the 2nd respondent issued Show Cause Notice calling for explanation with regard to discrepancies in the tax liability. The petitioner filed its reply dated 23.12.2024 to the aforesaid Show Cause Notice. Pursuant to the same, the respondent without considering the reply filed by the petitioner and not providing the petitioner sufficient opportunity of personal HC-KAR NC: 2025:KHC:53115 hearing proceeded to pass the impugned order at Annexure – A dated 23.01.2025, which is assailed in the present petition.
Learned counsel for the petitioner submits that the petitioner had filed its reply to the show cause notice dated 15.07.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure – A dated 23.01.2025 and the impugned order deserves to be quashed and the matter 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.
Per contra, learned counsel for respondents would support the impugned order 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 order will indicate that it is an undisputed fact that the HC-KAR NC: 2025:KHC:53115 petitioner filed its reply to the show-cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to provide 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 order 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 petition is hereby allowed.
ii) The impugned order at Annexure – A dated 23.01.2025 passed by 1st respondent, is hereby set aside; iii) Matter is remitted back to 1st respondent to stage of post Show Cause Notice for reconsideration afresh. iv) Petitioner is at liberty to submit its reply to the show cause notice along with relevant documents. HC-KAR NC: 2025:KHC:53115 v) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, the 1st respondent shall afford reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 40
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.