M/S Aqsa Industries vs. State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, the petitioner seeks the following reliefs:
"a) Issue writ of certiorari or writ in the nature of certiorari quashing the Appeal order passed under Section 161 R/w 107 of the CGST/KGST Act at Annexure-H, bearing GST.AP.908/2024-25 dated 07/08/2025 issued by Respondent No.2 for the period December 2021 to July 2025, in so far as the petitioner is concerned.
b) Issue writ of declaration or Writ in the nature of the declaration, declaring that cancellation of registration does not amount to an error apparent on the fact of the record HC-KAR NC: 2025:KHC:52526 under Section 161 of the CGST/KGST Act, in so far as the petitioner is concerned.
c) Issue Writ of Mandamus or Writ in the nature of Mandamus directing the Respondent - 3 to restore the registration certificate bearing Registration Number: 29AMKPP8168J1Z5 in so far as the petitioner is concerned.
d) Issue any other Writ or direction deemed fit in the facts and circumstances the case in the interest of justice and equity including the cost of this Writ Petition.".
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner has obtained the GST registration certificate on 21.12.2021 and amended GST registration certificate on 12.04.2022. The respondent No.4 issued a show-cause notice dated 28.11.2024, which was sent to the petitioner via email and the same went unnoticed by the petitioner. However, due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not reply to the said notice and consequently the respondent proceeded to pass the impugned ex- HC-KAR NC: 2025:KHC:52526 parte order dated 10.03.2025 cancelling the GST registration of the petitioner. Thereafter, the respondent No.3 issued an intimation dated 19.04.2025 quantifying total tax payable by the petitioner as Rs.61,04,162/-. Subsequently, the petitioner filed an appeal against the aforesaid impugned order dated 10.03.2025 and the same was allowed and the petitioner’s GST registration was restored vide Order dated 07.07.2025 passed by the respondent no.2 under Section 107(11) of the KGST Act, 2017 for short ‘the Act’. Subsequently, on 07.08.2025, the respondent no.2 passed suo- moto rectification order under Section 161 of the Act dismissing the petitioners appeal and upheld the cancellation order dated 10.03.2025. Aggrieved by the impugned orders, the petitioner is before this Court by way of the present petition.
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
Though the petitioner preferred an appeal and the same was dismissed vide rectification order dated 07.08.2025 in the light of the specific assertion on the part of the petitioner that his inability and omission to reply to the show-cause notice was HC-KAR NC: 2025:KHC:52526 due to bonafide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the concerned respondents in order to provide one more opportunity to the petitioner.
In so far as dismissal of the appeal filed by the petitioner is concerned, since the 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.
Learned counsel for the petitioner submits that if the impugned order of cancellation is set aside, the petitioner would file the returns and also pay up to date taxes.
The aforesaid submission of learned counsel for the petitioner is placed on record.
In the result, I pass the following: ORDER i. The Writ Petition is allowed. HC-KAR NC: 2025:KHC:52526 ii. The impugned order at Annexure-H dated 07.08.2025 issued by respondent No.2 is hereby quashed.
iii. The respondents are directed to reinstate/restore the GST registration of the petitioner within four weeks from today, subject to the petitioner filing GST returns and paying up to date tax together with interest and penalty within the aforesaid period of four weeks from the date of receipt of a copy of this order.
iv. It is needless to state that this order is made in the peculiar/special facts and circumstances obtaining in the instant case and this order cannot be treated as a precedent nor shall have any precedential value for any other purpose, whatsoever. (S.R.KRISHNA KUMAR) JUDGE
NBM List No.: 2 Sl No.: 11
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.