M/S Digitech Communication vs. The Assistant Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORDER OF ADJUDICATION DATED 27-02-2025 PASSED BY THE RESPONDENT NO.1 VIDE NO. ACCT/LGSTO-1 50/ASSN-15063-1650/2024-25/DRC-07/(634)/ 2024-25/389 IN FORM GST DRC-07 VIDE REFERENCE NO. ZD2902251102080 DATED 27-02-2025 VIDE ANNEXURE-A AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In this petition, the petitioner seeks following reliefs:
"i. Issue a Writ of Certiorari or any other Writ or Order or direction of appropriate nature to call for the records of the case and after securitizing the same, to strike down and quash the order of Adjudication dated 27.02.2025 passed by the Respondent No.1 vide No.ACCT/ LGSTO-150 /ASSN-15063-1650/2024-25 /DRC 07/(634) /2024-25/389 in Form GST DRC-07 vide Reference No:ZD2902251102080 dated 27.02.2025 vide Annexure-A. HC-KAR NC: 2025:KHC:52521 ii. Issue a Writ of Certiorari or any other Writ or Order or direction of appropriate nature to call for the records of the case and after scrutinizing the same, to strike down and quash the Show Cause Notice dated 27.11.2024 passed by the Respondent No.1 vide No.ACCT/LGSTO- 150/ASSN-15063-1650/2024-25/DRC-01/(667) in Form GST DRC-01 vide Reference No:ZD291124144350Q dated 27.11.2024 vide Annexure-B.
iii. Issue a Writ of Certiorari or any other Writ or Order or direction of appropriate nature to call for the records of the case and after scrutinizing the same, to strike down and quash recovery notice dated 16-10-2025 bearing No.ACCT/LGSTO-150/DRC-13/2025-26/T.No:4372 in Form GST DRC-13 passed by the Respondent No.1 vide ANNEXURE-C.
iv. Pass any other order or orders as this Hon'ble Court deems fit and proper in the facts and circumstances of the present case.".
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 respondent No.1 issued a show-cause notice dated 27.11.2024 under Section 73 of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice, HC-KAR NC: 2025:KHC:52521 the respondent No.1 proceeded to pass the impugned order dated 27.02.2025 under Section 73(9) of the KGST/CGST Act, 2017 confirming the total demand of Rs.23,02,852/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the said notices were not received by the petitioner and hence, could not submit replies/ documents to the show-cause notice dated 27.11.2024 and resultantly could not contest the proceedings. Aggrieved by the said order, the petitioner having no option has approached 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:52521
Though several contentions have been urged by both sides, 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 order dated 27.02.2025 and remitting the matter back to respondent No.1 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show- cause notice dated 27.11.2024 by imposing cost of Rs.10,000/- on the petitioner payable to the High Court Legal Service Authority.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned order dated 27.02.2025 passed by respondent No.1 under Section 73(9) of the KGST/CGST Act, 2017 at Annexure–A is hereby set aside.
(iii) The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the HC-KAR NC: 2025:KHC:52521 stage of petitioner submitting its reply to the Show Cause notice dated 27.11.2024. (iv) The petitioner is directed to appear before the respondent No.1 on 19.01.2026 without awaiting further notice from respondent No.1. (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 respondent No.1 on 19.01.2026 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
NBM List No.: 2 Sl No.: 9
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.