Shri Handenahalli Buddappa Krishnappa vs. Union Of INDIA

In this petition, the petitioner seeks for the following reliefs:- "The petitioner therefore, in the context and circumstances, as enumerated above, is at the mercy of this Hon'ble Court against the arbitrary and excessive authority of the executive action. WHEREFORE, respectfully prays that this Hon'ble Court may be pleased to; a) Issue a writ of certiorari or any other appropriate writ, order or direction, quashing the impugned Order-in-Original No. ACCT(P)/LGSTO- 015/DRC07/2023-24 dated 21.03.2024 (Annexure- A), b) Issue a writ of certiorari or any other appropriate writ, order or direction, quashing the impugned Notification No. 9/2023-CT dated 31.03.2023 and No. 56/2023-CT dated 28.12.2023, at Annexure B and Annexure-C respectively, and consequently the corresponding State notifications, Notification No. 06/2023, FD CS 2023 dated 06.04.2023 and Notification No. 25/2023, FD 20 CSL 2023, dated 29.12.2023, at Annexure-D and Annexure E, respectively, holding them as ultra vires, arbitrary, and without juri iction; or, the Hon'ble Court, in its wi om and magnanimity, may grant any such other order(s), as this Hon'ble Court deems fit upon the above enumerations of law, facts and circumstance in the interest of justice." HC-KAR NC: 2025:KHC:52210

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 pursuant to an intimation at Annexure F in Form GST DRC- 01A dated 11.12.2023, the 4th respondent issued a show- cause notice dated 21.12.2023 under Section 73(1) of the CGST/KGST Act, 2017 alleging that there is discrepancies in tax liability. Since the petitioner had not replied to the said Notices, the 4th respondent passed an adjudication order dated 21.03.2024 under Section 73 of the CGST / KGST Act confirming a total demand of Rs.11,80,656/- along with interest and Penalty, without granting an opportunity of personal hearing to the petitioner. Aggrieved by which, the petitioner is before this Court by way of the present petition.

In addition to reiterating the various contentions urged in the petition and referring to the material on record, HC-KAR NC: 2025:KHC:52210 learned counsel for the petitioner submits that the petitioner did not receive the aforesaid notices issued by the respondents and hence could not submit reply/ documents to the same which has culminated in the impugned ex-parte order and if an opportunity is given to the petitioner to file reply/ documents to the said notices by setting aside the impugned ex-parte order the petitioner would do so and the 4th respondent may be directed to pass fresh order after considering the replies/ documents filed by the petitioner. It is further submitted that the impugned proceedings initiated pursuant to the impugned show cause notice dated 21.12.2023 is barred by limitation under Section 73(10) of the KGST Act and as such, the availability of equivalent, efficacious and alternative remedy by way of filing of an appeal under Section 107 of the CGST / KGST Act would not come in the way of the petitioner prosecuting the present petition.

Per contra, learned counsel for the respondents – revenue submits that the period of limitation has been HC-KAR NC: 2025:KHC:52210 extended by the respondents vide Notification No. 13/2022 dated 05.07.2022, Notification Nos. 9 and 56 of 2023 dated 31.03.2023 and 08.12.2023 respectively and as such, it cannot be said that the proceedings are barred by limitation.

Learned counsel for the petitioner would invite my attention to the Petition in Special Leave Appeal (C) No. 4240/2025 pending before the Apex Court in order to contend that the validity of the said Notifications are seized by the Apex Court and pending adjudication before the Hon’ble Supreme Court.

In view of the aforesaid facts and circumstances and the submissions made by both sides which will indicate that the validity of the aforesaid Notifications are seized by the Apex Court and which will have an impact / bearing on the impugned proceedings, I am of the view that one more opportunity is required to be granted in favour of the petitioner by setting aside the impugned adjudication HC-KAR NC: 2025:KHC:52210 order and remitting the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions.

Under these circumstances, in order to avoid multiplicity of proceedings and to ensure that there are no conflicting orders, I deem it just and appropriate to direct the 2nd respondent to reconsider the matter afresh and pass a fresh adjudication order in accordance with law after disposal of Special Leave to Appeal (C) No.4240/2025 by the Apex Court.

In the result, I pass the following:- ORDER