Sri Karimangala Muniswamy Sreerama vs. State Of Karnataka

In this petition, the petitioner seeks following reliefs: i) Issue a writ of certiorari or any other appropriate order or direction to quash order dated 4.2.2025 at Annexure-C passed by the 2nd respondent and consequentially quash the order of cancellation of GST of the petitioner and restore the GST registration; Bearing No.CTO/WinFLANCE-36. /INS-12024-25/4642 dated. 4/2/25 ii) Issue writ of certiorari or any other appropriate order or direction to quashing the recovery proceedings as per Annexure-D; Bearing No. JCCT(wig) CTO (vig) -36. Asign. - Audit 125/2025-26 Detech.31/10/25 iii) Issue writ of mandamus or any other appropriate order or direction directing the respondents to revoke cancellation of GST registration and allow the petitioner to file GST return and pay the tax dues along with applicable fee; and iv) Pass such other and further order as this Hon'ble Court deems fit in the facts and circumstances of the case, in the interest of justice. HC-KAR NC: 2025:KHC:52224

Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.

A perusal of material on record will indicate that the third respondent issued a show-cause notice dated 05.08.2024 under Sections 74 r/w Section 75, 122 and Section 50 of the KGST Act r/w Rule 142 of KGST Rules r/w Section 6 of CGST Act r/w Section 4 and 20 of IGST Act and relevant provisions of GST (Cess) Act. Since the petitioner did not submit his reply to the said show-cause notice, the third respondent proceeded to pass the impugned order dated 04.02.2025 under Section 74(9) of the KGST Act, 2017 confirming the total demand of Rs.2,49,822/- including the tax, interest and penalty.

Learned counsel for the petitioner submits that he was not aware of any of these proceedings until Railways informed him about the blocking of his GST account and hence could not submit replies/ documents to the show- HC-KAR NC: 2025:KHC:52224 cause notice dated 05.08.2024 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 AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

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 HC-KAR NC: 2025:KHC:52224 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 dated 04.02.2025 and 21.10.2025 and remitting the matter back to the third 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 05.08.2024. 7. In the result, I pass the following: ORDER