M/S Sri Sai Poultry Breeding Farm vs. The Assistant Commissioner Of Commercial Tax
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:- “a) Issue a Writ of Certiorari and quash the final order in Form GST DRC-07 bearing Reference No.ACCT/LSGTO-180/ADJUDICATION/ORDER/2A VS. 3B/2023-24 dated 21.03.2024, passed under Section 73 of the CGST/KGST Act, 2017 for the tax period 2018 to 2019, as per Annexure-A, passed by the Respondent No.1 and, b) Pass such other and further order or direction as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interest of justice and equity.”
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 1st respondent issued a show-cause notice dated 19.12.2023 under Section 19.12.2023 of the 73(1) of the CGST/KGST Act, 2017. HC-KAR NC: 2025:KHC:51904 Since the petitioner did not submit his reply to the said show-cause notice, the 1st respondent proceeded to pass the impugned order dated 21.03.2024 under Section 73(a) of the KGST Act, 2017 confirming the total demand of Rs.11,82,269/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the notices and orders were not communicated to the petitioner through prescribed modes and the petitioner was unaware of the online proceedings and hence could not submit replies/ documents to the show-cause notice dated 19.12.2023 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. HC-KAR NC: 2025:KHC:51904
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, the counsel for the petitioner submits that he was unaware of the proceedings as the impugned notice and order was not communicated through prescribed mode and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order.
Under these circumstances, 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 21.03.2024 and remitting the matter back to the 1st 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 19.12.2023 and contest HC-KAR NC: 2025:KHC:51904 the proceedings in accordance with law, subject to payment of cost of Rs.15,000/-.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed, subject to payment of cost of Rs.15,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.
(ii) The impugned order dated 21.03.2024 passed by the 1st respondent under Section 73(9) of the KGST Act, 2017at Annexure –A, is hereby set aside.
(iii) The matter is remitted back to the 1st respondent for reconsideration afresh in accordance with law, from the stage of petitioner submitting its reply to the show- cause Notice 19.12.2023. (iv) The petitioner is directed to appear before the 1st respondent on 12.01.2026 without awaiting further notice from the 1st respondent. HC-KAR NC: 2025:KHC:51904 (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 1st 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 the 1st respondent on 12.01.2026 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 2 Sl No.: 41
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.