Sagar Manjunatha Subramanya vs. State Of Karnataka - Karnataka High Court, 05 December 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:51181 WP No. 35042 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 05TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 35042 OF 2025 (T-RES) BETWEEN: 1. SAGAR MANJUNATHA SUBRAMANYA SON OF MANJUNATHA K AGED ABOUT 47 YEARS, RESIDING AT NO. 48-2, BHAGYALAKSHMI LAYOUT, B H ROAD, SAGAR, SHIMOGA, KARNATAKA – 577 401. [INSOFAR AS PROPRIETORSHIP CONCERN] …PETITIONER (BY SRI. SAMEER GUPTA, ADVOCATE) AND: 1. STATE OF KARNATAKA THROUGH ITS SECRETARY, MINISTRY OF FINANCE, ROOM NO. 208, 2ND FLOOR, VIDHANA SOUDHA, BENGALURU-01. Digitally signed by SREEDHARAN BANGALORE SUSHMA LAKSHMI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:51181 WP No. 35042 of 2025 2. COMMISSIONER OF COMMERCIAL TAXES, KARNATAKA, VANIJYA THERIGE KARYALAYA-1, 1ST FLOOR, GANDHINAGAR BENGALURU – 560 009. 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT), 12TH CROSS, 'A' BLOCK, GOPALAGOWDA EXTENSION, SHIVAMOGGA, KARNATAKA – 577 205. …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT, ORDER OR DIRECTION IN THE NATURE OF CERTIORARI QUASHING THE IMPUGNED ORDER OF ADJUDICATION PASSED UNDER SECTION 74(9) OF THE IGST/KGST/CGST ACT, 2017 VIDE NO. ACCT(AUDIT-3):Smg:T:2025-26 DATED 19.08.2025 (ANNEXURE-A) PASSED BY THE RESPONDENT NO.3 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 - 3 - HC-KAR NC: 2025:KHC:51181 WP No. 35042 of 2025

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:- "i.Issue a writ, order or direction in the nature of certiorari quashing the impugned Order of Adjudication passed under Section 74(9) of the IGST/KGST/CGST Act, 2017 vide No. ACCT(Audit- 3): Smg: T:2025-26 dated 19.08.2025 (Annexure-A) passed by the Respondent No.3. ii. Issue a writ, order or direction in the nature of certiorari quashing the impugned summary of the order in Form GST DRC-07 vide No.ZD2908250683009 (Annexure-B) dated 19.08.2025, passed by the Respondent No.3. iii. Issue a writ, order or direction in the nature of certiorari quashing the show cause notice vide No.ACCT(Audit-3): Smg:T:2024-25 (Annexure-C) dated 24.05.2024 issued by the Respondent No.3 under Section 74(1) of the CGST and KGST Act. iv. Issue a writ, order or direction in the nature of certiorari quashing the summary notice Form GST DRC-01 vide Reference No.ZD2905240818490 (Annexure-D) dated 24.05.2024 issued by the Respondent No.3 under Rule 142(1) of the CGST and KGST Rules. V. Issue any other writ order or direction, which this Hon'ble Court may deem fit and proper under the facts and circumstances of the present case; HC-KAR NC: 2025:KHC:51181 vi. Grant costs and interest; and vii. Grant such further and other reliefs as the nature and circumstances of the case may require."

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

A perusal of the material on record will indicate that the respondent having issued a show cause notice dated 24.05.2024 under Section 74(1) of the GST Act r/w Section 73(9), 122(2)(a) and Rule 142 of the GST Rules, 2017, the petitioner submitted a reply, but did not appear for personal hearing when called upon to do so by the respondent No.3. 4. It is in this context, it is submitted that due to bona fide reasons, unavoidable circumstances and sufficient cause, the petitioner could not appear for personal hearing as required under Section 75(4) of the CGST Act and as such, if the impugned order is set aside and the matter remitted back to the respondent No.3 for reconsideration afresh in accordance with law, the petitioner would appear for personal hearing and produce additional documents, pleadings and contest the matter on merits. HC-KAR NC: 2025:KHC:51181

Per contra, learned High Court Government Pleader for respondents submits that there is no merit in the petition and the same is liable to be dismissed.

A perusal of the impugned order indicates that the third respondent has proceeded to pass the impugned order, by issuing show cause notice. The petitioner did not avail the opportunity of personal hearing. However, in view of the specific submission made on behalf of the petitioner that his inability and omission to appear for personal hearing and file additional replies and documents was due to bona fide reasons, unavoidable circumstances and sufficient cause, I deem it just and proper to adopt a justice oriented approach and set aside the impugned order at Annexures-A and B and remit the matter back to the respondent No.3 for reconsideration afresh, in accordance with law.

Accordingly, I pass the following:- ORDER (i) The Writ Petition is hereby allowed. HC-KAR NC: 2025:KHC:51181 (ii) The impugned order at Annexures-A and B dated 19.08.2025, impugned show cause notice at Annexure-C and impugned summary notice at Annexure-D dated 24.05.2024 are hereby set aside. (iii) The matter is remitted back to the respondent No.3 for reconsideration afresh, in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit additional replies, pleadings, documents etc., which shall be considered by the respondent No.3, who shall provide sufficient and reasonable opportunity to the petitioner and also an opportunity of personal hearing and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE Bss, List No.: 2 Sl No.: 12