M/S Vidya Silks vs. The Commercial Tax Officer, Lgsto-15 - Karnataka High Court, 28 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:49741 WP No. 35432 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 35432 OF 2025 (T-RES) BETWEEN: 1. M/S VIDYA SILKS, 4TH WARD, BEHIND PANCHAYATI OFFICE, DOMMASANDRA, BENGALURU - 562 125 PROPRIETORSHIP CONCERN REPRESENTED BY AMMAYYAPPA SOMASHEKAR, S/O AMMAYAPPA, AGED ABOUT 45 YEARS RESIDING AT 4TH WARD, PANCHAYATI OFFICE, DOMMASANDRA, BANGALORE - 562 125 …PETITIONER (BY SRI. Y.C. SHIVAKUMAR, ADVOCATE) AND: 1. THE COMMERCIAL TAX OFFICER, LGSTO-15, BMTC BUILDING, 6TH BLOCK, 6TH FLOOR, KORAMANGALA, BENGALURU - 560 095 …RESPONDENT (BY SMT. JYOTI M. MARADI, HCGP) Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:49741 WP No. 35432 of 2025 THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING QUASHING THE IMPUGNED ORDER OF ADJUDICATION IN FORM GST DRC-07, DATED 29-07-2024 BEARING NO.CTO/LGSTO-015/DRC- 07/2024-25, DATED 29-07-2024, PASSED BY THE RESPONDENT, AS AT ANNEXURE-A. 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, petitioner seeks the following reliefs: "WHEREFORE, the Petitioner humbly prays that this Hon'ble Court may be pleased to grant the following relief/(s), in the interest equity and justice: A. Issue a Writ of Certiorari or any other Writ or Order or direction in the nature of Certiorari quashing the Impugned Order of Adjudication in Form GST DRC-07, dated 29-07-2024 bearing No.CTO/LGSTO-015/DRC-07/2024-25, dated 29-07- 2024, passed by the Respondent, as at ANNEXURE- A. B. To relegate the matter to the level of show cause notice so that the Petitioner would produce the books of accounts before the Respondent; and C. Grant any other relief that this Hon'ble Court deems fit in the facts and circumstances of the case including costs, in the interest of justice and equity."

A perusal of the material on record will indicate that on 25.03.2024, the respondent issued a show cause HC-KAR NC: 2025:KHC:49741 notice respectively to the petitioner under Section 73(1) of the KGST Act, to which the petitioner did not submit a reply, as a result of which, the respondent proceed to pass the impugned Adjudication Order at Annexure - A dated 29.07.2024 against the petitioner who is before this Court by way of the present petition.

Learned counsel for the petitioner submits that due to inability and omission to submit replies and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, and hence couldn't submit replies/ documents to neither the pre-intimation notice nor the show-cause notice under section 73(1) of the CGST/KGST Act, 2017 and resultantly couldn’t 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, HC-KAR NC: 2025:KHC:49741 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 respondent 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 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 and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order. HC-KAR NC: 2025:KHC:49741

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 29.07.2024 remitting the matter back to 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 25.03.2024. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed.

(ii) The impugned order dated 29.07.2024 _passed by the respondent under Section 73(9) of the KGST Act, 2017 at Annexure – A is hereby set aside.

(iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law HC-KAR NC: 2025:KHC:49741 from the stage of petitioner submitting its reply to the notice dated 25.03.2024 issued under section 73(1) of the CGST/KGST Act, 2017 at Annexure – D.

(iv) The petitioner is directed to appear before the respondent on 19.12.2025 without awaiting further notice from the respondent.

(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 the respondent on 19.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE BSV List No.: 2 Sl No.: 13