M/S Seema Caterers vs. The State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:-
“ (a) Call for Relevant order, direction or a writ, in the nature of WRIT OF CERTIOARI by quashing impugned order of Adjudication dated: 23.07.2024 in the form of GST DRC 07 for the year 2019-20 vide File No.JCCT/ DGSTO— 04/CTO (AUDIT) -4.11/GST(73)/Adjudication Order No.89/2024-25/issued by the 2nd Respondent –The Commercial Tax Officer vide Annexure-K by treating it as unjust, unfair and unfair and ultras vires.
(b) And also pass such other order/direction and further orders as may be deemed necessary on the facts and in the circumstances and probabilities 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 2nd respondent issued a show-cause notice dated 13.05.2024 under Section 73(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice, the 2nd HC-KAR NC: 2025:KHC:49381 respondent proceeded to pass the impugned order dated 23.07.2024 under Section 73(9) read with section 75, Section 122 and Section 50 of the CGST/KGST Act, 2017 confirming the total demand of Rs.1,99,03,617/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the petitioner’s auditor had expired on 18.05.2021 and due to bonafide reasons, unavoidable circumstance and sufficient cause, the petitioner could not submit its replies nor contest the said proceedings, which culminated in the impugned ex-parte order. He
therefore submits that if one more opportunity is provided by setting the impugned order, the petitioner would submit his 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, as regards to the demise of the petitioner’s tax consultant and having regard to the specific assertion on the part of the petitioner that his inability and omission to submit its replies and HC-KAR NC: 2025:KHC:49381 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 23.07.2024 and remitting the matter back to the 2nd respondent for reconsideration afresh in accordance with law to the stage of petitioner submitting reply to the impugned show-cause notice.
In the result, I pass the following: ORDER
(i) Petition is hereby allowed.
(ii) The impugned order at Annexure-K dated 23.07.2024 passed by the 2nd respondent is hereby set aside.
(iii) Matter is remitted back to the 2nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the show cause notice dated 13.05.2024 at Annexure – H1. HC-KAR NC: 2025:KHC:49381 (iv) The petitioner is directed to appear before the 2nd respondent on 16.12.2025 without awaiting further notice from the 2nd respondent.
(v) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 2nd 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 2nd respondent on 16.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
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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.