M/S Furnaffair vs. Assistant Commissioner Of Commercial Tax - Karnataka High Court, 24 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:48425 WP No. 16712 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16712 OF 2025 (T-RES) BETWEEN: 1. M/S FURNAFFAIR HAVING ITS OFFICE AT NO.724, MODI HOSPITAL ROAD, WEST OF CHORD ROAD, 2ND STAGE, BASAVESHWARANAGAR, BANGALORE-560079 REPRESENTED BY ITS PROPRIETOR, MR NATARAJ GOWRISH SASAL, AGED ABOUT 45 YEARS, S/O S S NATARAJ, R/AT B 104, RMZ LATITUDE, BELLARY ROAD, AMRUTHNAGAR, NEAR GODREJ APARTMENT, SAHAKARNAGAR P.O. BANGALORE-560092 …PETITIONER (BY SMT. LAKSHMI MENON, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF COMMERCIAL TAX LOCAL GOODS AND SERVICE TAX OFFICE-071, ADHICHUNCHANAGIRI MUTT BUILDING, 2ND FLOOR, MUNUVANA, Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:48425 WP No. 16712 of 2025 VIJAYANAGAR, BANGALORE-560040 2. COMMERCIAL TAX OFFICER LSGTO-071 VIJAYANAGAR, BENGALURU-560040 …RESPONDENTS (BY SMT. JYOTHI M. MARADI, HCGP) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A. SET ASIDE THE FORM DRC-01 DTD 30.04.24 BEARING NO. CTO/LGSTO- 071/DRC-01/T. NO. 301/2024-25 FOR THE FY 2019-2020 ISSUED BY THE 24 RESPONDENT (ANNEXURE-E) 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

ORAL ORDER In this petition, the petitioner seeks following reliefs: “A. Issue a writ of certiorari or order or direction in the nature of Certiorari to set aside the Form DRC-01 dated 30.04.2024 bearing no. CTO/LGSTO-071/DRC- 01/T. No. 301/2024-25 for the FY 2019-2020 issued by the 2nd Respondent (Annexure-E); B. Issue a writ of certiorari or order or direction in the nature of Certiorari to set aside the summary SCN in HC-KAR NC: 2025:KHC:48425 FORM GST DRC-01 dated 25.04.2024 for FY 2019- 2020 issued by the 2nd Respondent (Annexure-E1); C. Issue a Writ of Certiorari or order or direction in the nature of certiorari to quash the impugned order passed by the 1" Respondent dated 30.08.2024, bearing Ref no. CTO/LGSTO-71/DRC-07/T- 7/38/2024-2025 for the FY 2019-2020 (Annexure - F); D. Issue a Writ of Certiorari or order or direction in the nature of certiorari to quash the impugned summary order passed by the 1" Respondent dated 30.08.2024, bearing Ref no. ZD2908241127561 for the FY 2019- 2020 (Annexure-F1); and E. Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of this case, in the interest of justice and equity."

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

A perusal of the material on record will indicate that the second respondent initiated proceedings under Section 73 of the KGST Act, 2017 and issued intimation notice to the petitioner to file its reply. Subsequently, the second respondent issued show-cause notice in Form GST DRC-01 as per section 73 of the KGST Act, HC-KAR NC: 2025:KHC:48425 2017. The petitioner filed its reply dated 14.02.2024 to the aforesaid show-cause notice. Pursuant to the same, the second respondent without considering the reply filed by the petitioner and not providing the petitioner a sufficient opportunity of personal hearing under Section 75(4) of the KGST Act, 2017 proceeded to pass the impugned order at Annexure-F dated 30.08.2024, which is assailed in the present petition.

Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 14.02.2024 and the second respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure-F dated 30.08.2024 and the impugned order deserves to be quashed and the matter is remitted back to the second respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit a reply to the show-cause notice/ produce necessary documents and thereafter to pass appropriate orders. HC-KAR NC: 2025:KHC:48425

Per contra, learned HCGP for the respondents would support the impugned order and submit that there is no merit in the petition and the same is liable to be dismissed.

A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the second respondent failing to provide a reasonable opportunity to produce necessary documents, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned order and remit the matter back to the second respondent for reconsideration afresh in accordance with law by issuing certain directions.

In the result, I pass the following: ORDER i) The Writ Petition is allowed; HC-KAR NC: 2025:KHC:48425 ii) The impugned order passed by the second respondent at Annexure-F dated 30.08.2024 is hereby set aside; iii) The matter is remitted back to the second respondent for reconsideration afresh in accordance with law. iv) The second respondent is directed to consider the reply dated 14.02.2024 and provide reasonable opportunity of personal hearing to the petitioner and thereafter, proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE SJK List No.: 2 Sl No.: 6