Nagaraja Pwd Contractor vs. The Asst. Commissioner Of Commercial Taxes
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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 or a direction in the nature of a Writ of Certiorari quashing the Order dated.21.12.2023 No. ACCT/LGTSO-183/CB.Pur/DR- /MENREGAT/T.20539/2023-24 (Annexure-C) which has been issued by the Respondent Authority without seal and signature and in violation of the principles of natural justice. (b) The DRC-07 dated 21.12.2023 No. 251/DRC- 07/MENREGA/2023-24 (Annexure-B), which has been issued by the Respondent Authority without seal and signature and in violation of the principles of natural justice; (c) Issue a writ of mandamus or any other appropriate writ, order, or direction directing the Respondents to defreeze the Petitioner's bank account forthwith, the attachment being solely based on the Impugned order which is unsustainable in law; (d) Issue a Writ of Mandamus or a direction in the nature of a Writ of Mandamus directing the Respondent Authority to forthwith release and de-freeze the bank account of the Petitioner, as the continued freezing of the account has crippled the Petitioner's ability to carry on day to-day business transactions and is HC-KAR NC: 2025:KHC:47480 causing irreparable hardship, despite the impugned order itself being under challenge before this Hon'ble Court; (e) To pass any such other Writ, Order or Direction as this Hon'ble court might deem fit to be issued in the fact and circumstances of the case in the interest of justice and equity; (f) pass such other order, direction or writ as this Hon'ble Court deems fit.”
Heard learned counsel for the petitioner and learned AGA for the respondent and perused the material on record.
A perusal of the material on record will indicate that pursuant to issuance of Form GST DRC-10A in terms of Section 73(5) of the CGST/KGST Act, 2017 dated 21.09.2023, the respondent issued a show cause notice in Form GST DRC-01 dated 30.09.2023 to the petitioner under Section 73 of the CGST Act, to which also the petitioner did not submit any reply. Under these circumstances, the respondent proceeded to pass the impugned exparte adjudication order dated 21.12.2023 under Section 73 of the CGST/KGST Act, aggrieved by which the petitioner is before this court by way of the present petition. HC-KAR NC: 2025:KHC:47480
It is a specific contention of the petitioner that he did not receive the aforesaid notices. Orders etc, and due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to submit reply and contest the proceedings and as such, it is necessary that the impugned order dated 21.12.2023 is set aside and the matter be remitted back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and to proceed further in the matter. Further, the petitioner was aware of the impugned proceedings only after the respondent issuing Third Party Notice dated 18.08.2025. 5. Per contra learned AGA for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed.
A perusal of the material on record will indicate that though several contentions have been urged by both sides in support of their respective claims, it is an undisputed fact and a matter of record that the petitioner did not submit any replies to the notices issued by the respondent nor did he participate in the HC-KAR NC: 2025:KHC:47480 impugned proceedings, which culminated in the impugned exparte adjudication order in the absence of the petitioner. Further, the petitioner was aware of the impugned proceedings only after the respondent issuing Third Party Notice dated 18.08.2025. Under these circumstances, in order to provide one more opportunity to the petitioner to submit reply to the show cause notice and contest the proceedings, I deem it just and appropriate to adopt justice oriented approach and set aside the impugned order at Annexure- C dated 21.12.2023 and remit the matter back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and contest the proceedings in accordance with law, subject to deposit of 10% of tax amount.
In the result, I pass the following: ORDER (i) The petition is allowed subject to the petitioner depositing 10% of the tax amount before the respondent within a period two weeks from the date of receipt of a copy of this order. (ii) The impugned order at Annexure-C dated 21.12.2023 passed by the respondent is hereby quashed. HC-KAR NC: 2025:KHC:47480 (iii) The matter is remitted back to the respondent for reconsideration afresh from the stage of the petitioner submitting its reply to show-cause notice dated 30.09.2023, in accordance with law. (iv) The petitioner shall appear before the respondent on 22.12.2025 without awaiting further notice from the respondent, failing which the present order shall stand recalled automatically, without further reference to the Bench and without further orders. (v) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents etc., which shall be considered by the respondent, who shall provide sufficient and reasonable opportunity to the petitioner, hear him and proceed further, in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 2 Sl No.: 36
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.