M/S Ziniosedge Software Technologies PVT LTD vs. The 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. To issue a WRIT of CERTIORARI, MANDAMUS or any other writ or direction in the nature of a writ quashing the impugned Order bearing No. ACCT(AUDIT)-1.8/T No. 295/2024-25and consequently online generated order under Sec. 73 and summary order in Form DRC-07 bearing reference No. ZD290724060865V, all dated 19.07.2024 (ΑΝΝEXURES 'F' 'G' & 'H'), passed by the Assistant Commissioner of Commercial Taxes, HC-KAR NC: 2025:KHC:47534 (Audit)-1.8, DGSTO-1, in so far as levy of IGST, interest and penalty on the value of export of services discussed above is concerned; and B. 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.”
Heard the learned counsel for the petitioner and the learned HCGP for respondent and perused the material on record.
A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods 2019-20. The 2nd Respondent initiated proceedings u/s. 73 of the Act CGST/KGST Act, 2017 and issued intimation notice in form GST DRC-01A dated 22.05.2024 to the petitioner to file its reply. Subsequently, the 2nd respondent issued show-cause notice in Form GST DRC-01 as per section 73 of KGST Act, calling for explanation with regard to the discrepancies in tax liability. The petitioner filed its reply dated 08.07.2024 to the aforesaid show- cause notice. Pursuant to the same, the respondent without considering the reply filed by the Petitioner and not providing the petitioner sufficient opportunity of personal hearing u/s. 75(4) of the HC-KAR NC: 2025:KHC:47534 Act proceeded to pass the impugned orders at Annexure F dated 19.07.2024, which are assailed in the present petition.
Learned counsel for the petitioner submits that the Petitioner had filed its reply to the show-cause notice dated 08.07.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure-F dated 19.07.2024 and the impugned order deserve to be quashed and the matter may be remitted back to the concerned 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.
Per contra, learned counsel for respondent would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed, especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings. HC-KAR NC: 2025:KHC:47534
A perusal of the material on record including the impugned orders 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 Respondent failing to provide an opportunity for the petitioner 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 orders and remit the matter back to the 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; ii) The impugned orders passed by 2nd respondent at Annexures-F, G and H, all dated 19.07.2024, are hereby set aside; iii) The petitioner shall appear before the 2nd respondent on 12.12.2025, on which date, he shall submit his reply to the show HC-KAR NC: 2025:KHC:47534 cause notice along with relevant documents, pleadings etc., failing which the present order shall automatically stand revived/recalled without reference to the Bench. iv) Upon the petitioner submitting reply along with relevant documents to the show cause notice, on 12.12.2025, the 2nd respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE
BMC List No.: 2 Sl No.: 27
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.