M/S Kmc Constructions LTD vs. The Assistant Commissioner Of Central Tax
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks the following reliefs:
“ (i) Issue a Writ of Certiorari or a writ in the nature of certiorari to quash the impugned order in original bearing No. 150/2024-25/ED3 dated: 05.02.2025 passed by the first Respondent vide Annexure-K.
(ii) Issue a writ of Mandamus or a writ in the nature of mandamus directing the first respondent to provide further opportunity to petitioner and consider all the re plies as also the documents furnished by petitioner including the objection as to the initiation of proceedings under Section 74 in reply to the show cause notice Sl.No.28/2023-24 dated: 13.10.2023 issued by the first Respondent under Section 74 of the GST Act vide Annexure-E.
(iii) To issue any other writ or order as deemed fit by this Hon’ble Court in the facts and circumstances of the case, to meet the interest of justice and equity.”
Heard the learned counsel for the petitioner and learned counsel for respondents 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 2017-18. The Respondent initiated proceedings u/s. 74 of the Act CGST/KGST HC-KAR NC: 2025:KHC:47206 Act, 2017 and issued intimation notice to the petitioner to file reply. Subsequently, the 1st respondent issued show-cause notice in Form GST DRC-01 as per Section 74 of KGST Act, calling for explanation with regard to the discrepancies in tax liability. The petitioner filed its reply dated 27.10.2023 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 a sufficient opportunity of personal hearing u/s. 75(4) of the Act proceeded to pass the impugned order at Annexure – K dated 05.02.2025, 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 13.10.2023 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure – K dated 05.02.2025 and the impugned order deserve to be quashed and the matter is remitted back to the 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:47206
Per contra, learned counsel for respondent would support the impugned order and submits 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.
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 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 order and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions. HC-KAR NC: 2025:KHC:47206
In the result, I pass the following: ORDER i) The petition is hereby allowed;
ii) The impugned order passed by 1st respondent at Annexure – K dated 05.02.2025 is hereby set aside; iii) Petitioner shall appear before the 1st respondent on 11.12.2025, on which date, it shall submit its reply to the Show Cause Notice along with relevant documents. iv) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 11.12.2025, the 1st respondent shall afford reasonable and sufficient opportunity to the petitioner and hear it and proceed further in accordance with law. v) In the event, the petitioner does not appear before the 1st respondent on 11.12.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 56
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.