Brand Recall vs. The Assistant Commissioner Of Commercial Taxes - Karnataka High Court, 12 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:47137 WP No. 19752 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19752 OF 2025 (T-RES) BETWEEN: BRAND RECALL A SOLE PROPRIETORSHIP CONCERN, REPRESENTEDBY ITS PROPRIETOR, MR. SHRIDHAR VAMAN KAMAT SON OF MR. VAMAN MANJUNATHKAMAT AGEDABOUT 52 YEARS, HAVINGITS PLACE OF BUSINESS AT NO G2, DASRADHA KRUPA 7TH CROSS, KAGGADASAPURA CV RAMAN NAGAR, BENGALURU – 560 093 EMAIL: srivastalaw@gmail.com PHONE: +91 89714 70744 …PETITIONER (BY SRI. PRADYUMNA HEJIB, ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO – 35, NO.- 58, 1ST FLOOR, HAL 2ND STASGE, DEFENCE COLONY 100 FEET ROAD, INDIRANAGAR BENGALURU – 560 038 …RESPONDENT (BY SMT. JYOTI M. MARADI, HCGP) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER SUCH APPROPRIATE WRIT/S TO QUASH THE ORDER PASSED BY THE RESPONDENT UNDER SECTION 73(9) OF THE KGST/CGST ACT, READ WITH SECTIONS 61 AND 50 OF THE KGST / CGST ACT, DATED 24.01.2024 (ANNEXURE-A). Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:47137 WP No. 19752 of 2025 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:- “(a) Issue a Writ in the nature of Certiorari or any other such appropriate Writ/s to quash the order passed by the Respondent under Section 73(9) of the KGST/CGST Act, read with Sections 61 and 50 of the KGST / CGST, dated 24.01.2024 (Annexure – A); (b) Pass any such other order/s, direction/s, etc., as deemed fit in the facts and circumstances of the above case;”

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

A perusal of material on record will indicate that pursuant to notice in Form GST DRC-1A dated 30.10.2023, the petitioner did not submit any reply/response. Subsequently, the respondent issued a show-cause notice dated 09.12.2023 under Section 73 of the CGST/KGST Act, 2017 alleging that there was an excess claim of ITC. Since the petitioner did not submit his reply to the said show-cause notice also, the respondent proceeded to HC-KAR NC: 2025:KHC:47137 pass the impugned order dated 24.01.2024 under Section 73(9) of the KGST Act, 2017 confirming the total demand of Rs.2,96,513/- including the tax, interest and penalty.

Learned counsel for the petitioner submits that the petitioner did not receive any notices including show cause notice and hence couldn't submit replies/ documents to neither the intimation notice nor the show-cause notice under section 73 of the CGST/KGST Act, 2017 and resultantly couldn’t contest the proceedings. Aggrieved by the said order the petitioner having no option has approached this Court by way of the present petition interalia contending that the inability and omission on the part of the petitioner to submit a reply to the pre-intimation notice and show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings. HC-KAR NC: 2025:KHC:47137

Per contra, learned counsel 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, the counsel for the petitioner submits that the petitioner did not receive any notices including show cause notice and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order.

Under these circumstances, having regard to the specific assertion on the part of the petitioner that his inability and omission to submit replies and 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 24.01.2024 and remitting the matter back to the respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 09.12.2023. HC-KAR NC: 2025:KHC:47137

In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order dated 24.01.2024 passed by the respondent under 73(9) of the KGST Act, 2017at Annexure- A is hereby set aside. (iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 09.12.2023 issued under section 73 of the CGST/KGST Act, 2017. (iv) The petitioner is directed to appear before the respondent on 11.12.2025 without awaiting further notice from the respondent. (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the first respondent who shall provide sufficient and reasonable opportunity to the petitioner HC-KAR NC: 2025:KHC:47137 and hear them and proceed further in accordance with law. (vi) In the event, the Petitioner does not appear before the respondent on 11.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 2 Sl No.: 50