Sri Veerappa G C vs. The Assistant Commissioner

Copy of the Form Show Cause notice dated 27.09.2023 is enclosed and marked as Annexure- АЗ.

Copy of the Form DRC-01 dated 27.09.2023 is enclosed and marked as Annexure - A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the intimation issued under section 73(5) in Form DRC-01A of the Act dated 19.09.2023 vide Office NO. ACCT/LGSTO/465/DVG/U.s61/DRC-01A/2023-24 by the Respondent No.1 Copy of the DRC-01A dated 19.09.2023 is enclosed and marked as Annexure -A5. vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Order in Original passed under section 73(9) of the Act dated 21/02/2024 vide No: ACCT/LGSTO- 465/DVG/Order-650(18-19)/T-/2023-24 passed by Respondent No.1 i.e., the Assistant Commissioner of Commercial Tax. Copy of the Order in Original vide Order No. dated 21/02/2024 vide No: ACCT/LGSTO-465/DVG/Order-650(18-19)/T-/2023- 24 is enclosed and marked as Annexure-B1. viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the GST Form DRC-07 bearing Reference No. ZD290224056768 dated 23.02.2024 issued by the Respondent HC-KAR NC: 2025:KHC:46885 No.1.Copy of the DRC-07 dated 23.02.2024 is enclosed and marked as Annexure -B2. ix) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice issued under section 73 of the Act dated 12.12.2023 vide Office No. ACCT/LGSTO- 465/DRC-01/2023-24 issued by the Respondent No.

Copy of the Form Show Cause notice dated 12.12.2023 is enclosed and marked as Annexure - B3. x) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice issued under section 73 of the Act dated 12.12.2023 vide Office No. ACCT/LGSTO- 465/DRC-01/2023-24 issued by the Respondent No.

Copy of the Form Show Cause notice dated 12.12.2023 is enclosed and marked as Annexure - B3. xi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the intimation issued under section 73(5) in Form GST DRC-01A of the Act dated 27.11.2023 vide Office NO.ACCT/LGSTO/465/DVG/U.s61/DRC-01A/2023- 24 by the Respondent No.1 Copy of the DRC-01A dated 27.11.2023 is enclosed and marked as Annexure -B5. xii) Declare that the impugned Notification No.9/2023-CT dated 31.03.2023 is illegal and ultra vires the provisions of section 168A of Central Goods and Service Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification No.9/2023-CT dated 31.03.2023 referred as Annexure - C1. xiii) Declare that the impugned Notification No. 56/2023-CT dated 28.12.2023 is illegal and ultra vires the provisions of section 168A of Central Goods and Service Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification No. 56/2023-CT dated 28.12.2023 referred to as Annexure - C2. HC-KAR NC: 2025:KHC:46885 xiv) Declare that the impugned Notification (06/2023) dated 06.04.2023 is illegal and ultra vires the provisions of section 168A of Karnataka Goods and Service Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification (06/2023) dated 06.04.2023 referred to as Annexure - D1. xv) Declare that the impugned Notification (25/2023) dated 29.12.2023 is illegal and ultra vires the provisions of section 168A of Karnataka Goods and Service Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification (25/2023) dated 29.12.2023 referred to as Annexure - D2. xvi) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.”

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

A perusal of material on record will indicate that pursuant to intimations in Form GST DRC-01A dated 19.09.2023 and 27.11.2023 for tax periods 2017-18 and 2018-19 respectively, the 1ST respondent issued a show-cause notices dated 27.09.2023 and 12.12.2023 under Section 73(1) of the CGST/KGST Act, 2017 for tax periods 2017-18 and 2018-19 respectively, alleging that there is a discrepancy between the taxable supply under MNREG and GSTR 3B. Since the petitioner had not replied to the said Notices, the 1st respondent passed adjudication orders dated HC-KAR NC: 2025:KHC:46885

2023 and 21.02.2024 under Section 73(9) of the CGST / KGST Act for tax periods 2017-18 and 2018-19 respectively confirming a total demand of Rs.9,89,500/- and Rs.7,23,547/- respectively, along with interest and Penalty, without granting an opportunity of personal hearing to the petitioner. Thereafter, the 1st respondent initiated recovery proceedings against the petitioner by issuing third party attachment notice dated 16.04.2024 to the petitioner’s banker. The petitioner only on receiving the aforesaid notice, realized regarding the said ex-parte impugned adjudication orders. Aggrieved by the impugned orders, the petitioner filed an appeal dated 17.05.2024 and 31.05.2024 respectively. Subsequently the 2nd respondent passed orders dated 07.06.2024 and 18.10.2024 under section 107(11) of The Act for tax periods 2017-18 and 2018-19 respectively, dismissing the said appeals on ground of limitation. Aggrieved by the aforesaid orders, the petitioner is before this Court by way of the present petition.

In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the aforesaid notices were uploaded under the tab ‘additional notices and orders’ in the common GST HC-KAR NC: 2025:KHC:46885 portal and the same went unnoticed by the petitioner and hence the petitioner could not submit reply/ documents to the same which has culminated in the impugned ex-parte order and if an opportunity is given to the petitioner to file reply/ documents to the said notices by setting aside the impugned ex-parte order the petitioner would do so and the 1st respondent may be directed to directed to pass fresh order after considering the replies/ documents filed by the petitioner. It is further submitted that the impugned proceedings initiated pursuant to the impugned show cause notices dated 27.09.2023 and 12.12.2023 are barred by limitation under Section 73(10) of the KGST Act and on this score also the impugned orders are liable to be set aside.

Per contra, learned AGA for the respondents – revenue submits that the period of limitation has been extended by the respondents vide Notification No. 13/2022 dated 05.07.2022, Notification Nos. 9 and 56 of 2023 dated 31.03.2023 and 08.12.2023 respectively and as such, it cannot be said that the proceedings are barred by limitation.

Learned counsel for the petitioner would invite my attention to the Petition in Special Leave Appeal (C) No. 4240/2025 HC-KAR NC: 2025:KHC:46885 pending before the Apex Court in order to contend that the validity of the said Notifications are seized by the Apex Court and pending adjudication before the Hon’ble Supreme Court.

In view of the aforesaid facts and circumstances and the submissions made by both sides which will indicate that the validity of the aforesaid Notifications are seized by the Apex Court and which will have an impact / bearing on the impugned proceedings, I am of the view that one more opportunity is required to be granted in favour of the petitioner by setting aside the impugned orders and remitting the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions.

Under these circumstances, in order to avoid multiplicity of proceedings and to ensure that there are no conflicting orders, I deem it just and appropriate to direct the 1st respondent to reconsider the matter afresh and pass a fresh adjudication orders in accordance with law after disposal of Special Leave to Appeal (C) No.4240/2025 by the Apex Court.

In the result, I pass the following:- ORDER