M/S. Sunrise Electroplaters vs. The Assistant Commissinoer Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORDER NO.ZD290425082191C ISSUED RESPONDENT NO.2, ANNEXURE-A CHANDANA B M Location: High Court of Karnataka HC-KAR NC: 2025:KHC:47134 AND ADJUDICATION ORDER DATED 21.12.2023 (REF.NO.ZD291223062017L) – ANNEXURE-B AND ENDORSEMENT NO.ACCT(AUDIT-4.2)/ADJ-ORDER-DRC-07(20-21)2024-25 DATED 30.01.2025 – ANNEXURE-G ISSUED BY RESPONDENT NO. ETC.,
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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:- “i. Issue a writ of certiorari or any other appropriate writ or set aside the (a) Order in GST.AP.No.381/24-25, dated 24.04.2025 vide order No.ZD290425082191C – issued respondent No.2 – ANNEXURE-A,
(b) Adjudication Order dated 21.12.2023 (Ref No.ZD291223062017L) – ANNEXURE-B and (c) Endorsement No.ACCT(Audit- 4.2)/ADJ.ORDER-DRC-07(20-21)/2024-25 dated 30.01.2025 – ANNEUXRE-G issued by Respondent No.1. ii. Issue a writ of mandamus or any other appropriate direction directing the Respondents to afford a personal hearing to the Petitioner and to adjudicate the case a fresh on merits after examining the documents and submissions. HC-KAR NC: 2025:KHC:47134 iii. Grand such other and further reliefs as this Hon’ble Court may deem fit in the facts and circumstances of the case in the interest of justice and equity.”
Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.
A perusal of material on record will indicate that 1st respondent issued an intimation notice in Form GST DRC-01A dated 18.07.2023 to which the petitioner did not file its reply. Subsequently, the 1st respondent issued a show-cause notice dated 21.08.2023 under Section 73(1) of the CGST/KGST Act, 2017 alleging that the petitioner had claimed excess ITC as compared to GSTR-3B and GSTR-2A filed by the Petitioner. Since the petitioner did not submit his reply to the said show-cause notice also, the 1st respondent proceeded to pass the impugned order dated 21.12.2023 under Section 73(9) of the KGST Act, 2017 confirming the total demand of Rs. 44,91,900/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the petitioner did not receive the intimation notice as well as the show- HC-KAR NC: 2025:KHC:47134 cause notice and hence couldn't submit replies/ documents to neither the intimation notice nor the show-cause notice under section 73(1) of the CGST/KGST Act, 2017 and resultantly couldn’t contest the proceedings. Pursuant to receiving the bank attachment notice in GST DRC-13 the petitioner filed an appeal on 25.02.2025 which was dismissed as barred by limitation vide impugned order dated 24.04.2025. It is submitted that since the GST Appellate Tribunal has not been constituted as on today, the petitioner has no option but to approach 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.
Per contra, learned HCGP for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. HC-KAR NC: 2025:KHC:47134
Though several contentions have been urged by both sides, the counsel for the petitioner submits that the said notices were not received by the petitioner and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex- parte order. So also, the appeal filed by the petitioner before the 2nd respondent has been dismissed as barred by limitation.
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 orders dated 21.12.2023 and 24.04.2025 and remitting the matter back to the 1st 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 21.08.2023. 9. In the result, I pass the following: HC-KAR NC: 2025:KHC:47134 ORDER
(i) The petition is hereby allowed. (ii) The impugned order dated 21.12.2023 passed by the 1st respondent under 73(9) of the KGST Act, 2017 at Annexure – B as well as impugned order dated 24.04.2025 passed by the 2nd respondent under Section 107(11) of the KGST/CGST Act, 2017 are hereby set aside.
(iii) The matter is remitted back to the 1st respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 21.08.2023 issued under section 73(1) of the CGST/KGST Act, 2017. (iv) The petitioner is directed to appear before the 1st respondent on 11.12.2025 without awaiting further notice from the 1st 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 and hear them and proceed further in accordance with law. HC-KAR NC: 2025:KHC:47134 (vi) In the event, the Petitioner does not appear before the 1st 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.: 100
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.