M/S Malu Wires vs. The State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:- “(i) Issue a Writ of Certiorari quashing Show Cause Notice bearing No.JCCT/VIG/CTO-33/ADJ-01/2023- 24 dated 03.05.2024 issued by the Respondent No.4 (ANNEXURE – A) for being without the authority of law. (ii) Issue a Writ of Certiorari quashing Order-In-Original (OIO) File Case No. AD290824015734U/2024-2025 dated 14.08.2024 passed by the Respondent No.2 (ANNEXURE – B), for being without the authority of law. (iii) To issue Order(s), Directions, Writ(s) or any other relief, holding that the actions of the Respondent are HC-KAR NC: 2025:KHC:45455 illegal and award a Cost appropriate as this Hon’ble Court deems it fit and proper in the facts and circumstances of the case in the interest of justice and equity. (iv) To issue Order(s), Directions, Writ(s) or any other relief as this Hon’ble Court deems it fit and proper in the facts and circumstances of the case in the interest of justice and equity.”
Heard the learned counsel for the petitioner and the learned AGA for the 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 2019-20, 2020-21, 2021-22, 2022-23 and 2023-24. The Respondent initiated proceedings under Section 73 of the Act CGST/KGST Act, 2017 and issued intimation notice to the Petitioner to file reply. Subsequently, the 4th respondent issued show-cause notice dated 03.05.2024 in Form GST DRC-01 as per Section 73 read with Section 75, Section 122, Section 50 of the KGST Act, 2017 read with Rule 142 of the KGST Rules, 2017 read with Section 6 of CGST read with Sections 4 and 20 of IGST. An Endorsement HC-KAR NC: 2025:KHC:45455 dated 29.06.2024 was issued by respondent No.3 stating that the case of the petitioner has been transferred to the Audit Department of Respondent No.
The Petitioner filed its reply dated 05.07.2024 to the aforesaid endorsement. Pursuant to the same, respondent No.2/3 issued purported assignment for adjudication on 03.08.2024. However, the petitioner was not aware of the said assignment. Respondent No.2 issued personal hearing notice dated 06.08.2024, to which the petitioner filed a reply vide email dated 06.08.2024. 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 orders at Annexure - B dated 14.08.2024, which are assailed in the present petition.
Learned counsel for the petitioner submits that the Petitioner had filed its reply dated 05.07.2024 and 06.08.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure - B dated 14.08.2024 and the impugned order deserves to be quashed and the matter is remitted back to the respondent for reconsideration of the matter afresh in HC-KAR NC: 2025:KHC:45455 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 AGA for the respondent would support the impugned order 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.
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 orders have 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 HC-KAR NC: 2025:KHC:45455 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 order passed by 2nd respondent at Annexure –B dated 14.08.2024 is hereby set aside; iii) The petitioner shall appear before the 2nd respondent on 05.12.2025, on which date, he shall submit his 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 05.12.2025, the 2nd respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. HC-KAR NC: 2025:KHC:45455 v) In the event, the Petitioner does not appear before the 2nd respondent on 05.12.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 11
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.