Clickworks Adtech PVT. LTD. vs. The Assistant Commissioner Of Commercial Taxes - Karnataka High Court, 06 November 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:45014 WP No. 31668 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 31668 OF 2025 (T-RES) BETWEEN: CLICKWORKS ADTECH PVT. LTD., VILLA NO G3 NVT MYSTIC GARDENS ATTIBELE ROAD, IDLABELE BANGALORE – 562 107. REP BY ITS DIRECTOR A SAILAJA. …PETITIONER (BY SRI. VEERESH.M. UPPIN, ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES AUDIT- 4.11, DGSTO 4 BANGALORE DEPARTMENT OF COMMERCIAL TAXES O/O ASSISTANT COMMISSIONER OF COMMERCEAL TAX (AUDIT)-4.11, DGSTO- 4, 5TH FLOOR BMTC COMPLEX, KORAMANGALA BANGALORE – 560 095. …RESPONDENT (BY SRI. K. HEMA KUMAR, AGA) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDER DATED- 19.02.2025 BEARING NO. ACCT (AUDIT)-4.11/ADJ/27/2024-25 PASSED BY THE RESPONDENT (ANNEXURE-C). THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:45014 WP No. 31668 of 2025 CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

“ a) Setting aside the order dated: 19.02.2025 bearing No. ACCT (AUDIT)-4.11/ADJ/27/2024-25 passed by the Respondent (Annexure-C)

b) Issue a Writ of Mandamus directing the Respondent to permit the Petitioner to participate in the proceedings in pursuant to the show cause notice dated: 15.11.2024 bearing Reference No.ZD2911240590510 (ANNEXURE-B)

c) Allow this Writ Petition.

d) Pass such other orders this Hon’ble Court may deem fit.”

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

A perusal of material on record will indicate that the respondent issued an intimation notice under Form GST DRC-01A dated 30.10.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent issued a show-cause notice dated 15.11.2024 under Section 73(1) of the CGST/KGST Act, 2017 alleging that petitioner has claimed excess input tax credit. Since the petitioner did not submit its reply to the HC-KAR NC: 2025:KHC:45014 said show-cause notice also, the respondent proceeded to pass the impugned order dated 19.02.2025 under Section 73(9) of the KGST Act, 2017 confirming the total demand of Rs.15,84,064/- including the tax, interest and penalty.

Learned counsel for the petitioner submits that the Director of the petitioner who resides in Hyderabad was suffering from ill health and hence could not give instructions to file reply to the aforesaid notices and hence it 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. 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 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:45014

Per contra, learned AGA 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 due to bonafide reasons, unavoidable circumstances and sufficient cause and the fact that the petitioner did not file its reply/ documents has culminated in the impugned ex-parte order.

Under these circumstances, having regard to the specific assertion on the part of the petitioner that its 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 19.02.2025 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 15.11.2024. HC-KAR NC: 2025:KHC:45014

In the result, I pass the following: ORDER

(i) The petition is hereby allowed subject to the petitioner depositing cost of Rs.15,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.

(ii) The impugned order dated 19.02.2025 passed by the respondent under 73(9) of the KGST Act, 2017 at Annexure – C 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 15.11.2024 issued under section 73(1) of the CGST/KGST Act, 2017 at Annexure – A.

(iv) The petitioner is directed to appear before the respondent on 04.12.2025 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 respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. HC-KAR NC: 2025:KHC:45014 (vi) In the event, the petitioner does not appear before the respondent on 04.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE SV; List No.: 2 Sl No.: 44