M/S Royal Steels vs. Assistant Commissioner Of
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks the following reliefs:
“(a) A Writ of Certiorari or any other appropriate Writ, Order or direction in the nature of Writ of Certiorari for quashing the "Order-in-Original" passed under Section 47(1), 47(2) and 74(1) of the CGST/KGST Act, bearing No.51/2024- 25 GST, dated 27-02-2025, Issued by the Respondent, as at ANNEXURE-A;
(b) A Writ of Certiorari or any other appropriate Writ, Order or direction in the nature of Writ of Certiorari for quashing the "Bank Attachment in Form GST DRC-13-Notice to a third person under Section 79(1)(c)" dated 17-07-2025, as at ANNEXURE-B;
(c) Issue a Writ of Mandamus or any other appropriate Writ, Order or direction in the nature of Writ of Mandamus to relegate the matter to the level of show cause notice for fresh disposal after affording an opportunity of hearing; and
(d) Any other order or direction as deemed fit in the interest of justice and equity.”
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 ASMT-10 dated 10.10.2024, the HC-KAR NC: 2025:KHC:44485 respondent issued an intimation notice under Form GST DRC-01A dated 13.11.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent issued a show-cause notice dated 20.11.2024 under Section 74 of the CGST/KGST Act, 2017 alleging that there was a difference in ITC availed in Form GSTR-3B and GSTR-2A among other discrepancies. Since the petitioner did not submit its reply to the said show-cause notice also, the respondent proceeded to pass the impugned order dated 27.02.2025 under Section 47(1), 47(2) and 74(1) of the KGST Act, 2017 confirming the total demand of Rs.44,41,600/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause couldn't submit replies / documents to neither the pre-intimation notice nor the show-cause notice under Section 74 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 HC-KAR NC: 2025:KHC:44485 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 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, in view of the submission of the learned counsel for the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause the petitioner did not file its reply / documents, the same 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 HC-KAR NC: 2025:KHC:44485 the impugned order dated 27.02.2025 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 20.11.2024. 8. In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned order dated 27.02.2025 passed by the respondent under 74(9) of the KGST Act, 2017 at 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 20.11.2024 issued under section 74(1) of the CGST/KGST Act, 2017 at Annexure – F.
(iv) The petitioner is directed to appear before the respondent on 02.12.2025 without awaiting further notice from the respondent.
(v) 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 HC-KAR NC: 2025:KHC:44485 reasonable opportunity to the petitioner and hear it and proceed further in accordance with law.
(vi) In the event, the petitioner does not appear before the respondent on 02.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 13
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.