BharatTaxGST

M/S Avyakath Housing And Constructions PVT LTD vs. The State Of Karnataka

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WP/35363/2024HC KarnatakaGSTCNR KAHC01071657202403 November 2025Bench: S.R.KRISHNA KUMAR7 pages
For Petitioner: SMT HITHA M., ADVOCATEFor Respondent: SRI K HEMA KUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:44030 WP No. 35363 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 35363 OF 2024 (T-RES) BETWEEN: M/S AVYAKATH HOUSING AND CONSTRUCTIONS PVT LTD., HAVING ITS OFFICE AT NO.902, 9TH A CROSS, 6TH MAIN, WOC ROAD, 2ND STAGE, BENGALURU URBAN, KARNATAKA-560086 REPRESENTED BY ITS DIRECTOR, MRS. PRIYANKA SACHINA, AGED ABIYT 39 YEARS. …PETITIONER (BY SMT HITHA M.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA, FINANCE DEPARTMENT, II FLOOR, VIDHANA SOUDHA, BENGALURU-560001, REP BY ITS PRINCIPAL SECRETARY. 2. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ENF). SOUTH ZONE, ROOM NO.604, 6TH FLOOR, A BLOCK, VTK 2, KORAMANGALA, BANGALORE-560046. 3. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 6.3 DGSTO-6, 3RD FLOOR, KIADB BUILDING, 14TH CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA, BENGALURU-560058. Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44030 WP No. 35363 of 2024 …RESPONDENTS (BY SRI K HEMA KUMAR, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE ENTRY NO. (XI) IN NOTIFICATION NO. 11/2017 CENTRAL TAX (RATE) DATED 28.06.2017, AS AMENDED BY NOTIFICATION NO. 01/2018 CENTRAL TAX (RATE) DATED 25.01.2018 (ANNEXURE-A1), AND DIRECT THAT THE BENEFIT OF THE REDUCED RATE OF TAX UNDER ENTRY NO. (XI) IN NOTIFICATION NO. 11/2017 AMENDED BY NOTIFICATION NO. 01/2018 CENTRAL TAX (RATE) DATED 28.06.2017, AS CENTRAL TAX (RATE) DATED 25.01.2018, AS VIOLATIVE OF ARTICLE 14 AND 265 OF THE CONSTITUTION OF INDIA SINCE IT DOES NOT EXTEND THE BENEFIT OF REDUCED RATE OF TAX TO THE LAST LEG OF THE CHAIN OF SUPPLY AND THEREBY. FALLS FOUL OF THE LEGISLATIVE INTENT, IN THE EVENT THAT PRAYER (A) IS NOT GRANTED, THEN, IN THE ALTERNATIVE, READ DOWN ENTRY NO. (XI) IN NOTIFICATION NO. 11/2017 CENTRAL TAX (RATE) DATED 28.06.2017, AS AMENDED BY NOTIFICATION NO. 01/2018 CENTRAL TAX (RATE) DATED 25.01.2018 (ANNEXURE-A1), AND DECLARE THAT THE BENEFIT OF THE REDUCED RATE OF TAX OF 6PERCENT SGST AND 6PERCENT CGST IS AVAILABLE TO THE LAST LEG IN THE SUPPLY CHAIN AND SHALL NOT BE LIMITED TO ONLY THE FIRST LEVEL OF SUB-CONTRACTORS, PROVIDED THE CONDITIONS IN THE IMPUGNED ENTRY ARE MET AND ETC. THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, the petitioner seeks following reliefs:

A. Issue order(s), direction(s), writ(s) in the nature of Certiorari to set aside the Show Cause Notice dated 06.04.2024 SCN Reference No. Case ID No./ACCT ENF- 08/MA-SUM-1113/2023-24issued by the Respondent No.2 for the FY 2019--20 to 2023-2024 (Annexure-A); HC-KAR NC: 2025:KHC:44030 B. Consequently, issue a writ of certiorari or order or direction in the nature of Certiorari to set aside the summary SCN dated 21.05.2024 issued by the Respondent no.2 in Form GST DRC-01 bearing Reference no. ZD290524060000V and Case ID AD290324043747Tfor FY 2019-2-20 to 2023-2024 (Annexure - B); C. Issue order(s), direction(s), writ(s) in the nature of Certiorari to set aside and quash the Impugned Order dated 30.08.2024 bearing Order No. 126/DGSTO-06/ACCT A-6.3/ADJ/S.73/2024-24 issued by the Respondent No.3 for the FY 2019-20 to 2023-2024 (Annexure - C);

D. Consequently, issue a writ of certiorari or order or direction in the nature of Certiorari to set aside the summary of the impugned Order dated 30.08.2024bearing Reference No. ZD2908241100620 issued by the Respondent No.3 for the FY 2019-20-2023-2024 (Annexure - D); and E. Pass any such other orders and directions as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

2.

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

3.

A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods April 2019 to HC-KAR NC: 2025:KHC:44030 March 2024. The Respondent initiated proceedings u/s. 73(9) of the Act CGST/KGST Act, 2017 and issued intimation notice to the petitioner to file reply. Subsequently, the second respondent issued show-cause notice in Form GST DRC-01 as per section 73(1) of KGST Act, calling for explanation with regard to non-compliance of Section 16(2) of IGST/CGST/SGST. The Petitioner filed its reply dated 13.04.2024 to the aforesaid show-cause notice. Pursuant to the same, 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 order at Annexure-C dated 30.08.2024, which is assailed in the present petition.

4.

Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 06.04.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure-C dated 30.08.2024 and the impugned orders deserve to be quashed and the matter be remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the HC-KAR NC: 2025:KHC:44030 petitioner to submit a reply to the show cause notice/produce necessary documents and thereafter to pass appropriate orders.

5.

Per contra, learned AGA for respondents would support the impugned orders 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.

6.

A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned order has been passed without granting an opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to provide a reasonable opportunity to the petitioner 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 order and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions. HC-KAR NC: 2025:KHC:44030

7.

In the result, I pass the following: ORDER i) The Writ Petition is allowed;

ii) The impugned order passed by third respondent at Annexure-C dated 30.08.2024 is hereby set aside; iii) The petitioner shall appear before the third respondent on 01.12.2025, 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 01.12.2025, the third respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. (vi) In the event, the Petitioner does not appear before the 1st respondent on 01.12.2025 as stated HC-KAR NC: 2025:KHC:44030 supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

CM List No.: 2 Sl No.: 0

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.