M/S Kmc Constructions LTD vs. The Union Of INDIA
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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 or a writ in the nature of certiorari to quash the impugned order in original bearing No.148/2024-25/ED3 dated 24.01.2025 passed by the second Respondent commonly for the years 201718, 2018-19 and 2019-20 vide ANNEXURE-E. (ii) Issue a Writ of Mandamus or a writ in the nature of mandamus directing the second respondent to consider the replies dated 13.04.2022 and 16.12.2022 filed by petitioner vide ANNEXURE-C and ANNEXURE-D and any further reply to be submitted by petitioner and pass orders de novo in accordance with law. (iii) To delete the levy of penalty and interest by following the judgment of the Hon’ble Supreme Court dated 14.08.2024 in civil appeal Nos.4056-4064/1999 in HC-KAR NC: 2025:KHC:44514 Authority of India (second judgment) reported in (2024) 21 CENTAX 313 (SC) and\ (iv) to issue any other writ or order as deemed fit by this Hon’ble Court in the facts and circumstances of the case, to meet the interest of justice and equity.”
Heard the learned counsel for the petitioner and the learned counsel for respondent and perused the material on record.
A perusal of the material on record will indicate that The Respondent No.2 initiated proceedings under Section 74 of the Act CGST/KGST Act, 2017 and issued show-cause notice dated 11.11.2022 in Form GST DRC-01 as per section 74 of KGST Act, calling for explanation with regard to several discrepancies. The Petitioner filed its reply dated 16.12.2022 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 under Section 75(4) of the Act proceeded to pass the impugned order at Annexure - E dated 24.01.2025, which is assailed in the present petition. HC-KAR NC: 2025:KHC:44514
Learned counsel for the petitioner submits that the impugned orders deserve to be quashed and the matter may be remitted back to the respondent for reconsideration of the matter afresh in 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 counsel for 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 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 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 HC-KAR NC: 2025:KHC:44514 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.
In the result, I pass the following: ORDER i) The petition is hereby allowed;
ii) The impugned order passed by the respondent No.2 at Annexure - E dated 24.01.2025 is hereby set aside; iii) The petitioner shall appear before the respondent on 03.12.2025 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 03.12.2025 the respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. v) In the event, the Petitioner does not appear before the respondent on 03.12.2025 as stated HC-KAR NC: 2025:KHC:44514 supra, the present order shall stand automatically recalled without further orders. vi) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. (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.