Sharavathi Pattina Sahakara Sangha LTD vs. Commissioner Of Central Tax (Appeals)

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WP/10777/2025HC KarnatakaGSTCNR KAHC01024183202503 November 2025Bench: S.R.KRISHNA KUMAR5 pages
For Petitioner: SRI MAHESH R UPPIN., ADVOCATEFor Respondent: SRI SHISHIRA AMARNATH, ADVOCATE FOR R1 & R2

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:44033 WP No. 10777 of 2025 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. 10777 OF 2025 (T-RES) BETWEEN: SHARAVATHI PATTINA SAHAKARA SANGHA LTD., 1ST FLOOR, PCARD BUILDING, THIRTHAHALLI TALUK, SHIVAMOGGA DISTRICT - 577432, (REG. UNDER KCS ACT, 1959), BY ITS CHIEF EXECUTIVE OFFICER SUNITHA B M. …PETITIONER (BY SRI MAHESH R UPPIN.,ADVOCATE) AND: 1. COMMISSIONER OF CENTRAL TAX (APPEALS), OFFICE OF THE COMMISSIONER OF CENTRAL TAX (APPEALS), GST BHAVAN, 2ND FLOOR, S1 AND S2, VINAYA MARGA, SIDDARTHA NAGAR, MYSURU-570 011. 2. ASST. COMMISSIONER OF CENTRAL EXCISE AND CENTRAL TAX, SHIVAMOGGA DIVISION, 6TH CROSS, ASHWATH NAGAR, OFF SAVALANGA ROAD, SHIVAMOGGA - 577204. …RESPONDENTS (BY SRI SHISHIRA AMARNATH, ADVOCATE FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER -IN-ORIGINAL BEARING NO. MYS-EXCUS-000-DIVS-ACK-KJ- 08/2023-24 ST DATED 04/05/2023 PASSED BY R2 MARKED AS ANNX-A AND THE ORDER-IN-APPEAL BEARING NO.MYS-EXCUS- 000-APP-IA-29/2024-25 DATED 27/06/2024 ISSUED BY THE R1 Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44033 WP No. 10777 of 2025 MARKED AS ANNX-B BY ISSUING A WRIT IN THE NATURE OF CERTIORARI. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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:

“(i) Quash the order-in-Original bearing No.MYS- EXCUS-000-DIVS-AC-KJ-08-2023-24 ST dated 04.05.2023 passed by 2nd respondent marked as Annexure “A” and the Order-in-Appeal bearing No.MYS-EXCUS-000- APP-IA-29/2024-25 dated 27.06.2024 issued by the 1st respondent marked as Annexure ”B” by issuing a writ in the nature of certiorari; and (ii) Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.”

2.

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

3.

A perusal of the material on record will indicate that pursuant to the notice dated 12.10.2021 issued by the respondents, the petitioner submitted a reply, pursuant to which, the respondents called upon the petitioner to appear for personal HC-KAR NC: 2025:KHC:44033 hearing. Since the petitioner did not appear for personal hearing, the respondents proceeded to pass the impugned order dated 04.05.2023, calling upon the petitioner demanding service tax of 27,87,737/- together with interest and penalty. Aggrieved by the said order, the petitioner preferred an appeal before the appellate authority, which was dismissed as barred by limitation. Aggrieved by the impugned orders, petitioner is before this Court by way of the present petition.

4.

A perusal of the material on record would indicate that the inability and omission on the part of the petitioner to appear before the respondent No. 2 and participate in the personal hearing was due to bona fide reasons, unavoidable circumstances and sufficient cause. Under these circumstances in the light of the specific contention of the petitioner that if the impugned orders are set aside and the matter is remitted back to the respondent No. 2 for reconsideration afresh, the petitioner would appear before the respondent No. 2 on a date to be fixed by this Court and participate in personal hearing, I deem it just and appropriate to adopt a justice-oriented approach and set aside the impugned orders and remit the matter back to the respondent No. 2. HC-KAR NC: 2025:KHC:44033

5.

Insofar as the dismissal of the appeal filed by the petitioner by the first appellate authority is concerned, since the same was dismissed as barred by limitation, the dismissal would not constitute merger of the order of the second respondent with the order of the appellate authority and consequently the said dismissal will not come in the way of this Court exercising its juri iction under Article 226 of the Constitution of India.

9.

In the result, I pass the following: ORDER

(i) The petition is hereby allowed.

(ii) The impugned order dated 04.05.2023 passed by the second respondent under Section 74/75 of the KGST Act, 2017 at Annexure – A as well as impugned order dated 27.06.2024 passed by the first respondent under Section 107(11) of the SGST/CGST Act, 2017 are hereby set aside.

(iii) The matter is remitted back to the second respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 28.03.2025 issued under Section 87 of the Finance Act, 1944 at Annexure-C. HC-KAR NC: 2025:KHC:44033 (iv) The petitioner is directed to appear before the second respondent on 01.12.2025 without awaiting further notice from the second respondent.

(v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the second respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (vi) In the event, the petitioner does not appear before the second respondent on 01.12.2025, as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

CM List No.: 2 Sl No.: 6

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.