M/S Soma Enterprises Limited vs. Joint Commissioner Of Commercial Taxes (Appeals-1)
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Cause title — parties, addresses and appearances
ORAL ORDER
In this writ petition, the petitioner seeks the following reliefs: a) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside the Show Cause Notice dated 11.09.2023, and SCN Reference no. KGAIN No. 211/2023-24 issued by Respondent No.2; (ANNEXURE - C);
b) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside the Summary Show Cause Notice dated 11.09.2023, and bearing reference No. DCCT(A)-1.3/GST(73)/2023-24 T.No.485/2023-24 vide ZD290923012515C issued by Respondent No.2; (ANNEXURE-C1) HC-KAR NC: 2025:KHC:44030 c) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside and quash the Order passed by Respondent no. 2 under section 73(9) of the IGST, SGST and CGST Act, 2017, bearing No. DCCT(A)- 1.3/GST(Adj.73/2023-24 T.No.717/23-24 dated 25.10.2023; (ANNEXURE - D)
d) To issue a writ of Certiorari or order or direction in the nature of Certiorari set aside and quash the Summary Order passed by Respondent no. 2 und FORM GST DRC 07, dated 25.10.2023 bearing appeal Order No. 9AACCS8242F178; (ANNEXURE - D1)
e) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside and quash the Impugned order passed by respondent No. 1 under Section 107(11) of the SGST and CGST Act, 2017, order dated 31.05.2024 bearing appeal Order No. - ZD290524131562F; (ANNEXURE - F)
f) To issue a writ of Certiorari or order or direction in the nature of Certiorari to set aside and quash the Summary of the demand bearing order ZD290524131562F under FORM GST APL-04 passed by Respondent No.1 dated 31.05.2024; (ANNEXURE-F1) g) To direct Respondent no.3 to produce proof of tax paid by them being such amounts collected by the Petitioner to the Department; HC-KAR NC: 2025:KHC:44030 h) Alternatively, to direct the Respondent Nos. 1 & 2, to initiate the appropriate proceedings against the Respondent no.3 including the recovery of such sums now imposed against the petitioner, if this Hon'ble Court deems so fit and necessary; and i) Grant any other orders that this Hon'ble Court deems fit and proper in the interest of justice.”
Heard the learned counsel for the petitioner and the learned AGA for respondents and perused the material on record.
A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods July 2017 to March 2018. The Respondent initiated proceedings u/s. 73 of the 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 of KGST Act, calling for explanation with regard to ineligible ITC. The petitioner filed its reply to the aforesaid show-cause notice. Pursuant to the same, the respondent without HC-KAR NC: 2025:KHC:44030 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 orders at Annexure-D dated 25.10.2023 and Annexure-F dated 31.05.2024, which are assailed in the present petition.
Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned orders at Annexure-D dated 25.10.2023 and Annexure-F dated 31.05.2024, and the impugned orders deserve to be quashed and the matter be remitted back to the respondents 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. HC-KAR NC: 2025:KHC:44030
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.
A perusal of the material on record including the impugned orders will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned orders have 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 orders and remit the matter back to the respondent for HC-KAR NC: 2025:KHC:44030 reconsideration afresh in accordance with law by issuing certain directions.
In the result, I pass the following: ORDER i) The Writ Petition is allowed;
ii) The impugned order passed by second respondent at Annexure-D dated 25.10.2023 and the order dated 31.05.2024 passed by the first respondent are hereby set aside; iii) The petitioner shall appear before the second 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 second HC-KAR NC: 2025:KHC:44030 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 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.