BharatTaxGST

M/S Manidhari Trading Company vs. State Of Karnataka

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WP/11576/2024HC KarnatakaGSTCNR KAHC01022405202431 October 2025Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI. BHARATH KUMAR V., ADVOCATEFor Respondent: SRI. K. HEMA KUMAR, AGA

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:44766 WP No. 11576 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 11576 OF 2024 (T-RES) BETWEEN: M/S MANIDHARI TRADING COMPANY (HINDU UNDIVIDED FAMILY BUSINESS) (THE BUSINESS HAS BEEN WOUND UP AND THE GST REGISTRATION HAS BEEN CANCELLED WITH EFFECT FORM 30.06.2019) REPRESENTED THROUGH ITS KARTHA, MR RAJESH JAIN, S/O J. P. JAIN, AGED ABOUT 53 YEARS, R/O NO. 5, JINESHWAR APARTMENT, 1ST CROSS, NEAR SHESHADRIPURAM, POLICE STATION, NEHRUNAGAR, SHESHADRIPURAM, BENGALURU – 560 020. …PETITIONER (BY SRI. BHARATH KUMAR V., ADVOCATE) AND: 1. STATE OF KARNATAKA THROUGH ITS SECRETARY, DEPARTMENT OF COMMERCIAL TAXES GOODS AND SERVICES TAX (GST) VIKASA SOUDHA, AMBEDKAR VEEDHI, BENGALURU – 560 001. 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) -1.6 DGSTO -01, BENGALURU, HAVING OFFICE AT, BMTC BUILDING, 5TH FLOOR, YESHWANTHPUR, BENGALURU – 560 022. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:44766 WP No. 11576 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION QUASHING THE ORDER DTD 15.07.22 BEARING NO. DCCT (A)-1.6/DGSTO-1/01/22-23 ISSUED BY RESPONDENT NO.2 HEREIN ANNEXURE-A. 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, petitioner seeks for the following reliefs:- “a. Issue a writ, order or direction in the nature of certiorari or any other appropriate writ, order or direction quashing the order dated 15.07.2022 bearing No.DCCT(A)-1.6/DGSTO-1/01/2022-23 issued by the Respondent No.2 herein (Annexure-A); b. Grant such other order that this Hon’ble Court deems fit in the facts and circumstances of the present matter.”

2.

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

3.

A perusal of material on record will indicate that the respondent No.2 issued an intimation notice under Form GST DRC-01A dated 12.05.2022 under Section 73(5) of the CGST/KGST Act to the petitioner, who did not issue any HC-KAR NC: 2025:KHC:44766 reply/response to the same. Subsequently, the respondent No.2 issued a show-cause notice dated 24.05.2022 under Section 73(1) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice also, the respondent No.2 proceeded to pass the impugned order dated 15.02.2023 under Section 73(9) and 73(10) of the CGST/KGST Act, 2017 confirming the total demand of Rs.3,68,12,099/- including the tax, interest and penalty.

4.

Learned counsel for the petitioner submits that the intimation as well as show cause notice have not been served on the petitioner by uploading the same to the portal maintained by the Department of GST and hence, couldn't submit replies/ documents to neither the pre-intimation notice nor the show cause notice 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 show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more HC-KAR NC: 2025:KHC:44766 opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings.

6.

Per contra, learned HCGP for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

7.

Though several contentions have been urged by both sides, the counsel for the petitioner submits that intimation as well as show cause notice have not been served on the petitioner by uploading the same to the portal maintained by the Department of GST and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order.

8.

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 the impugned orders dated 15.07.2022 remitting the matter back to HC-KAR NC: 2025:KHC:44766 the respondent No.2 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 24.05.2022 by imposing cost of Rs.15,000/- on the petitioner payable to the High Court Legal Services Authority, Bengaluru.

9.

In the result, I pass the following: ORDER

(i) The petition is hereby allowed subject to payment of cost of Rs.15,000/- to the High Court Legal Services Authority, Bengaluru.

(ii) The impugned order dated 15.07.2022 passed by the respondent No.2 at Annexure – A is hereby set aside.

(iii) The matter is remitted back to the respondent No.2 for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the show cause notice dated 24.05.2022. (iv) The petitioner is directed to appear before the respondent No.2 on 03.12.2025 without awaiting further notice from the respondent No.2. (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be HC-KAR NC: 2025:KHC:44766 considered by the first 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 respondent No.2 on 03.12.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

MDS 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.