M/S Kalpaka Timbers vs. The Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORDER PASSED IN APPEAL NO.GST/AP-182/2024-2025 BY RESPONDENT NO.2 VIDE ORDER DATED 29.07.2025 BEARING REFERENCE NO.ZD2907251195807 VIDE ANNEUXRE-‘G’ 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, petitioner seeks for the following reliefs:- “a) Issue a Writ of Certiorari or other appropriate writ or order, quashing the impugned order passed in Appeal No. GST/AP-182/2024-2025 by respondent no.2 vide order dated 29.07.2025 bearing Reference no.ZD2907251195807 vide ANNEXURE-“G”. b) Issue a Writ of Certiorari or other appropriate writ or order, quashing the impugned summary of the demand order passed in pursuant to Appeal No. GST/AP-182/2024-2025 by respondent no.2 in Form GST APL 04 dated 30.07.2025 vide ANNEXURE-G-1; c) Issue a Writ of Certiorari or other appropriate writ or order, quashing the impugned adjudication order bearing Ref No: ACCT (ENF)/SMG/ADJ-14-2023- 24/2024-25 dated 16.04.2024 passed by Respondent No. 3 vide ANNEXURE-E ; d) Issue a Writ of Certiorari or other appropriate writ or order, quashing the impugned summary order in Form HC-KAR NC: 2025:KHC:44507 GST DRC-07 dated 15.04.2024 bearing reference no. ZD290424033977X passed by Respondent No. 3 vide ANNEXURE-E1; e) Pass such other order or direction as this Hon'ble Court may deem fit and proper in the interest of justice and equity.”
Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.
A perusal of material on record will indicate that pursuant to notice in Form GST DRC-01 A dated 08.08.2023, issued by the 3rd respondent, the petitioner did not issue any reply/response to the same. Subsequently, the 3rd respondent issued a show-cause notice dated 21.11.2023 under Section 73 of the CGST/KGST Act, 2017 alleging that the petitioner had claimed excess input tax when compared to GSTR-3B and GSTR-2A. Since the petitioner did not submit his reply to the said show-cause notice also, the 3rd respondent proceeded to pass the impugned order dated 16.04.2024 under Section 73 of the KGST Act, 2017 confirming the total demand of Rs.5,95,260/- including the tax, interest and penalty. In pursuance of the same, the petitioner filed an appeal under Section 107 of the KGST/CGST Act before the 2nd HC-KAR NC: 2025:KHC:44507 respondent. Since during the proceedings, the petitioner, who was represented by his auditor had expired on 30.04.2025, the petitioner could not represent through out the proceedings. Therefore, respondent No.2 proceeded to pass the ex-parte appeal order dismissing the appeal and upheld the demand vide order dated 29.07.2025. 4. Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances, and sufficient cause the petitioner couldn't submit replies/ documents to neither the intimation notice nor the show-cause notice under Section 73 of the CGST/KGST Act, 2017 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 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 opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings. HC-KAR NC: 2025:KHC:44507
Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.
Though several contentions have been urged by both sides, the counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order.
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 29.07.2025 passed by respondent No.2 and 16.04.2025 passed by respondent No.3 and remitting the matter back to the 3rd respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner HC-KAR NC: 2025:KHC:44507 submitting reply to the impugned show-cause notice dated 21.11.2023. 9. In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned appeal order dated 29.07.2025 passed by respondent No.2 under Section 107 of the KGST/CGST Act at Annexure-G and the impugned adjudication order dated 16.04.2024 passed by the 3rd respondent under 73 of the KGST Act, 2017at Annexure – E are hereby set aside.
(iii) The matter is remitted back to the 3rd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 21.11.2023 issued under section 73 of the CGST/KGST Act, 2017 at Annexure – E.
(iv) The petitioner is directed to appear before the 3rd respondent on 03.12.2025 without awaiting further notice from the 3rd respondent. HC-KAR NC: 2025:KHC:44507 (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be 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 3rd respondent 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.: 38
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.