M/S Habitus Hr Solutions Private Limited vs. Union Of INDIA
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs: "A) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 21/02/2025, bearing No: ACCT/Audit 5.4/GST/U-73/aDJ-72/2024- 25 at ANNEXURE-C, issued by Respondent-2 for the period 2020- 21 in so far as the petitioner is concerned. (B) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 21/02/2025, bearing reference no: ZD2902250863645 at ANNEXURE-D, issued by Respondent-2 for the period 2020-21 in so far as the petitioner is concerned. (C) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 24/02/2025, bearing No: DGSTO-05/AC(A)-5.6/ADJ/S.73/2024-25 at ANNEXURE-E, issued by Respondent-2 for the period 2020-21 in so far as the petitioner is concerned. (D) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 24/02/2025, bearing reference no: ZD290225095071F at ANNEXURE-F, Issued by Respondent-2 for the period 2020-21 in so far as the petitioner is concerned. HC-KAR NC: 2025:KHC:43457 E) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 26/02/2025, bearing No: ACCT/LGSTO-46/ADJ/T.2024-25 ANNEXURE-G, issued by Respondent-3 for the period 2020-21 in so far as the petitioner is concerned. F) Issue Writ in the nature of certiorari quashing the in DRC-07, dated: 24/02/2025, bearing reference no: ZD290225095071F at ANNEXURE-H for the period 2020-21 in so far as the petitioner is concerned. (G) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 29/08/2025, Assignment No: CR-1174/2023-24 at ANNEXURE-J, issued by Respondent-2 for the period 2019-20 in so far as the petitioner is concerned. (H) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 29/08/2024, bearing reference no: ZD290824105421J at ANNEXURE-K, Issued by Respondent-2 for the period 2019-20 in so far as the petitioner is concerned. (I) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 28/04/2025, bearing No: DGSTO-05/AC(A)-5.6/ADJ/S.73/2025-26 at ANNEXURE-L, issued by Respondent-2 for the period 2021-22 in so far as the petitioner is concerned. (J) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 28/04/2025, bearing reference no: ZD2904250937332 at ANNEXURE-M, Issued by Respondent-2 for the period 2021-22 in so far as the petitioner is concerned. HC-KAR NC: 2025:KHC:43457 (K) Issue Writ in the nature of certiorari quashing the adjudication order passed under section 73(9) of the KGST/CGST Act, dated: 28/04/2025, Reference No: DGSTO-05/AC(A)-5.6/ADJ/5.73/2025- 26 at ANNEXURE-N, issued by Respondent-2 for the period 2022- 23 in so far as the petitioner is concerned. (L) Issue Writ in the nature of certiorari quashing the demand in DRC-07, dated: 28/04/2025, bearing reference no: ZD290425093790Z at ANNEXURE-P, issued by Respondent-2 for the period 2022-23 in so far as the petitioner is concerned (M) Issue Writ of Mandamus, or Writ in the nature of Mandamus, directing the respondents 3,4, and 5 grant any opportunity to produce the books of accounts for the periods 2020-21,2019-20, 2021-22 and 2022-23, in so far as the petitioner is concern. (N) Issue any other writ or direction that may be deemed fit in the facts and circumstances of the instant case in the interests of justice. Including the cost of The Writ Petition."
Heard the learned counsel for the petitioner, learned Additional Government Advocate for respondent Nos.2 to 5 and learned Central Government Counsel for respondent No.1/Union of India and perused the material on record.
Though several contentions have been urged by both sides, the counsel for the petitioner submits that no sufficient opportunity was granted, resulting in violation of principles of HC-KAR NC: 2025:KHC:43457 natural justice and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte orders.
A perusal of the material on record will indicate that the respondents initiated proceedings against the petitioner under Section 73 of the Karnataka Goods and Service Tax Act, 2017, pursuant to which, the respondents passed multiple (three) adjudication orders dated 21.02.2025, 24.02.2025 and 26.02.2025 under Section 73 (9) of the KGST Act, all for the tax period 2020-21 which is clearly impermissible in law and the same deserve to be quashed and the matter remitted back to the respondents for reconsideration of the claim of the petitioner and to proceed further in accordance with law.
Insofar as the remaining impugned adjudication orders dated 29.08.2024 for the tax period 2019-20, dated 28.04.2025 for the tax period 2021-22, and dated 28.04.2025 for the tax period 2022-23, the petitioner having failed to submit a reply to the show cause notices, the respondents proceeded to pass the impugned ex-parte adjudication orders and in view of the submission made on behalf of the petitioner that if one more opportunity is provided, HC-KAR NC: 2025:KHC:43457 the petitioner would submit replies to the show cause notices in relation thereto of the tax periods and contest the said proceedings, I deem it just and appropriate to adopt a justice oriented approach and set aside these adjudication orders also and remit the matter back to the respondents for reconsideration afresh in accordance with law by imposing certain conditions.
In the result, I pass the following: ORDER (i) The petition is allowed; (ii) Impugned adjudication orders and demand dated 21.02.2025 at Annexure C and D, dated 24.02.2025 at Annexures E and F and dated 26.02.2025 at Annexures G and H, passed by respondent No.4 in relation to the tax period 2020-21 are hereby set aside and the matter is remitted back to the fourth respondent to the stage of the petitioner submitting reply to the show cause notice for reconsideration afresh in accordance with law. HC-KAR NC: 2025:KHC:43457 (iii) The impugned adjudication order dated 29.08.2024 at Annexure J and the demand dated 29.08.2024 at Annexure K for the tax period 2019-20 is hereby set aside and the matter remitted back to the respondent No.4 for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice, subject to the petitioner depositing 10% of the tax amount before the respondent No.4, which would be subject to the final outcome of the proceedings. (iv) The impugned adjudication order dated 28.04.2025 at Annexure L and the demand dated 28.04.2025 at Annexure M for the tax period 2021-22 is hereby set aside and the matter remitted back to the respondent No.4 for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice, subject to the petitioner depositing 10% of the tax amount before the respondent No.4, which would be subject to the final outcome of the proceedings. HC-KAR NC: 2025:KHC:43457 (v) The impugned adjudication order dated 28.04.2025 at Annexure N and the demand dated 28.04.2025 at Annexure P for the tax period 2022-23 is hereby set aside and the matter remitted back to the respondent No.4 for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice, subject to the petitioner depositing 10% of the tax amount before the respondent No.4, which would be subject to the final outcome of the proceedings. (vi) Petitioner shall appear before the respondent No. 4 on 26.11.2025. (vii) Liberty is reserved in favour of the petitioner to submit pleadings, responses, documents etc. which shall be considered by the respondent No.4, who shall provide sufficient and reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE BMV*/List No.: 1 Sl No.: 11/CT-SG
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.