BharatTaxGST

M/S Kodagu Nirmithi Kendra vs. State Of Karnataka

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WP/16531/2023HC KarnatakaGSTCNR KAHC01038794202329 October 2025Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI ANIL KUMAR B AND SRI CHERIAN PUNNOOSE, ADVOCATESFor Respondent: SRI K HEMA KUMAR, AGA FOR R-1 TO R-3

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:43175 WP No. 16531 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16531 OF 2023 (T-RES) BETWEEN: M/S. KODAGU NIRMITHI KENDRA, ROOM NO.24, 3RD FLOOR, NEW DEPUTY COMMISSIONER BUILDING, MADIKERI, KODAGU-541 201, REP. BY SHRI SACHIN R.G PROJECT MANAGER, AGED ABOUT 38 YEARS, THE COMPANY REGISTERED KSR ACT, 1960. …PETITIONER (BY SRI ANIL KUMAR B AND SRI CHERIAN PUNNOOSE, ADVOCATES) AND: 1. STATE OF KARNATAKA, THROUGH ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BENGALURU-560 001. 2. THE COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA, 'VANIJYA THERIGE', KARYALAYA, GANDHINAGAR, BENGALURU-560 009. 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT), KSFC, BUILIDNG, INDUSTRIAL AREA, MADIKERI-571 201. …RESPONDENTS (BY SRI K HEMA KUMAR, AGA FOR R-1 TO R-3) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER AND SUMMARY OF THE ORDER IN FORM GST DRC-07 NO.ACCT/AUDIT/MADIKERI/ADJ- 78/22.23 AND REF NO.2D2904230352610, BOTH DATED 26.04.2023, Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:43175 WP No. 16531 of 2023 PASSED BY THE R-3, DEMANDING RS.5,74,19,379/- VIDE ANNEXURE- A AND B TO THE WRIT PETITION. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

1.

In this petition, the petitioner seeks following reliefs:

"WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to: (a) Issue a writ of certiorari quashing the impugned order and summary of the order in FORM GST DRC-07 No. ACCT/Audit/Madikeri/ADJ-78/22-23 and Ref No. 2D2904230352610 both dated 26.04.2023, passed by the Respondent No.3, demanding Rs.5,74,19,379/- vide Annexure-A & Annexure-B, to the Writ Petition and (b) grant such other order or direction as deemed fit by this Hon'ble Court in the facts and circumstances of the case.".

2.

Heard learned counsel for the petitioner and learned Additional Government Advocate for respondent Nos. 1 to 3 and perused the material on record.

3.

A perusal of material on record will indicate that pursuant to notice in Form GST DRC -01A dated 21.12.2022, the petitioner sought for a copy of the intelligence report on 12.01.2023. HC-KAR NC: 2025:KHC:43175 Subsequently, the 3rd respondent issued a show-cause notice dated 14.02.2023 under Section 73(1) of the CGST/KGST Act, 2017,

Form GST DRC-01 demanding total GST of Rs.2,84,82,143/- and to submit reply within 30 days and it was received on 22.2.2023. Petitioner sought additional one week time to submit the reply on 23.3.2023. Since the petitioner did not submit his reply to the said show-cause notice, the 3rd respondent proceeded to pass the impugned order dated 26.04.2023 under Section 73 of the KGST Act, 2017, under Section 6 of CGST Act, under Section 4 of IGST Act, 2017 and GST Compensation to (Stats) Act, 2017 vide Annexure-A confirming the total demand.

4.

Learned counsel for the petitioner submits that since the petitioner's officers were engaged with the election duties assigned to them, petitioner could not consult and finalise the reply within the time, requested for some time to file reply and an opportunity of hearing over phone and hence couldn't submit replies/ documents to neither the pre-intimation notice nor the show-cause notice under section 73(1) of the CGST/KGST Act, 2017 and resultantly, couldn’t contest the proceedings. Despite of which, 3rd respondent proceeded to pass the impugned order without granting an HC-KAR NC: 2025:KHC:43175 opportunity of hearing and confirmed the entire demand and also issued summary of the order in FORM GST DRC 07 dated 26.4.2023. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition inter alia, 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 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 Additional Government Advocate 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 as the petitioner's officers were engaged in election duty, they could not file reply and sought some time and the fact that the petitioner did not file its reply/ documents culminated in the impugned ex-parte order. HC-KAR NC: 2025:KHC:43175

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 order and summary of the order in FORM GST DRC 07 both dated 26.4.2023 passed by the 3rd respondent and remitting the matter back to the 3rd respondent for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 14.02.2023. 9. In the result, I pass the following: ORDER

(i) The petition is hereby allowed.

(ii) The impugned order and summary of the order both dated 26.04.2024 passed by the 3rd respondent Annexures-A and B 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 HC-KAR NC: 2025:KHC:43175 dated 14.02.2023 issued in FORM GST DRC-01 at Annexure –C.

(iv) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 3rd respondent who shall provide sufficient and reasonable opportunity to the petitioner and hear them and proceed further in accordance with law. (S.R.KRISHNA KUMAR) JUDGE

tsn* List No.: 1 Sl No.: 54

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.