M/S Arushi Green Energy (INDIA) PVT LTD. vs. The Deputy Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:-
“a) Issue Writ of Certiorari or in the like nature of Certiorari quashing the Impugned audit observation and issued under section 65(6) of the KGST Act-2017, bearing Ref No-DCCT9 (Audit-2.9)/GST/ADT/2023-24 dated 13.07.2023 ANNEXURE-B and quantification report bearing ref no-DCCT(Audit- 2.9)/GST/ADT/2023-24 dated 18.08.2023 vide ANNEXURE-C. b) Issue Writ of Certiorari or in the like nature of Certiorari quashing the tax intimation statement ascertained as being payable under section 73(5) of the CGST/KGST Act in GST-DRC-01A, dated 18.08.2023 bearing ref по-ZD2908230260299- ANNEXURE-D, and show cause notice bearing reference no-DCCT(AUDIT-2.9)/GST/ADT/2023-24 dated 30.08.2023 is herewith enclosed as ANNEXURE-E and the summary show cause notice dated 30.08.2023 bearing reference no ZD290823045442A vide ANNEXURE-E1. c) Issue Writ of Certiorari or in the like nature of Certiorari quashing the impugned adjudication order dated 18.10.2023 22.03.2022 bearing ref no- DCCT(Audit-2.9)/GST/ADJ/2023-24 issued under HC-KAR NC: 2025:KHC:42975 section 73(9) of the KGST/CGST Act-2017 vide ANNEXURE-F. d) Issue Writ of Prohibition, direct the respondent authority not to take any further steps pursuant to impugned adjudication order, bearing reference DCCT(Audit-2.9)/GST/ADJ/2023-24dated 18.10.2023 vide ANNEXURE-F, in the interest of Justice and Equity. e) Pass such other writ or direction which this Hon'ble Court deems fit under the facts and circumstances of the case, 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 respondent issued an intimation notice under Form GST DRC-01A dated 18.08.2023 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent issued a show-cause notice dated 30.08.2023 under Section 73(1) read with Section 73(5) and 73(7) of the CGST/KGST Act, 2017. Since the petitioner did not submit his reply to the said show-cause notice also, the respondent proceeded to pass the impugned order dated 18.10.2023 under Section 73(9) of the CGST/KGST Act, 2017 HC-KAR NC: 2025:KHC:42975 confirming the total demand of Rs.3,17,83,395/- including the tax, interest and penalty.
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 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. 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 opportunity is provided, by setting aside the impugned order, the petitioner would submit a reply to the show-cause notice and contest the proceedings.
Per contra, learned AGA for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. HC-KAR NC: 2025:KHC:42975
Though several contentions have been urged by both sides, the learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause petitioner did not file its reply/ documents, which 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 order dated 18.10.2023 remitting the matter back to the 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 30.08.2023. 9. In the result, I pass the following: ORDER
(i) The petition is hereby allowed. HC-KAR NC: 2025:KHC:42975 (ii) The impugned order dated 18.10.2023 passed by the respondent under 73(9) of the KGST Act, 2017 at Annexure – F is hereby set aside.
(iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 30.08.2023 issued under Section 73(1) of the CGST/KGST Act, 2017 at Annexure – E.
(iv) The petitioner is directed to appear before the respondent on 28.11.2025 without awaiting further notice from the respondent.
(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 respondent on 28.11.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE MDS; List No.: 2 Sl No.: 28
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.