M/S Amanthrana vs. State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for 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: 18.02.2025, bearing No: ACCT/LGSTO-57/2020-21/DRC-7/2024-25 at ANNEXURE-D 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: 18.02.2025, bearing reference no: period 2020-21 in so far as the petitioner is concerned. (C) 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 learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. HC-KAR NC: 2025:KHC:42185
A perusal of material on record will indicate that pursuant to notice in Form GST ASMT-10 dated 13.10.2023, the respondent No.2 issued an intimation notice under Form GST DRC-01A dated 15.10.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent No.2 issued a show-cause notice dated 11.11.2024 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 18.02.2025 under Section 73(9) of the CGST/SGST Act, 2017 confirming the total demand of Rs.17,19,747/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner could not 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 could not 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 HC-KAR NC: 2025:KHC:42185 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 HCGP 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 learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, the 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 HC-KAR NC: 2025:KHC:42185 dated 18.02.2025 remitting the matter back to the respondent No.2 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the show-cause notice dated 11.11.2024 by imposing cost of Rs.15,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed subject to payment of cost of Rs.10,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.
(ii) The impugned order dated 18.02.2025 passed by the respondent No.2 under Section 73(9) of the KGST Act, 2017 at Annexure – D 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 11.11.2024 issued under section 73(1) of the CGST/KGST Act, 2017. HC-KAR NC: 2025:KHC:42185 (iv) The petitioner is directed to appear before the respondent No.2 on 24.11.2025 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 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 24.11.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 3 Sl No.: 15
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.