M/S. Narayanaswamy. L. N. vs. State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this writ petition, the 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 05/02/2025 bearing No.ACCT/LGSTO-038/DRC-7/2024-25 at Annexure-F issued by Respondent-2 for the period 2017-18 insofar as the petitioner is concerned.
(B) Issue writ in the nature of certiorari quashing the demand in DRC-07 dated 05/02/2025 bearing reference No:ACCT/LGSTO-038/DRC.07/24-25 at Annexure-G issued by Respondent-2 for the period 2017-18 insofar as the petitioner is concerned.
(C) Issue writ of mandamus or writ in the nature of mandamus directing the respondent No.2 not to levy the GST on sale of site and other immovable property.
(D) 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.” HC-KAR NC: 2025:KHC:41597
Heard the learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.
A perusal of the material on record will indicate that the petitioner filed its Return of Turnovers for tax periods of July 2017 to July 2022. The respondent initiated proceedings u/s. 74(5) of the Act CGST/KGST Act, 2017 dated 23.07.2024 and issued intimation notice to the petitioner to file reply. Subsequently, the respondent issued show-cause notice in Form GST DRC-01 as per section 74 of KGST Act dated 02.08.2024, calling for explanation with regard to disclosure of certain projects undertaken by the petitioner under the RERA Act. The petitioner filed its reply dated 16.08.2024 to the aforesaid show-cause notice. Pursuant to the same, the respondent without considering the reply filed by the petitioner and not providing the petitioner sufficient opportunity of personal hearing u/s. 75(4) of the Act proceeded to pass the impugned orders at Annexure – F dated 05.02.2025 and at Annexure – G dated 05.02.2025, which are assailed in the present petition. HC-KAR NC: 2025:KHC:41597
Learned counsel for the petitioner submits that the petitioner had filed its reply to the show-cause notice dated 02.08.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned orders at Annexure – F dated 05.02.2025 and at Annexure – G dated 05.02.2025 and the impugned orders deserve to be quashed and the matter remitted back to the respondent for reconsideration of the matter afresh in accordance with law by providing an opportunity to the petitioner to submit a reply to the show cause notice / produce necessary documents and thereafter to pass appropriate orders.
Per contra, learned AGA for the respondents would support the impugned orders and submit that there is no merit in the petition and the same is liable to be dismissed especially when the petitioner did not exercise his due diligence in participating in the impugned proceedings.
A perusal of the material on record including the impugned orders will indicate that it is an undisputed fact that the petitioner filed its reply to the show-cause notice and the impugned orders have been passed without granting an opportunity to the HC-KAR NC: 2025:KHC:41597 petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to provide an opportunity for the petitioner to provide reasonable opportunity to produce necessary documents by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the respondent for reconsideration afresh in accordance with law by issuing certain directions.
In the result, I pass the following: ORDER i) The petition is hereby allowed;
ii) The impugned orders passed by 2nd respondent at Annexure – F dated 05.02.2025 and at Annexure – G dated 05.02.2025 are hereby set aside; iii) The petitioner shall appear before the respondent on 27.11.2025, on which date, he shall submit his reply to the show cause notice along with relevant documents. HC-KAR NC: 2025:KHC:41597 iv) Upon the petitioner submitting a reply along with relevant documents to the show cause notice, on 27.11.2025, the respondent shall afford a reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. v) In the event, the petitioner does not appear before the respondent on 27.11.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 6
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.