M/S Jmj Contractors vs. The Joint Commisioner Of Commercial Taxex (Appeals ) -5
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:- “i. Issue a Writ of Certiorari quashing the impugned Show Cause Notice dated 30.05.2024 bearing File No DCCT(A)-5.4/GST(ADT)/2024-25 along with Form GST DRC-01 dated 30.05.2024 bearing Reference No. ZD2905241156764 issued by 2nd Respondent (Annexure -A); and ii. Issue a Writ of Certiorari quashing the impugned Order-in-Original dated 06.08.2024 bearing File No. DCCT(A)-5.4/GST(ADJ)-4/2024-25 along with Form GST DRC-07 dated 06.08.2024 bearing Reference No. ZD2908240227627 passed by the 2nd Respondent (Annexure-B); and iii. Issue a Writ of Certiorari quashing the impugned Order in Appeal in APL-2 dated 14.05.2025 bearing Reference No. ZD290525044081J, passed by the 1st Respondent (Annexure - C); and HC-KAR NC: 2025:KHC:41779 iv. To issue a Writ of Mandamus or any other Writ, order(s), directions, holding that the impugned proceedings under Section 73 of the CGST Act/KGST Act, initiated in light of the Notification issued under Section 168A of the CGST Act/KGST Act, is without juri iction; and v. Direct the Respondents to refund the deposit of 10% remitted by the Petitioner; and vi. To issue Order(s), Directions, Writ(s) or any other relief as this Hon'ble Court deems it fit and proper in the facts and circumstance of the case in the interest of justice and equity. Alternatively vii. To Issue a Writ of Mandamus, directing Respondent No. 2 to reconsider the matter in fresh adjudication from the stage of Show Cause Notice in accordance with law, while providing Petitioner an opportunity of being heard and reserving liberty to the Petitioner to urge all contentions.”
Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.
A perusal of material on record will indicate that pursuant to a notice dated 15.07.2023 under Section 65 of the CGST/KGST Act, 2017, requesting the petitioner to furnish certain HC-KAR NC: 2025:KHC:41779 documents to initiate audit proceedings for the financial year 2019- 20, respondent No.2 issued an Audit Report dated 15.05.2024 under Section 65(6) of the CGST/KGST Act. Subsequently, the respondent No.2 issued a show-cause notice dated 30.05.2024 under Section 73(1) of the CGST/KGST Act, 2017 and issued two reminders dated 18.07.2024 and 29.07.2024 calling upon the petitioner to appear and furnish reply. Since the petitioner had not replied to the said Notices, the respondent No.2 passed an exparte Order-in-Original dated 06.08.2024. The petitioner thereafter submitted a letter seeking rectification of the impugned order along with supporting documents but the respondent did not consider the same. Consequently, the petitioner preferred an appeal on 08.04.2025 before respondent No.1 under Section 107 of the GST Act, which came to be rejected on 14.05.2025 on account of delay and limitation. Aggrieved by which, the petitioner is before this Court by way of the present petition.
In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner did not receive the aforesaid notices issued by the respondents and hence could not HC-KAR NC: 2025:KHC:41779 submit reply/ documents to the same which has culminated in the impugned ex-parte order and if an opportunity is given to the petitioner to file reply/ documents to the said notices by setting aside the impugned ex-parte order the petitioner would do so and the respondent No.2 may be directed to directed to pass fresh order after considering the replies/ documents filed by the petitioner. It is further submitted that the impugned proceedings initiated pursuant to the impugned show cause notice dated 30.05.2024 is barred by limitation under Section 73(10) of the KGST Act and as such, the availability of equivalent, efficacious and alternative remedy by way of filing of an appeal under Section 107 of the CGST / KGST Act would not come in the way of the petitioner prosecuting the present petition.
Per contra, learned HCGP for the respondents – revenue submits that the period of limitation has been extended by the respondents vide Notification No. 13/2022 dated 05.07.2022, Notification Nos. 9 and 56 of 2023 dated 31.03.2023 and 08.12.2023 respectively and as such, it cannot be said that the proceedings are barred by limitation. HC-KAR NC: 2025:KHC:41779
Learned counsel for the petitioner would invite my attention to the Petition in Special Leave Appeal (C) No. 4240/2025 pending before the Apex Court in order to contend that the validity of the said Notifications are seized by the Apex Court and pending adjudication before the Hon’ble Supreme Court.
In view of the aforesaid facts and circumstances and the submissions made by both sides which will indicate that the validity of the aforesaid Notifications are seized by the Apex Court and which will have an impact / bearing on the impugned proceedings, I am of the view that one more opportunity is required to be granted in favour of the petitioner by setting aside the impugned adjudication order and remitting the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions.
Under these circumstances, in order to avoid multiplicity of proceedings and to ensure that there are no conflicting orders, I deem it just and appropriate to direct the 2nd respondent to reconsider the matter afresh and pass a fresh adjudication order in accordance with law after disposal of Special Leave to Appeal (C) No.4240/2025 by the Apex Court. HC-KAR NC: 2025:KHC:41779
In the result, I pass the following:- ORDER
(i) 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-in-original at Annexure – B dated 06.08.2024 passed by respondent No.2 and the impugned order-in- appeal at Annexure-C dated 14.05.2025 passed by the respondent No.1 are hereby set aside.
(iii) The matter is remitted back to the respondent No.2 for reconsideration afresh and pass a fresh adjudication order in accordance with law after disposal of SLP No.4240/2025 pending before the Apex Court.
(iv) The period between the date of the impugned order i.e., 06.08.2024 and the date on which the Apex Court disposes of the aforesaid SLP No.4240/2025 shall stand excluded for the purpose of limitation. (v) The petitioner is directed to appear before the respondent No.2 on 28.11.2025 to file reply to the show cause notice. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 23
Retyped and replaced vide Court order dated 31.10.2025
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.