M/S Regalos vs. Commercial Tax Officer - Karnataka High Court, 17 October 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:41598 WP No. 31442 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.31442 OF 2025 (T-RES) BETWEEN: M/S REGALOS #7, B2 PRESTIGE CENTER POINT, EDWARD ROAD BENGLAURU – 560 052. REPRESENTED BY MR. RAMAIAH NANDAKUMAR ITS SOLO PROPRIETOR AGED ABOUT 44 YEARS RESIDING AT REHEBOTH, 69/1 5TH CROSS, HENNUR GARDENS, HENNUR BENGLAURU – 560 043. …PETITIONER (BY SMT. SUVARNA LAKSHMI M.L., ADVOCATE) AND: COMMERCIAL TAX OFFICER OFFICE OF THE ASISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-40 KORAMANGLA VTK-2, 1ST FLOOR BENGALURU – 560 047. …RESPONDENT (BY SMT. JYOTI M. MARADI, HCGP) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTIN OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER IN ORIGINAL BEARING NO. CTO/LGSTO-40/2AVS3B/2024-25 DATED 08.04.2024 ISSUED IN FROM GST DRC-07 AT ANNEXURE-A AS ARBITRARY, ISSUED IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE AND IN CONTRADICTION TO THE PROVISIONS OF THE CGST ACT AND REMAND THE MATTER BACK TO THE STAGE OF SHOW CAUSE NOTICE. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:41598 WP No. 31442 of 2025 CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

“a. To issue order(s) or directions in the nature of certiorari quashing the impugned Order-in-Original bearing No.CTO/LGSTO-40/2Avs3B/2024-25 dated 08.04.2024 issued in FORM GST DRC-07 at Annexure A as arbitrary, issued in violation of principles of natural justice and in contradiction to the provisions of the CGST Act and remand the matter back to the stage of Show Cause Notice;

b. To issue order(s), directions or any other relief as this Hon'ble Court deems fit and proper in the facts and circumstances of the case in the interest of justice.”

Heard learned counsel for the petitioner and learned HCGP for the respondent and perused the material on record.

A perusal of material on record will indicate that pursuant to the Notice in Form GST ASMT-10 dated 27.10.2023 issued to the petitioner was uploaded under the tab “Others” in the common GST Portal. Subsequently, respondent issued a show- cause notice dated 19.12.2023 under Section 73 of the CGST / KGST Act, 2017 alleging that the petitioners had wrongfully availed ITC when compared with GSTR-3B and GSTR-2A, which was also HC-KAR NC: 2025:KHC:41598 uploaded under the tab “Others” in the common GST Portal. Since the petitioner did not file its reply to the aforesaid notices, the respondent passed the impugned order dated 08.04.2024 under Section 73 of the KGST / CGST Act, 2017. 4. The learned counsel for the petitioner submits that the aforesaid notice in ASMT-10 and show cause notice issued by the respondent was uploaded under the tab “Others” in the common GST Portal and hence, the said notices went un-noticed by the petitioner and consequently, could not file reply / documents for the same, which resulted in the impugned ex-parte order. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition interalia contending that an opportunity of hearing was not granted to the petitioner before passing the impugned order, which is in violation of principles of natural justice.

Per contra, learned counsel 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:41598

Though several contentions have been urged by both sides, the counsel for the petitioner submits that the said notice and the show-cause notice were uploaded under the tab “Others” in the common GST Portal and hence, the said notices went un-noticed by the petitioner and consequently, could not file reply / documents for the same, which resulted in the impugned ex-parte order.

Under these circumstances, having regard to the specific assertion on the part of the petitioner that it was not provided with sufficient opportunity to put-forth its claims and contest the proceedings, which culminated in the impugned order, 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 08.04.2024 and 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 show-cause notice dated 19.12.2023. 8. In the result, I pass the following: ORDER

(i) The petition is hereby allowed. HC-KAR NC: 2025:KHC:41598 (ii) The impugned order dated 08.04.2024 passed

by the respondent Section 73 of the KGST / CGST Act,

2017 at Annexure – A 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 19.12.2023 issued under Section 73 of the CGST/KGST Act, 2017. (iv) The petitioner is directed to appear before the respondent on 21.11.2025 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 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 21.11.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

SV; List No.: 2 Sl No.: 11