Mr. Y K Devanatha vs. The Joint Commissioner Of Commercial Tax
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:
“i. To quash the ex-parte Re- Assessment Order bearing No ACCT. (LGSTO) -60/CR/2023-24, T No 4177/2023-24, issued by R-2 under Section 38 (7) read with Sections 36 (2), 40 (2) & Sec 72 (5) under Karnataka Value Added Tax Act, 2003 read with Section 174 of Karnataka Goods and Service Tax Act, and enclosed as Annexure-B. ii. To Quash the Demand Notices all dated 27-03-2024 issued from the Asst. Commissioner of the Commercial Taxes, Local Goods and Service Tax, DGSTO-2, Bengaluru 98 for the tax period 2017-18 and enclosed as Annexure - C, C1, C2. iii. To Issue a writ of certiorari or any other appropriate writ prohibiting the respondents No.3 from pursuing the remedy in the court of Special Judicial Magistrate HC-KAR NC: 2025:KHC:41781 First Class (Sales Tax) Gandhinagar, Bengaluru, in Criminal Miscellaneous No.97/2024, 98/2024, 99/2024 and Annexed as Annexures-D, D1, D2, and from initiating any fresh recovery proceedings in respect of the Ex-prate order under SECTION 38 (7) read with S 36 (2), 40 (2) & Sec 72 (5) under Karnataka Value Added Tax Act, 2003 Read with S 174 of Karnataka Goods and Service Tax Act. iv. Grant such other orders of directions deemed fit in the circumstances of the case and in the interests of justice.”
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 issuance of show cause notice, respondent No.3 afforded an opportunity of personal hearing on 23.02.2024 and extended to 15.03.2024, to which petitioner appeared along with his auditor but did not furnish any reply. Since the petitioner did not submit his reply to the said show-cause notice, the respondent No.3 proceeded to pass the impugned order dated 27.03.2024 under Section 38(7) read with Sections 40(2), 36(2) and 72(5) of the Karnataka Value Added Tax Act, 2003 read with Section 174 of HC-KAR NC: 2025:KHC:41781 the Karnataka Goods and Services Tax Act, confirming the total demand of Rs.51,81,474/- 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 the show-cause notice 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 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 HC-KAR NC: 2025:KHC:41781 bonafide reasons, unavoidable circumstances and sufficient cause, and the fact that the petitioner did not file its reply/ documents 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 27.03.2024 remitting the matter back to the respondent No.3 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the show-cause notice by imposing cost of Rs.10,000/- on the petitioner payable to the High Court Legal Services Authority, Bengaluru.
In the result, I pass the following: ORDER
(i) The petition is hereby allowed subject to payment of cost of Rs.10,000/- by the petitioner HC-KAR NC: 2025:KHC:41781 payable to the High Court Legal Services Authority, Bengaluru.
(ii) The impugned order dated 27.03.2024 passed by the respondent No.3 under Section 38(7) read with Sections 40(2), 36(2) and 72(5) of the Karnataka Value Added Tax Act, 2003 read with Section 174 of the Karnataka Goods and Services Tax Act at Annexure – B is hereby set aside.
(iii) The matter is remitted back to the respondent No.3 for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the Show-cause Notice.
(iv) The petitioner is directed to appear before the respondent No.3 on 20.11.2025 without awaiting further notice from the respondent No.3. (v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be HC-KAR NC: 2025:KHC:41781 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.3 on 20.11.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 35
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.