M/S Sri. Siddarameshwara Stone Crusher And M Sand vs. The Deputy Commissioner Of Commercial Taxes
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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 of certiorari thereby quashing the Adjudication Order dated 12.08.2024, under Section 73(9) of the KGST/CGST/Act, 2017 passed by the 1st Respondent for the period 2019-2020 along with Demand Summary in DRC- 07 bearing Ref No.ZD2908240464807 to the tune of Rs.35,38,516/- (Compromising for Tax: Rs.18,69,424/- Interest: Rs.14,51,978/- and Penalty: Rs.2,17,114/-) as per Annexure-C.
(b) Issue writ of certiorari thereby quashing the Adjudication Order dated 26.02.2025 under Section 73(9) of the KGST/CGST Act, 2017 passed by the 1st Respondent for the period 2020-2021 along with Demand Summary in DRC- 07 bearing Ref No: ZD290225106915B to the tune of Rs.27,29,686/- (Compromising of Tax: Rs.15,21,126/-, Interest: Rs.10,56,298/- and Penalty: Rs.1,52,126/-) as per Annexure-F. HC-KAR NC: 2025:KHC:41297 (c) Issue writ of certiorari thereby quashing the Adjudication order dated 28.04.2025 under Section 73(9) of KGST/CGST Act, 2017 along with summary in DRC-07 bearing Ref No.ZD290425092578Q for the period 2021-2022, to the tune of Rs.27,49,140/- (Compromising of Tax: Rs.16,72,282/-, Interest: Rs.9,09,630/- and Penalty: Rs.1,67,228/-) as per Annexure-G.
(d) To grant such other relief as the Hon’ble Court may deem fit in the interest of justice and equity.”
Heard the learned counsel for the petitioner and the 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 2019-20, 2020-21 and 2021-22. The respondent initiated proceedings under the Act CGST/KGST Act, 2017 and issued intimation notices to the petitioner to file reply. Subsequently, the 1st respondent issued show-cause notice dated 27.05.2024, 21.10.2024 and 21.10.2024 for the aforesaid tax periods, respectively, in Form GST DRC-01 as per Section 73 of the KGST Act, calling for explanation with regard to wrong availment and utilization of excess / ineligible input tax credit. The petitioner filed its reply dated 15.06.2024, HC-KAR NC: 2025:KHC:41297
2024 and 28.10.2024, respectively, to the aforesaid show- cause notices. Pursuant to the same, the respondent issued one more Show Cause Notice on 20.02.2025 fixing the date of personal hearing with respect of tax period 2020-21, to which the petitioner could not attend due to medical emergency. Pursuant thereto, without considering the replies filed by the petitioner and also not providing the petitioner another opportunity of personal hearing u/s. 75(4) of the Act, the respondent proceeded to pass the impugned orders at Annexures – C, F and G dated 12.08.2024, 26.02.2025 and 28.04.2025, respectively, which are assailed in the present petition.
Learned counsel for the petitioner submits that the petitioner had filed its replies to the show-cause notices dated 15.06.2024, 28.10.2024 and 28.10.2024, respectively and due to health reasons could not participate in the personal hearing as well as the proceedings, the respondent without considering the said replies filed by the petitioner and without granting another opportunity of personal hearing has passed the impugned orders at Annexures – C, F and G dated 12.08.2024, 26.02.2025 and 28.04.2025, respectively and the impugned orders deserve to be HC-KAR NC: 2025:KHC:41297 quashed and the matter may be remitted back to the concerned respondent for reconsideration of the matter afresh in accordance with law by directing the respondents to consider the replies filed by the petitioner and also provide an opportunity of personal hearing.
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 due to health reasons could not participate in the personal hearing and also the proceedings, the impugned orders have been passed without granting sufficient and reasonable opportunity to the petitioner to produce necessary documents. Under these circumstances, in view of the respondent failing to provide reasonable and sufficient opportunity to produce necessary documents by adopting a justice oriented approach and in order to provide one more opportunity to HC-KAR NC: 2025:KHC:41297 the petitioner, I deem it just and appropriate to set aside the impugned orders and remit the matter back to the 1st 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 at Annexures – C, F and G dated 12.08.2024, 26.02.2025 and 28.04.2025, respectively, are hereby set aside. iii) The matter is remitted back to the 1st respondent for reconsideration afresh in accordance with. iv) The petitioner shall appear before the 1st respondent on 20.11.2025, without awaiting further notice from the 1st respondent, on which date, the petitioner shall submit its reply to the show cause notices along with relevant documents. v) The liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 1st respondent, who shall provide sufficient and reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. HC-KAR NC: 2025:KHC:41297 vi) Upon the petitioner submitting reply along with relevant documents to the show cause notices, on 20.11.2025, the 1st respondent shall afford a reasonable opportunity to the petitioner and hear it and proceed further in accordance with law. vii) In the event, the petitioner does not appear before the 1st respondent on 20.11.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 10
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.