M/S. Bengaluru Motor Cycle Works vs. The Assistant Commissioner Of Commercial Taxes - Karnataka High Court, 15 October 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:41383 WP No. 30792 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 30792 OF 2025 (T-RES) BETWEEN: M/S. BENGALURU MOTOR CYCLE WORKS (A PARTNERSHIP FIRM, REPRESENTED BY ITS PARTNER MR. AKSHYA S.) NO. 2228, GROUDN FLOOR, P R SQUARE, SINGANSANDRA OPP. ELEVATED HIGHWAY PILLAR NO. 93, HOSUR MAIN ROAD, BANGALORE KARNATAKA - 560 068 EMAIL ID: akshysrinivas8@gmail.com …PETITIONER (BY SRI. VENKATANARAYANA G.M., ADVOCATE) AND: THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LOCAL GOODS AND SERVICES OFFICER 16 6TH FLOOR, TTMC BUILDING, 80 FEET ROAD, KORAMANGALA BANGALORE, KARNATAKA - 560 095 …RESPONDENT (BY SMT. JYOTI M. MARADI, HCGP) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI AND SET ASIDE THE IMPUGNED ORDER VIDE GST DRC-07 BEARING REFERENCE NO. ZD2902251159556, DATED 27.02.2025 (ANNEXURE-A), PASSED BY THE RESPONDENT AS BEING VOID, ARBITRARY, ILLEGAL, VIOLATIVE OF PRINCIPLES OF NATURAL JUSTICE AND ETC., Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:41383 WP No. 30792 of 2025 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs: "a) Issue a writ of Certiorari and set aside the Impugned Order vide GST DRC-07 bearing Reference No. ZD2902251159556, dated 27.02.2025 (Annexure-A), passed by the Respondent as being void, arbitrary, illegal, violative of principles of natural justice. b) Remand the matter to the adjudicating authority for fresh consideration. c) Pass any other or further orders as this Hon'ble Court may deem fit and proper in the interest 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 notice in Form GST ASMT – 10 dated 17.02.2024, the petitioner filed a detailed reply along with documents. Further, respondent issued an intimation notice under Form GST DRC-01A dated 14.05.2024 to the petitioner, who did not issue any reply/response to the same. Subsequently, the respondent issued a show-cause notice dated 02.07.2024. Since the petitioner did not HC-KAR NC: 2025:KHC:41383 submit his reply to the said show-cause notice also, the respondent proceeded to pass the impugned order dated 27.02.2025 confirming the total demand of Rs.47,83,514/- including the tax, interest and penalty.

Learned counsel for the petitioner submits that due to bonafide reasons, unavoidable circumstances and sufficient cause, petitioner couldn't submit replies/ documents to neither the pre- intimation notice nor 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 pre-intimation notice and 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. HC-KAR NC: 2025:KHC:41383

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 counsel for the petitioner submits that due to 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 27.02.2025 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 impugned show-cause notice dated 02.07.2024 by imposing HC-KAR NC: 2025:KHC:41383 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/- to the High Court Legal Services Authority, Bengaluru.

(ii) The impugned order dated 27.02.2025 passed by the respondent under Section 73 of the KGST 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 02.07.2024 issued under Section 73(1) of the CGST/KGST Act, 2017 at Annexure – F.

(iv) The petitioner is directed to appear before the respondent on 19.11.2025 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 first respondent who shall HC-KAR NC: 2025:KHC:41383 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 19.11.2025 as stated supra, present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 2 Sl No.: 36