BharatTaxGST

M/S G Dayananda vs. Union Of INDIA

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WP/28204/2025HC KarnatakaGSTCNR KAHC01060737202515 October 2025Bench: S.R.KRISHNA KUMAR7 pages
For Petitioner: SMT. NEHA ALUR FOR SRI. ATUL K. ALUR, ADVOCATESFor Respondent: SMT. JYOTI M. MARADI, HCGP FOR R2 TO R4 SRI. MADANNAN PILLAI, C.G.C. FOR R1

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:41380 WP No. 28204 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. 28204 OF 2025 (T-RES) BETWEEN: M/S G. DAYANANDA, NO 4, 2ND STAGE, MODI HOSPITAL ROAD, WEST OF CHORD ROAD, MAHALAKSHMIPURAM, BENGALURU - 560 086., (REPRESENTED BY PROPRIETOR SRI. G. DAYANANDA) …PETITIONER (BY SMT. NEHA ALUR FOR SRI. ATUL K. ALUR, ADVOCATES) AND: 1. UNION OF INDIA THROUGH ITS SECRETARY, (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110 001. 2. STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE, GOVERNMENT OF KARNATAKA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 3. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEAL)-3 TTMC, BMTC DOUBLE ROAD SHANTHI NAGAR, BENGALURU - 27. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:41380 WP No. 28204 of 2025 4. THE ASSISTANCE COMMISSIONER OF COMMERCIAL TAXES (ENFORCEMENT)-12, SOUTH ZONE, ROOM NO.101, 1ST FLOOR, V.T.K.-2 BUILDING, RAJENDRANAGARA, KORAMANGALA, BANGALORE - 560 047 …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP FOR R2 TO R4 SRI. MADANNAN PILLAI, C.G.C. FOR R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED APPEAL

ORDER PASSED UNDER SECTION 107 OF THE CGST/KGST ACT, BY RESPONDENT-3 DATED 30.03.2025, BEARING GST AP NO. 337/2023-24 AT ANNEXURE FOR THE ASSESSMENT YEAR 2017-18, IN ANNEXURE-F, IN SO FOR THE PETITIONER IS CONCERNED AND ETC.,

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 in the nature of certiorari quashing the impugned appeal order passed under section 107 of the CGST/KGST Act, by Respondent-3 dated 30/3/2025, bearing GST AP no 337/2023-24 at ANNEXURE for the assessment year 2017-18, in ANNEXURE-F, in so for the petitioner is concerned. b) Issue a Writ in the nature of certiorari quashing the impugned appeal order passed under section 107 of the CGST/KGST Act, by Respondent-3 dated 30/3/2025, bearing GST AP no 336/2023-24 at HC-KAR NC: 2025:KHC:41380 ANNEXURE for the assessment year 2018-19, in ANNEXURE-G, in so far as the petitioner is concerned. c) Issue a Writ of Certiorari or Writ in the nature of certiorari Quashing the demand in GST- DRC-07, for the assessment year 2017-18, bearing No ADCOM/ENF/SZ/AC-12/DRC-07/2023-24, dated 31/10/2023 issued by the Respondent-4, at ANNEXURE-C, in so for the petitioner is concerned. d) Issue a Writ of Certiorari or Writ in the nature of certiorari Quashing the demand in GST- DRC-07, for the assessment year 2018-19, bearing No ADCOM/ENF/SZ/AC-12/DRC-07/2023-24, dated 31/10/2023 issued by the Respondent-4, at ANNEXURE-E, in so for the petitioner is concerned. e) Issue any other writ or direction that may be deemed fit in the facts and circumstances of the instant case in the interests of justice. Including the cost of The Writ Petition."

2.

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

3.

A perusal of material on record will indicate that pursuant to Show-cause notices both dated 11.07.2023 issued for the tax period from July 2017 to March 2018 and April 2018 to March 2019 respectively, the petitioner filed reply along with HC-KAR NC: 2025:KHC:41380 supporting evidence/ documents. Subsequently, the respondent No.4 rejecting the reply filed by the petitioner proceeded to pass the impugned orders dated 31.10.2023 under Section 73(9) of the CGST/KGST Act, 2017 confirming the total demand of Rs.16,24,072/- and Rs.20,04,775/- for the tax period from July 2017 to March 2018 and April 2018 to March 2019 respectively including the tax, interest and penalty. In pursuance of the same, the petitioner filed an appeals under section 107 of the KGST/CGST Act before the respondent No.

3.

Pursuant to the said applications, the respondent No.3 issued hearing notices to which neither the petitioner nor his authorized representative appeared nor filed any replies/ documents and hence the respondent No.3 passed an orders u/s. 107(11) both dated 30.03.2025 confirming the demand of Rs.16,24,072/- and Rs.20,04,775/- for the tax period from July 2017 to March 2018 and April 2018 to March 2019 respectively by placing the petitioner ex-parte.

4.

Learned counsel for the petitioner submits that the petitioner due to bonafide reasons, unavoidable circumstances and sufficient cause, could not submit his reply. It is submitted that since the GST Appellate Tribunal has not been constituted as on HC-KAR NC: 2025:KHC:41380 today, the petitioner has no option but to approach 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 notices 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 orders, the petitioner would submit a reply to the notices and contest the proceedings.

6.

Per contra, learned HCGP for the respondent Nos.2 to 4 and learned CGC for respondent No.1 submits that there is no merit in the petition and the same is liable to be dismissed.

7.

Though several contentions have been urged by both sides as regards to the petitioner not having not replied to the notices by filing replies/documents or appearing personally before the respondent No.3 and his inability and omission to contest the proceedings, is a matter of record and an undisputed fact that the petitioner did not submit his reply to the show-cause notice or pre- intimation notice nor contested the proceedings, which culminated in the impugned ex-parte order. HC-KAR NC: 2025:KHC:41380

8.

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 orders both dated 30.03.2025 passed under section 107(11) of the KGST/CGST Act and remitting the matter back to the respondent No.3 for reconsideration of the matter afresh in accordance with law to the stage of petitioner submitting reply to the notices issued in appeal proceedings by imposing cost of Rs.10,000/- on the petitioner payable to the High Court Legal Services Authority, Bengaluru.

9.

In the result, I pass the following: ORDER (i) The petition is allowed subject to payment of cost of Rs.10,000/- to the High Court Legal Services Authority, Bengaluru. HC-KAR NC: 2025:KHC:41380 (ii) The impugned order at Annexures-F and G dated 30.03.2025 passed by the respondent No.3 are hereby quashed. (iii) The matter is remitted back to the respondent No.3 for consideration of the matter afresh, in accordance with law. (iv) The petitioner is directed to appear before respondent No.3 on 19.11.2025 without awaiting further notice, failing which the present order shall automatically stand recalled without further reference to Bench. (S.R.KRISHNA KUMAR) JUDGE

MDS List No.: 2 Sl No.: 32

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.