M/S Mineral Enterprises Private Limited vs. The Commissioner Of Commercial Taxes

2023 passed by the Assistant

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

A perusal of the material on record will indicate that pursuant to issuance of intimations in ASMT – 10 dated 13.09.2022 in respect to I issue and ASMT-10 dated 14.09.2022 in respect to output tax issue, the respondent issued Show Cause Notices dated 14.09.2023 and 14.06.2023 to the petitioner, who did not submit any reply to the same. Under these circumstances, respondent No.2 proceeded to pass the impugned exparte adjudication orders dated 21.12.2023 on I issue and 23.12.2023 on output tax issue to the petitioner, aggrieved by which, the petitioner filed two separate appeals before respondent No.3 under Section 107 of the CGST/KGST Act, which came to be rejected by respondent No.3 vide orders both dated 11.02.2025. Aggrieved by the same, the petitioner is before this Court by way of the present petition.

It is a specific contention of the petitioner that he did not receive the aforesaid notices, orders etc, and due to bonafide reasons, unavoidable circumstances and sufficient cause, the HC-KAR NC: 2025:KHC:41022 petitioner was not in a position to submit reply and contest the proceedings and as such, it is necessary that the impugned orders dated 21.12.2023 and 23.12.2023 are set aside and the matter be remitted back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and to proceed further in the matter.

Per contra, learned HCGP for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed.

A perusal of the material on record will indicate that though several contentions have been urged by both sides in support of their respective claims, it is an undisputed fact and a matter of record that the petitioner did not submit any replies to the notices issued by the respondent nor did he participate in the impugned proceedings, which culminated in the impugned exparte adjudication orders in the absence of the petitioner. Under these circumstances, in order to provide one more opportunity to the petitioner to submit reply to the show cause notices and contest the proceedings, I deem it just and appropriate to adopt justice oriented HC-KAR NC: 2025:KHC:41022 approach and set aside the impugned orders at Annexures – A1 and B1 dated 21.12.2023 and 23.12.2023 and remit the matter back to the respondent No.2 for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notices and contest the proceedings in accordance with law.

In the result, I pass the following: ORDER (i) The petition is allowed. (ii) The impugned orders at Annexures-A1, A2 and A3 dated 11.02.2025 and impugned orders at Annexures- B1, B2 and B3 dated 23.12.2023 passed by respondent No.2 are hereby quashed. (iii) Consequently, the orders dated 11.02.2025 at Annexures-H and J passed by respondent No.3 are hereby quashed. (iv) The petitioner shall appear before the concerned respondent on 18.11.2025 without awaiting further notice from the respondent, failing which the present order shall stand recalled automatically, without further reference to the Bench and without further orders. (v) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents etc., HC-KAR NC: 2025:KHC:41022 which shall be considered by the respondent, who shall provide sufficient and reasonable opportunity to the petitioner, hear him and proceed further, in accordance with law. (S.R.KRISHNA KUMAR) JUDGE