M/S Kinglong Hardware INDIA Private Limited vs. The Assistant Commissioner Of Commercial Taxes
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:
"(a) Issue a writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ or order or direction under Article 226 of the Constitution of India ordering to quash the impugned Order No. ACCT/LGSTO-040/2A-Vs-3B/DRC-07/6/2023-24 dated 18.03.2024 (received physically by the Petitioner on 23.11.2024) passed by the Respondent enclosed at Annexure-A and any further proceedings arising out of the said issue; (b) Remand the matter for the purpose of re-adjudication of the show cause notice afresh, with the liberty to the Petitioner to file a response to the show cause notice, after affording an opportunity of being heard in terms of the provisions of the CGST Act, 2017 and the KGST Act, 2017; (c) for such further order(s) and other reliefs as the nature and circumstances of the case may require." HC-KAR NC: 2025:KHC:40709
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 Form GST ASMT-10 in terms of Section 61 of the CGST/KGST Act, 2017 dated 06.10.2023, the respondent issued Form GST DRC-01A dated 15.11.2023 to the petitioner, who did not submit any reply to the same. Thereafter, the respondent issued a show cause notice in Form GST DRC 01 dated 24.11.2023 to the petitioner under Section 73(1) of the CGST Act, to which also the petitioner did not submit any reply. So also the petitioner did not submit a reply to the subsequent intimation dated 05.02.2024 issued by the respondent. Under these circumstances, the respondent proceeded to pass the inmpugned exparte adjudication order dated 18.03.2024 under Section 73(9) of the CGST/KGST Act, aggrieved by which 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:40709 petitioner was not in a position to submit reply and contest the proceedings and as such, it is necessary that the impugned order dated 18.03.2024 is 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 order 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 notice and contest the proceedings, I deem it just and appropriate to adopt justice oriented HC-KAR NC: 2025:KHC:40709 approach and set aside the impugned order at Annexure A dated 18.03.2024 and remit the matter back to the respondent for reconsideration afresh to the stage of the petitioner submitting reply to the show cause notice and contest the proceedings in accordance with law, subject to payment of cost of Rs.15,000/-.
In the result, I pass the following: ORDER (i) The petition is allowed, subject to payment of cost of Rs.15,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today. (ii) The impugned order at Annexure-A dated 18.03.2024 passed by the respondent is hereby quashed. (iii) The petitioner shall appear before the 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. (iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents etc., HC-KAR NC: 2025:KHC:40709 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
BMC List No.: 2 Sl No.: 2
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.