M/S. Aslam Habib vs. The Assistant Commissioner
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs:
"a. Issue a writ of certiorari, thereby setting aside the Impugned Order Form GST DRC-07, Reference No.ZD2908241174439 dated 31.08.2024 [Annexure-A] passed by the respondent as being void, arbitrary, illegal violative of principles of natural justice and consequently, set aside the same.
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 AGA for the respondent and perused the material on record.
A perusal of material on record will indicate that pursuant to the notice in Form GST DRC – 01A dated 18.05.2024, the respondent issued a show-cause notice dated 23.05.2024 under Section 73(1) of the CGST / KGST Act, 2017 alleging that the petitioner had claimed ineligible ITC in contravention of the provisions of the Act. The petitioner filed his reply dated 16.07.2024 and sought for an opportunity of personal hearing. Subsequently, the respondent passed the impugned order dated 31.08.2024 HC-KAR NC: 2025:KHC:40511 under Section 73 of the KGST Act, 2017 confirming the total demand of Rs.18,68,046/- including the tax, interest and penalty.
The learned counsel for the petitioner submits that though request for an opportunity of personal hearing was made by the petitioner, the respondent-revenue without granting the same proceeded to pass the impugned order and thereby violated the principles of natural justice. Aggrieved by the said order, the petitioner having no option has approached this Court by way of the present petition interalia contending that an opportunity of personal hearing was not granted to the petitioner before passing the impugned order, which is in violation of principles of natural justice.
Per contra, learned AGA for the respondent 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 the petitioner had filed its reply / documents to the aforesaid notices and had also sought for an opportunity of personal hearing. It is further HC-KAR NC: 2025:KHC:40511 submitted that the respondent-revenue without granting an opportunity of personal hearing has passed the impugned ex-parte order.
Under these circumstances, having regard to the specific assertion on the part of the petitioner that he was not provided with sufficient opportunity to put-forth its claim and contest the proceedings which culminated in the impugned order, 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 31.08.2024 and 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 23.05.2024. 8. In the result, I pass the following: ORDER
(i) The petition is hereby allowed subject to the petitioner depositing cost of Rs.10,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today. HC-KAR NC: 2025:KHC:40511 (ii) The impugned order dated 31.08.2024 passed by the respondent under Section 73(9) 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 23.05.2024 issued under Section 73(1) of the CGST/KGST Act, 2017. (iv) The petitioner is directed to appear before the respondent on 24.11.2025 without awaiting further notice from the respondent.
(v) Liberty is reserved in favour of the petitioner to submit pleadings, replies, documents etc., which shall be considered by the respondent, who shall 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 24.11.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 69
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.