M/S H R Sathish vs. State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, the petitioner seeks the following reliefs:
"(a) Issue writ of certiorari or writ in the nature of certiorari quashing the Adjudication order passed by the Resp-2 bearing Order No.CTO/LGSTO-152/ORDER- TDS/TCS/2024-25 dated 04/02/2025 at Annexure-D for the assessment year 2020-21 insofar as the petitioner is concerned.
(b) Issue writ of Certiorari or Writ in the nature of Certiorari quashing the Demand in DRC 07 issued by the Resp-2 bearing Reference No.ZD2902250156488 dated 05/02/2025 at Annexure-E for the assessment year 2020- 21 insofar as the petitioner is concerned.
(c) Issue Writ of mandamus or Writ in the nature of mandamus directing the respondent-2 to considered the turnover declared by the petitioner for the subsequent year 2021-22, in so far as the petitioner is concerned. HC-KAR NC: 2025:KHC:40516 (d) Issue any other Writ or direction deemed fit in the facts and circumstances the case in the interest of justice and equity including the cost of this Writ Petition."
Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.
A perusal of material on record will Indicate that pursuant to notice in Form GST DRC 01A dated 30.10.2024, petitioner did not submit any reply / response to the same. Subsequently, the 2nd respondent issued a show-cause notice dated 21.11.2024 under Section 73(1) of the KGST Act, 2017 alleging that there is difference in the turnover and the tax liability and to pay the said tax so computed within a period of the 30 days from the date of notice. Since the petitioner did not submit its reply to the said show-cause notice also, the 2nd respondent proceeded to pass the impugned order dated 04.02.2025 under Section 73(9) of the CGST / KGST Act, 2017 confirming the total demand of Rs.16,01,785/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that since the petitioner had declared the said turnover later in the year 2021- HC-KAR NC: 2025:KHC:40516 22, it did not submit replies / documents to the show-cause notice under Section 73(1) of the KGST Act, 2017 and resultantly, couldn’t contest the proceedings. It is contended that the inability and omission on the part of the petitioner to submit a reply to the notice and show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and 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.
Per contra, learned AGA for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.
Though several contentions have been urged by both sides, in view of the fact that the petitioner had declared the said turnover later in the year 2021-22 and hence did not file its reply / documents which culminated in the impugned ex-parte order and 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 HC-KAR NC: 2025:KHC:40516 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 at Annexures - D and E dated 04.02.2025 and 05.02.2025, respectively and remitting the matter back to the 2nd 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 21.11.2024. 7. In the result, I pass the following: ORDER
(i) The petition is hereby allowed.
(ii) The impugned order at Annexure - D dated 04.02.2025 passed by the 2nd respondent under Section 73(9) of the KGST Act, 2017 is hereby set aside.
(iii) The matter is remitted back to the 2nd respondent for reconsideration afresh in accordance with law from the stage of petitioner submitting its reply to the notice dated 21.11.2024 issued under Section 73(1) of the KGST Act, 2017 at Annexure – C subject to the petitioner depositing Rs.90,000/- being 10% of the tax amount within a period of four weeks from today. HC-KAR NC: 2025:KHC:40516 (iv) The petitioner is directed to appear before the 2nd respondent on 18.11.2025 without awaiting further notice from the 2nd respondent.
(v) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the 2nd 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 2nd respondent on 18.11.2025 as stated supra, the present order shall stand automatically recalled without further orders. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 2 Sl No.: 62
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.