M/S. Nandi Feeds vs. Union Of INDIA
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Cause title — parties, addresses and appearances
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:-
i) Issue a writ of Certiorari or direction in the nature of a writ or certiorari quashing the order of adjudication passed under section 73(9) of the GST Act issued by the Respondent No.4 dated 30.11.2023 for the period July 2017 March 2018 bearing No. ACCT(ADT)-4/DVG/2023-24 bearing reference No.ZD291123048832D herein marked as Annexure-A1. ii) Issue a writ in the nature of Certiorari and quash the Summary of the order in FORM GST DRC 07 by the Respondent No.4 dated 30.11.2023 bearing reference No. HC-KAR NC: 2025:KHC:40224 ZD291123048832D herein enclosed and marked as Annexure-A2
iii) Issue a writ in the nature of certiorari and quash the Show cause notice issued under section 73(1) of the GST Act dated 15.09.2023 for the Period July 2017 March2018 by the Respondent No.4 bearing No. bearing No. ACCT(Audit-4)/Dvg/T./2023-24 herein enclosed and marked as Annexure-B1. iv) Issue a writ in the nature of certiorari and quash the summary of Show cause notice in FORM GST DRC 01 dated 15.09.2023 by the Respondent No.4 bearing Reference No. ZD290923022203L herein enclosed and marked as Annexure-B2. v) Issue a writ in the nature of certiorari and quash the Audit Report issued under section 65(6) read with rule 101(5) of the GST rules dated 19.06.2023 by the Respondent No.4 bearing No. ACCT(ADT)-4/DVG/2023-24 herein enclosed and marked as Annexure-C.
vi) Declare that the impugned Notification No.9/2023-CT dated 31.03.2023 is illegal and ultra vires the provisions of section 168A of Central Goods and services Act, 2017 and issue a writ of certiorari or any other appropriate writ or order or direction and quash the impugned Notification No.09/2023-CT dated 31.03.2023 referred as Annexure-D1. vii) Declare that the impugned Notification No 06/2023 dated 06.04.2023 is illegal and ultra vires the HC-KAR NC: 2025:KHC:40224 provisions of section 168A of. Karnataka Goods and Service Act, 2017 and issue a Writ of Certiorari or any other appropriate writ or order or direction and quash the impugned Notification No 06/2023 dated 06.04.2023 referred to as Annexure - D2
viii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.
Heard learned counsel for the petitioner and learned counsel for the respondent Nos.1 and 2 and learned AGA for respondent Nos.3 and 4 and perused the material on record.
A perusal of material on record will indicate that pursuant to an Intimation at Annexure-F in Form DRC-01A dated 19.08.2023, the respondent No.4 issued a show-cause notice dated 15.09.2023 under Section 73(1) of the CGST/KGST Act, 2017 alleging that there was short-declaration of output tax liability. Subsequently, the respondent No.4 passed an adjudication order dated 30.11.2023 under Sections 73(9) and 73(10) r/w Sections 9 and 50 of the CGST / KGST Act confirming a total demand of Rs.9,61,160/- along with interest of Rs.7,48,740/- and a penalty of Rs.96,116/-, without granting an opportunity of personal hearing to HC-KAR NC: 2025:KHC:40224 the petitioner. Aggrieved by which, the petitioner is before this Court by way of the present petition.
In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner’s father, who is a senior citizen was undergoing treatment for a serious medical condition that necessitated a below knee amputation. Following the surgery, the petitioner’s father required continuous post-operative care, including frequent hospital admissions and medical supervision and hence, couldn't submit replies/ documents to neither the pre- intimation notice nor the show-cause notice under section 73(1) of the CGST/KGST Act, 2017 and resultantly couldn’t contest the proceedings. Respondent No.4 has proceeded to pass the impugned ex-parte order, which is violative of the principles of natural justice and the same deserves to be set aside and the respondent No.4 may be directed to pass fresh order after granting an opportunity of personal hearing to the petitioner. It is further submitted that the impugned proceedings initiated pursuant to the impugned show cause notice dated 15.09.2023 is barred by limitation under Section 73(10) of the KGST Act and as such, the HC-KAR NC: 2025:KHC:40224 availability of equivalent, efficacious and alternative remedy by way of filing of an appeal under Section 107 of the CGST / KGST Act would not come in the way of the petitioner prosecuting the present petition.
Per contra, learned HCGP for the respondents – revenue submits that the period of limitation has been extended by the respondents vide Notification No.13/2022 dated 05.07.2022, Notification Nos.9 and 56 of 2023 dated 31.03.2023 and 08.12.2023 respectively and as such, it cannot be said that the proceedings are barred by limitation.
Learned counsel for the petitioner would invite my attention to the Petition in Special Leave Appeal (C) No. 4240/2025 pending before the Apex Court in order to contend that the validity of the said Notifications are seized by the Apex Court and pending adjudication before the Hon’ble Supreme Court.
In view of the aforesaid facts and circumstances and the submissions made by both sides which will indicate that the validity of the aforesaid Notifications are seized by the Apex Court and which will have an impact / bearing on the impugned proceedings, I HC-KAR NC: 2025:KHC:40224 am of the view that one more opportunity is required to be granted in favour of the petitioner by setting aside the impugned adjudication order and remitting the matter back to the respondents for reconsideration afresh in accordance with law by issuing certain directions.
Under these circumstances, in order to avoid multiplicity of proceedings and to ensure that there are no conflicting orders, I deem it just and appropriate to direct the respondent No.4 to reconsider the matter afresh and pass a fresh adjudication order in accordance with law after disposal of Special Leave to Appeal (C) No.4240/2025 by the Apex Court.
In the result, I pass the following:- ORDER
(i) Petition is hereby allowed, subject to payment of cost of Rs.10,000/- to the Karnataka High Court Legal Services Authority, Bengaluru, within a period of six weeks from today.
(ii) The impugned order at Annexures- A1 and A2 both dated 30.11.2023 passed by the respondent No.4 are hereby set aside. HC-KAR NC: 2025:KHC:40224 (iii) The matter is remitted back to the respondent No.4 for reconsideration afresh and pass a fresh adjudication order in accordance with law after disposal of SLP No.4240/2025 pending before the Hon’ble Apex Court.
(iv) The period between the date of the impugned order i.e., 30.11.2023 and the date on which the Apex Court disposes of the aforesaid SLP No.4240/2025 shall stand excluded for the purpose of limitation. (S.R.KRISHNA KUMAR) JUDGE
MDS List No.: 2 Sl No.: 38
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.