Bhairava Stone Crushers vs. Deputy Commissioner Of Commercial Taxes - Karnataka High Court, 11 September 2025

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:36080 WP No. 25639 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 25639 OF 2025 (T-RES) BETWEEN: BHAIRAVA STONE CRUSHERS, PARTNERSHIP FIRM, REGISTERED UNDER PARTNERSHIP ACT, 1932, REPRESENTED BY ITS PARTNER, SHRI. S D DILIP KUMAR, OFFICE AT NO.6, SY.NO.31, AJJAPANAHALLI, KASABA HOBLI, TUMKUR-572106. …PETITIONER (BY SRI. MADHU N .RAO., ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF COMMERCIAL TAXES, AUDIT DIVISIONAL GOODS AND SERVICE TAX OFFICE-06, VANIJYA TERIGE SANKEERNA, 2ND FLOOR, SIDDARAMESHWARA EXTENSION, TUMKUR-572103. 2. THE BRANCH MANAGER, UNION BANK OF INDIA (EARLIER CORPORATION BANK), Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:36080 WP No. 25639 of 2025 M.G. ROAD, P B NO.39, TUMKUR-572101. …RESPONDENTS (BY SRI.K.HEMA KUMAR, AGA FOR R1) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION TO SET ASIDE QUASH THE IMPUGNED

ORDER DCCT (AUDIT)/TMK/ADT/2024-25 DATED 27.02.2025 PASSED BY RESPONDENT NO.1 WHICH IS ENCLOSED AT ANNEXURE B TO THIS WRIT PETITION; (B) ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION TO SET ASIDE / QUASH THE IMPUGNED NOTICE TO THIRD PERSON, FORM GST DRC-13 BEARING NO.DCCT(AUDIT)-TMK196/2025-26 DATED 14.07.2025 ISSUED BY RESPONDENT NO.1 TO RESPONDENT NO.2 WHICH IS ENCLOSED AT ANNEXURE C TO THIS WRIT PETITION AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: HC-KAR NC: 2025:KHC:36080 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

Petitioner is before this Court seeking the following prayers: "(a) Issue a writ of certiorari or any other writ or direction to set aside / quash the impugned Order DCCT(Audit) MK/ADT/2024-25 dated 27.02.2025 passed by Respondent No.1 which is enclosed at ANNEXURE B to this Writ Petition; (b) Issue a writ of certiorari or any other writ or direction to set aside / quash the impugned Notice to third Person, Form GST DRC-13 bearing NO.DCCT(Audit)- TMK196/2025-26 dated 14.07.2025 issued by Respondent No.1 to Respondent No.2 which is enclosed at ANNEXURE C to this Writ Petition; (c) Grant such other order or direction as deemed fit by this Hon'ble Court in the facts and circumstances of the case."

Heard Sri.Madhu N Rao, learned counsel appearing for the petitioner, Sri.K.Hemakumar, learned AGA appearing for the respondent No.1 and have perused the material on record.

Petitioner has a certification GST, it having been issued on 8.7.2018. After about six years, show cause notice comes to be issued to the petitioner and the petitioner does not appear to answer the show cause notice. Therefore, the HC-KAR NC: 2025:KHC:36080 impugned order is passed and as a consequence thereof, the account of the petitioner is frozen. The petitioner is now before this Court contending that it was an ex parte proceedings for the determination of penalty or the freezing of the account as the case would be.

Learned Additional Government Advocate appearing for the respondent No.1 submits that it is not once but on plethora of occasions, notices were issued to the petitioner to appear before the authority and they have failed to appear and they appear before this Court only when an order is passed and the account is frozen but would submit that in the light of the order being ex parte, in the event the court is considering the submissions on behalf of the learned counsel for the petitioner, they should be directed to appear on a particular date.

I have given my anxious consideration to the submissions made by learned counsel for the parties and have perused the material on record. HC-KAR NC: 2025:KHC:36080

The afore-narrated facts are not in dispute. The proceedings are instituted against the petitioner and pursuant to the show cause notice so issued, several notices are issued directing the petitioner to appear before the authority. This is an admitted fact. The petitioner did not appear before the authority which led to the concerned respondent passing an order and directing freezement of the account. Therefore, it is admitted fact that the petitioner did not participate in the proceedings and is now suffering an order though the petitioner has not bothered to appear pursuant to the notices, the fact remains that it is ex parte.

In the light of the admitted fact that the proceedings are ex parte, which has lead to passing the order of freezment of the account of the petitioner, I deem it appropriate to grant one opportunity to the petitioner to appear before respondent No.1 - the Authority, who shall regulate the procedure, taking the issue to its logical conclusion.

In that light, I deem it appropriate to obliterate the impugned orders and direct the petitioner to appear before respondent No.1 – Authority on a particular date. HC-KAR NC: 2025:KHC:36080

For the aforesaid reasons, the following: O R D E R a. The Writ Petition is allowed. b.Impugned Order bearing No.DCCT(Audit)/ MK/ADT/2024-25 dated 27.02.2025, passed by respondent No.1 stands quashed. c. Impugned notice to third Person, Form GST DRC-13 bearing No.DCCT(Audit)-TMK196/2025-26 dated 14.07.2025 issued by Respondent No.1 to Respondent No.2 stands quashed. d. Petitioner shall appear before respondent No.1 on 10.10.2025 at 2.30 p.m. e. As a consequence of the quashment of the impugned order and the notice, the freezed account of the petitioner shall be defrozen and be permitted to operate in a normal way. HC-KAR NC: 2025:KHC:36080 f. Respondent No.1 - Authority is at liberty to regulate its procedure on the appearance of the petitioner on 10.10.2025. Ordered accordingly. (M.NAGAPRASANNA) JUDGE

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