M/S Sri Ganesha Enterprises vs. Deputy Commissioner Of Commercial Tax

Heard Shri Shreehari Kutsa, learned counsel appearing for the petitioner and Shri K. Hema Kumar, learned Additional Government Advocate appearing for respondents No.1 and 2. 3. The petitioner is an enterprise, which is registered with the GST. Certificate of registration is granted on 25.09.2019. The petitioner is said to have received an enforcement report from respondent No.1 - the Deputy Commissioner of Commercial Tax (Audit). On 28.11.2019, 4 years thereafter, an issue of intimation of tax is issued by respondent No.1 in the prescribed form, which follows with a show cause notice dated 14.05.2024 and an order dated 19.07.2024. The petitioner aggrieved by the afore-quoted show HC-KAR NC: 2025:KHC:32698 cause notice dated 14.05.2024 and the consequent order is before this court.

The learned counsel appearing for the petitioner inter alia contends that the determination by respondent No.1 is ex-parte. The learned counsel appearing for the petitioner submits that the petitioner has neither received the show cause notice nor the impugned order. Respondent No.1 without hearing the petitioner and on independent application of mind has passed the illegal order. The order under Section 74(9) of the KGST/CGST Act, 2017 suffers from the want of application of mind. He would contend that the order is bad in law for it being in violation of principles of natural justice. He would submit that another opportunity must be given to the petitioner, in the light of the fact that it is an ex-parte order.

Per contra, learned Additional Government Advocate would contend that if the petitioner is wanting to submit on merits, he would file his statement of objections, but admits the fact that the petitioner did not participate in the proceedings. HC-KAR NC: 2025:KHC:32698

In the light of the admitted circumstance of the petitioner not receiving the show cause notice nor the impugned order, which has led to further proceedings being taken against the petitioner, I deem it appropriate to dispose the petition, remitting the matter back to the hands of respondent No.1 to the stage of show cause notice directing the petitioner to furnish his reply to the said notice and respondent No.1 to take the matter to its logical conclusion by regulating its procedure and keeping all the other contentions open to be urged before the authority or before the appropriate fora.

For the aforesaid reasons, the following ORDER (i) The writ petition is allowed-in-part. (ii) The matter is remitted back to the hands of respondent No.1 from the stage of show cause notice. (iii) The petitioner is permitted to submit his reply to the show cause notice dated 14.05.2024, within an outer limit of four weeks from the date of receipt of copy of the subject order. HC-KAR NC: 2025:KHC:32698 (iv) Respondent No.1 then shall regulate its procedure and take the issue to its logical conclusion. (v) In the light of the fact that the impugned proceedings are ex-parte, the impugned notices and consequent orders shall stand quashed. (vi) All contentions except the one answered during the course of the order shall remain open. (M.NAGAPRASANNA) JUDGE