Shri M K Kambaiah vs. State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs:
“a. Issue the writ of Certiorari or in the nature of certiorari to quash and set aside the impugned Show Cause Notice dated 29.02.2024 bearing No.CCT/ACCT/LA- 3/Ins-01/SZ/23-24 issued by Respondent No.3 under Sec 74(5) of Central/Karnataka Goods and Services Tax Act, 2017, passed for the period FY 2018-19 (Annexure -C); NC: 2025:KHC:18016 b. Issue the writ of Certiorari or in the nature of certiorari, to quash and set aside the impugned the Order-In- Original dated 26.06.2024, bearing File No.DCCT(A)- 6.6/DGSTO-06/Order/2024-25, issued by Respondent No.2, under Sec 74(9) of the Central/Karnataka Goods and Services Tax Act, 2017, and other consequential actions taken by Respondent No.2 in the case of the petitioner (Annexure -D); c. Issue the writ of Certiorari or in the nature of certiorari, to quash and set aside the impugned Summary of the Order dated 29.06.2024 bearing Reference No. ZD2906241404682 issued by the Respondent No.2, under Rule 100(1), 100(2), 100(3) and 142(5) of the Central/Karnataka Goods and Services Tax Act, 2017 (Annexure -D1); d. Issue the writ of Certiorari or in the nature of certiorari, to quash and set aside the impugned recovery proceedings initiated under Notice 107 of the GST Act 2017 issued by the Respondent No.5 (Annexure -F) and e. Pass such other orders as this Hon'ble Court may deem fit in the interest of justice.”
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 the 3rd respondent issued a pre-intimation notice dated 22.12.2023 under NC: 2025:KHC:18016 Rule 142(1A) of the CGST/KGST Rules, 2017 to the petitioner and thereafter, issued Show Cause Notice dated 29.02.2024 under Section 74(5) of the CGST Act / KGST Act 2017 and subsequently, 3rd respondent issued endorsement calling upon the petitioner to submit his response to the aforesaid Show Cause Notice, to which petitioner submitted a reply dated 18.06.2024. The learned counsel for the petitioner submits that the 2nd respondent without considering the reply filed by the petitioner proceeded to pass the impugned order dated 26.06.2024 under Section 74(9) of the CGST/KGST Act, 2017 confirming the total demand of Rs.1,22,90,535/- including the tax, interest and penalty.
Learned counsel for the petitioner submits that the petitioner had filed its reply on 18.06.2024 to the Show Cause Notice dated 29.02.2024 and the respondent without considering the said reply and without granting an opportunity of personal hearing has passed the impugned order at Annexure–D dated 26.06.2024 and that the impugned order deserves to be quashed and matter be remitted back to the concerned respondent for reconsideration of the matter afresh, in accordance with law by NC: 2025:KHC:18016 providing an opportunity of personal hearing to the petitioner and thereafter, to pass appropriate orders.
Per contra, learned Additional Government Advocate for the respondents would support the impugned order and submits that there is no merit in the petition and that the same is liable to be dismissed.
A perusal of the material on record including the impugned order will indicate that it is an undisputed fact that the petitioner filed its reply to the Show Cause Notice and the impugned order has been passed without considering the reply along with the documents submitted by the reply. Under these circumstances, in view of the respondents failing to consider the reply filed by the petitioner and so also provide reasonable opportunity of personal hearing to the petitioner, by adopting a justice oriented approach and in order to provide one more opportunity to the petitioner, I deem it just and appropriate to set aside the impugned order and remit the matter back to the concerned respondent for reconsideration afresh in accordance with law by issuing certain directions. NC: 2025:KHC:18016
In the result, I pass the following: ORDER i) The petition is hereby allowed; ii) The impugned order at Annexure –D dated 24.01.2025 passed by respondent No.2 is hereby set aside; iii) The matter is remitted back to the stage of submitting reply to the Show Cause Notice at Annexure – C dated 29.02.2024. iv) The petitioner shall appear before the concerned respondent on 26.05.2025, without awaiting further notice, on which date, the petitioner shall submit his reply to the show cause notice along with relevant documents. v) Upon the petitioner submitting reply along with relevant documents to the show cause notice, on 26.05.2025, concerned respondent shall provide reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. NC: 2025:KHC:18016 vi) Liberty is reserved in favour of the petitioner to submit replies, documents etc., which shall be considered by the concerned respondent, who shall provide sufficient and reasonable opportunity to the petitioner and hear him and proceed further in accordance with law. vii) In the event the petitioner does not appear before the concerned respondent on 26.05.2025, this order shall automatically stand recalled / revived, without further reference to the Bench. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 11 Sl No.: 3
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.