BharatTaxGST

G Corp Power Private Limited vs. Deputy Commissioner Of Commercial Taxes

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WP/13206/2025HC KarnatakaGSTCNR KAHC01030163202529 April 2025Bench: S.R.KRISHNA KUMAR6 pages
For Petitioner: SRI. SHREEHARI, DVOCATEFor Respondent: SMT. JYOTI M. MARADI, HCGP

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Cause title — parties, addresses and appearances
- 1 - NC: 2025:KHC:18011 WP No. 13206 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 13206 OF 2025 (T-RES) BETWEEN: G CORP POWER PRIVATE LIMITED A PRIVATE LIMITED COMPANY UNDER THE COMPANIES ACT, 2013 HAVING REGISTERED OFFICE AT NO. 81/37, THE HULKUL, LAVELLE ROAD, SHANTHINAGAR, OPP. DAINESE SHOE ROOM, ASHOK NAGAR, BENGALURU – 560 001. REPRESENTED BY ITS DIRECTOR SRI A S JAYASIMHA, SON OF SRI A S PRAHLADA RAO, AGED 72 YEARS. …PETITIONER (BY SRI. SHREEHARI, DVOCATE) AND: 1. DEPUTY COMMISSIONER OF COMMERCIAL TAXES, (AUDIT)-1.7, DGSTO-1, BENGALURU THE PROPER OFFICER UNDER THE CENTRAL/STATE GOODS AND SERVICE TAX ACT, 2017, 3RD FLOOR, TTMC, BMTC BUILDING, YESHWANTHPUR, BENGALURU – 560 022. 2. COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), BENGALURU VANIJYA TERIGE KARYALAYA, A BLOCK, 80FT ROAD, NEAR K H B GAMES VILLAGE, KORAMANGALA, BENGALURU – 570 047. …RESPONDENTS (BY SMT. JYOTI M. MARADI, HCGP) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:18011 WP No. 13206 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT QUASHING THE INTIMATION U/S 73(5) OF THE KARNATAKA GOODS AND SERVICE TAX ACT, 2017, DATED 27.12.2023 BEARING REFERENCE NO. AD2912230492058 ISSUED IN FORM GST DRC 01A ALONG WITH ITS SUMMARY ISSUED BY THE RESPONDENT NO. 1 AND ENCLOSED AS ANNEXURE-C AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:

“a. Issue a writ or certiorari or any other suitable writ quashing the intimation u/s 73(5) of the Karnataka Goods and Service Tax Act, 2017 dated 27.12.2023 bearing reference no. AD2912230492058 issued in Form GST DRC 01A along with its summary issued by the Respondent No.1 and enclosed as Annexure- C. b. Issue a writ of certiorari or any other suitable writ quashing the show cause notice u/s 73(9) of the Karnataka Goods and Service Tax Act, 2017 and u/s 20 of the Integrated Goods and Service Tax Act, 2017 read with section 73(9) of the Central Goods and Service Tax Act, 2017 dated 27.01.2024 bearing No.DCCT/AUDIT-1.7/DGSTO-1/ADT-02/SCN/T.No./ 2023-24 along with the summary form in DRC 01 issued by the Respondent No.1 and enclosed as Annexure-D. NC: 2025:KHC:18011 c. Issue a writ or certiorari or any other suitable writ quashing the adjudication order u/s 73(9) of the Karnataka Goods and Service Tax Act, 2017 and u/s 20 of the Integrated Goods and Service Tax Act, 2017 read with section 73(9) of the Central Goods and Service Tax Act, 2017 dated 23.04.2024 bearing No. DCCT/AUDIT-1.7/DGST(ADT)-02/ADJ./T.NO./2024- 25 along with the summary in form GST DRC 07 issued by the Respondent No.1 and enclosed as Annexure-E. d. Grant such other reliefs as this Hon’ble Court deems fit in this matter including but not limited to costs of this petition.”

2.

Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.

3.

A perusal of material on record will indicate that the respondent no.1 issued a show-cause notice dated 27.01.2024 under section 73(1) of the CGST/KGST Act 2017 to the petitioner. The petitioner did not submit any reply/response to the same. Since the petitioner did not submit his reply to the aforesaid notice, respondent No.1 proceeded to pass the impugned adjudication order dated 23.04.2024 and 29.04.2024 at Annexure-E, which is assailed in the present petition. NC: 2025:KHC:18011

4.

Learned counsel for the petitioner submits that since the petitioner could not discharge the professional fees of the Chartered Accountant, the said Chartered Accountant did not file any reply to the said show-cause notice, which culminated in the impugned ex-parte order. The learned counsel for the petitioner submits that the inability and omission on the part of the petitioner to submit a reply to the show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause and submits that if one more opportunity is provided, by setting aside the impugned order, the petitioner would submit reply to the show-cause notice and contest the proceedings.

5.

Per contra, learned HCGP for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.

6.

Though several contentions have been urged by both sides as regards petitioner’s inability and omission to contest the proceedings, it is a matter of record and an undisputed fact that the petitioner did not submit his reply to the show-cause notice nor NC: 2025:KHC:18011 contested the proceedings, which culminated in the impugned ex- parte order.

7.

Under these circumstances, 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 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 dated 23.04.2024 and 29.04.2024 and remitting the matter back to respondent No.1 for reconsideration of the matter afresh in accordance with law to the stage of petitioner submitting reply to the impugned show-cause notice dated 27.01.2024. 8. In the result, I pass the following: ORDER i. The petition is allowed.

ii. The impugned orders at Annexure-E dated 23.04.2024 and 29.04.2024 passed by respondent No.1 is hereby set side, subject to the petitioner NC: 2025:KHC:18011 depositing 10% of the tax amount with respondent No.1, which would be subject to final outcome of the proceedings.

iii. The matter is remitted back to respondent No.1 for reconsideration afresh, from the stage of petitioner submitting its reply to the show-cause notice dated 27.01.2024 at Annexure D and proceed in accordance with law, bearing in mind the pleadings and in accordance with law.

iv. Liberty is reserved in favour of the petitioner to produce additional pleadings and documents etc., which shall be considered by the respondent, in accordance with law. (S.R.KRISHNA KUMAR) JUDGE

BMC List No.: 1 Sl No.: 45

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.